Environmental Opportunities All-Share Index’, which is made up of over 450 constituents covering the alternative energy, water and waste management companies.
The constituents are taken from the ‘FTSE Global Equity Index Series’ and are included in the index if a minimum of 20% of their revenue comes from environmental markets or technologies, which are of increasing interest to investors globally.
Constituents are researched by Impax Group, a specialist environmental investment company, who have collaborated with FTSE to develop a range of indices within the environmental technology space.
FTSE said the new index is designed to provide investors with a benchmark consisting of companies who have a significant involvement in environmental technologies and therefore offers a broad environmental exposure opportunity to investors.
The company said the top 10 constituents of the index include Siemens AG, Suez, Iberdola, ABB, United Technologies, 3M Company, ENEL, Emerson Electric, Honeywell International Incorporation and Koninklijke Phillips Electronic.
The index provides an investible and transparent measure of the performance of the global environmental technology sector and is available for investors to use as the basis of structured products, ETFs and index funds.
FTSE said Russell Investments have already licensed the index for an environmental technology multi-manager fund.
FTSE’s head of responsible investment Will Oulton said: “The index will appeal to institutional and retail investors who want to gain exposure to and track the performance of companies who are transforming their businesses to increasingly source revenues from global environmental markets.”
Impax chief executive Ian Simm said: “Environmental investment is a compelling growth story now firmly in the mainstream. To reflect this, it needs a credible benchmark. We are delighted to continue this partnership with FTSE, marrying their index expertise and our in depth sector knowledge.”