[SPN-Discussion] S&P launches a low carbon version of the S&P 500 with Trucost

[Cary Krosinsky]

(apologies for any cross-posting)
 
 

S&P launches low-carbon index

By Sophia Grene 

FT.com

Published: March 8 2009 09:07 | Last updated: March 8 2009 09:07

 

Standard & Poor's today launches a low carbon version of the S&P 500. 

The S&P US Carbon Efficient Index will track around 350 companies chosen for their carbon efficiency. 

The index weightings will be partly based on carbon scores and partly on rules designed to ensure the new index tracks the S&P 500 as closely as possible.

"This is a concept that has got increasing visibility over the last few months," said David Blitzer, who chairs S&P's index committee. 

"The demand is coming from clients who are looking for things that will sell well."

Deutsche Bank, which contributed to the development of the index, is planning to launch an exchange traded fund tracking it.

The carbon emissions data underlying the index is provided by Trucost, an environmental research agency. This is the first collaboration between S&P and Trucost, but Mr Blitzer hinted it would not be the last.

"One way to look at this is that it's giving us an opportunity to learn about Trucost and have a look at what they've got to offer."