FTSE launches fossil-free, green economy index

Tesla and Vestas replace the likes of ExxonMobil and Rio Tinto in product to help investors back low carbon economy

(Flickr/Mariano Mantel)

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FTSE Russell is launching an index excluding coal, oil and gas producers, in response to investor demand.

The FTSE Divest-Invest Developed 200 Index will replace fossil fuel companies with green alternatives.

Waste Management, Tesla Motors and Vestas Wind Systems are the three biggest low carbon firms on the list.

Kevin Bourne, managing director of database services at FTSE Russell, said: “We’ve seen a rapid expansion of the green businesses of many companies around the world.

“What’s been missing from measures of the ‘green transition’ is exposure to this growth side of the opportunity.”

The Paris Agreement signed by leaders this month “put climate risk at the top of the agenda” added Neven Graillat of BNP Paribas, which collaborated on the product.

“For the first time, investors are being offered a way to assess companies based on their green revenues.”

 

Read more on: Carbon bubble | Divestment