S&P unveils US Carbon Efficient Index

S&P has released the first in a range of global low carbon indices, designed to meet increasing inve...

S&P has released the first in a range of global low carbon indices, designed to meet increasing investor demand for environmentally focussed indices.

The S&P US Carbon Efficient Index measures the performance of large cap US companies with low carbon emissions and seeks to track the return of the S&P 500 index. It provides a market benchmark while enabling investors to access financial products with exposure that is environmentally efficient.

The index consists of S&P 500 constituents with a relatively low carbon footprint, according to calculations by Trucost, an environmental data organisation which verifies its calculations on an annual basis. Carbon footprint is calculated as the company's annual greenhouse gas emissions assessment, divided by annual revenue. The index is also rebalanced on a quarterly basis, with stocks ranked by their carbon footprint.

S&P's index services managing director and chairman of the index committee, David Blitzer, commented: "Organisations around the world are paying greater attention to the impact of greenhouse gases on our climate, as more investors consider carbon efficiency as an important investment theme.

S&P's is the first independent index provider to offer a broad US market index with an environmental focus."

This latest index joins the existing global thematic family which comprises green themes such as water, forestry, eco and carbon efficiency.