A new index will track global companies that derive 50% or more of their business from products and services related to the environment.
KLD Indexes and Jantzi Research, Inc. developed the Global Environment 60 Index to "address global trends that will have a profound impact on
capital markets, including demographic shifts, industrialization of the
developing world, and climate change," according to a release.
Companies included will be involved in one of five envrionmental themes: sustainable water, alternative energy, clean technology, green building or pollution prevention.
Canada’s Claymore Investments Inc. already plans to offer an exchange-traded fund to individual and institutional investors based on the Global Environment 60. That fund will be traded on the Toronto Stock Exchange.
"There is growing worldwide demand for greener products and services. The Global Environment 60 highlights promising companies that are helping meet this demand," Michael Jantzi, President of Jantzi Research said.
KLD Indexes and Jantzi select the top 12 companies (by float-adjusted market capitalization) from each of the five themes.
The Global Environment 60(GE60) is the first of the Global
Environment IndexSM (GEI) series, which will also include an index
based upon each GEI theme and a benchmark index that will aggregate all
constituents of the five themed indexes.
"The Global Environment 60 identifies companies that stand to benefit from better environmental practices, and it enables investors to benefit as well," said Thomas Kuh, Managing Director of KLD Indexes.
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