The index is made up of over 450 constituents covering alternative energy, water, and waste management companies, according to a press release. 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.
The FTSE Environmental Opportunities All-Share 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, exchange-traded funds (ETFs), and index funds. The company said Russell Investments has already licensed the index for an environmental technology multi-manager fund.
“The FTSE Environmental Opportunities All-Share index will appeal to institutional and retail investors who want to gain exposure to and track the performance of those companies who are transforming their businesses to increasingly source revenues from global environmental markets,” said Will Oulton, Head of Responsible Investment at FTSE, in the release.