Index profile

FTSE Environmental Markets Index Series

Index family
FTSE Environmental Markets Index Series
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Principles

The FTSE Environmental Markets Index Series measures the performance of companies globally that have significant involvement in environmental technology and environmental business activities, including renewable & alternative energy, energy efficiency, water technology and waste & pollution control.
Created in collaboration with environmental technology specialist Impax Asset Management, the series comprises the FTSE Environmental Technology Index Series and the FTSE Environmental Opportunities Index Series, providing a range of attractive investment solutions in this growing area, and further enhancing FTSE’s suite of Responsible Investment indices.

Global environmental technology companies are identified by Impax Asset Management as those businesses whose activities provide value-added solutions to environmental problems, falling into one of the three categories below:

- Alternative Energy & Energy Efficiency e.g. wind turbine and solar manufacturers
- Water Technologies & Pollution Control e.g. filtration, purification & separation technology companies
- Waste Technologies & Resource Management e.g. production using recycled material

Impax Asset Management’s selections are then approved by FTSE’s Environmental Technology Advisory Committee.

Impax Asset Management then conduct further analysis on each of the selected companies, considering each of the following parameters:

(1) Environmental technology revenues versus total revenues
(2) Environmental technology-invested capital versus total invested capital
(3) Net income of environmental technology business versus total net income of company

FTSE Environmental Technology Index Series Methodology
A company will be considered a ‘pure-play’ ET company if any of the three parameters is greater than 50%. – Of the eligible companies, the top 50 companies worldwide by full market capitalisation are then selected as the constituents of the FTSE ET50 Index.

FTSE Environmental Opportunities Index Series Methodology
A company will be considered an environmental opportunity company if any of the three parameters is greater than 20%. - All eligible companies are included within the indices, according to index inclusion criteria: FTSE Environmental Opportunities All-Share, 100 & Environmental sector Indices.

Excluding criteria

n.s.

Positive criteria

- Alternative Energy & Energy Efficiency e.g. wind turbine and solar manufacturers;
- Water Technologies & Pollution Control e.g. filtration, purification & separation technology companies;
- Waste Technologies & Resource Management e.g. production using recycled material

Research done by

Impax Asset Management

 
Funds based on the index n.s.
Finance-/tech. - support by Thomson Financial Datastream
Benchmark n.s.
Company profiles n.s.
 

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