FTSE Group has launched an environmental technologies index, FTSE ET100, designed to measure the performance of companies whose core business is in the development and operation of environmental technologies.
To qualify, companies must derive at least 50 percent of their business from environmental markets. These include renewable and alternative energy, energy efficiency, water infrastructure and technology, waste management and technologies, pollution control and environmental support services, as defined by the FTSE environmental markets classification system.
UK fund group Jupiter has adopted the new index as the benchmark for its Jupiter Ecology Fund, FTSE says.
FTSE Director David Harris says the index provider has seen huge changes in the shape of the market in recent years. While in the past it was dominated by a small number of large renewable energy companies, today the energy efficiency (31.1 percent) and water infrastructure and technology (21.7 percent) sectors represent the largest sector weights of the index.
There are now 21 indices in the associated FTSE Environmental Markets Series including the environmental technology indices. These include the FTSE ET50 index, the sister index of the FTSE ET100, which was first launched in 1999, making the ET50 the longest running environmental technology index in the world, FTSE says.
The index provider also runs the FTSE4Good index, which tracks companies’ performance across environmental, social and governance (ESG) factors.
Mitsubishi, Swiss-based healthcare equipment provider Nobel Biocare and US semiconductor makers Applied Materials and Micron Technology were dropped from the FTSE4Good Index last month for failing to meet environment or social criteria required to remain ethical investment stock market index.
In its semi-annual review, the index added 20 companies including US businesses ADT, Iron Mountain, Salesforce.com, Union Pacific, real estate investment trust Ventas and healthcare care equipment and services provider Wellpoint.