FTSE Russell, the global index provider, today announces its new FTSE All-World ex Coal Index Series. The suite of benchmarks will omit companies that have certain exposure to coal or general mining companies with proved and probable coal reserves.
The new index series will assist market participants in managing their portfolio exposure linked to fossil fuels.
The methodology behind the indexes is based on the exclusion of companies whose principal business activity is either Coal Mining or General Mining as identified by the Industry Classification Benchmark (ICB).
In addition, revenues must arise from various forms of Coal Mining as stated by the Standard Industrial Classification (SIC) System or based on the company’s most recent published Annual Report and Accounts.
This exclusion methodology is designed to be transparent, easy to understand, quantifiable and repeatable across FTSE’s Global Equity Index Series (FTSE GEIS), which covers approximately 7,400 companies that represent almost 98% of global market capitalisation.
FTSE Russell is also developing custom ex coal solutions in line with impending legislation in Norway and California in the United States. These new indexes follow on from last year’s launch of the FTSE All-World ex Fossil Fuels Index Series, an innovative set of benchmarks that omit companies linked to exploration, ownership or extraction of fossil fuels.
Kevin Bourne, Managing Director, Database Services, FTSE Russell, said: “This winter, senior politicians and businessmen will attend the 2015 UN Climate Change Conference in Paris to discuss what is widely seen as one of the most important investment issues of our generation.
“As a leading global index provider, FTSE Russell recognises the significance of this debate, and has been at the forefront of developing benchmarks to assist market participants to manage their fossil fuel exposure.
“We will continue to innovate across the sector and support our customers’ requirements as they increasingly seek to define, measure and model the industrial transition to a Low Carbon or ‘Green’ Economy.”
This latest announcement from FTSE Russell further extends London Stock Exchange Group’s commitment to offering “green services and products” and comes shortly after the recent launch of a full range of dedicated fixed income segments specifically designed for green bond issuance. The aim of which is to promote greater transparency in the market by providing green bond instruments with a specific position within London Stock Exchange’s standard debt markets helping investors to identify ‘green’ instruments more easily.
The City of Gothenburg launched the first green bond on the segments earlier this month with Shanks Group, the waste-to-product business, also issuing the first retail targeted green bond.
Like our Facebook Page
Prominent Trends in Seafood Sustainability in 2022
Can PEMF Help To Improve Plant Growth for Eco-Friendly Gardeners
How the U.S. Government is Promoting Green Energy in the Country
12 Essential Things for Buying Your First Home
Harnessing Sustainability with User-Centric Technology Innovation
Making Your Dream of Having an Eco-Friendly Garden Come True
Tips for Optimal Waste Management in Your Home
The Agricultural Benefits of Weather Stations for Eco-Friendly Farmers
What Makes Online Furniture Eco-Friendly?
How Eco-Friendly Indian Tourists Can Apply for Visas to Brazil
7 Eco-Friendly Plant-Based Alternatives for Everyday Products
Teaching Them While They’re Young: Sustainability Tips for All Ages
Top 5 Benefits of Eco-Friendly Cars
Why Eco-Friendly Homes Should Have Outdoor Bathrooms
Merits of Sustainability Reporting: What Every Manager Must Know
Low Emission and Clean Air Zones: What You Need To Know
4 Ways To Build A Sustainable Home
Why Transitioning Your Company to an EV Fleet Makes Sense?
CEO Brian Ladin Explains How The Shipping Industry Is Going Green
A Guide to Eco-Friendly Landscaping
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy11 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features10 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor