Investors who want to avoid buying shares in oil, coal and gas will be able to pick from a new list put together by FTSE and investment giant Blackrock.
This week they announced plans for a “fossil fuel free” index, excluding companies with links to exploring for or owning fossil fuels.
Companies will be excluded if they are involved in exploration and production, oil and gas, coal mining and either have revenues arising from fossil fuel extraction and production or have proved and probable reserves in coal, oil or gas in their annual report and accounts.
The boss of FTSE – a list of all the companies on the London Stock Exchange – suggested there is growing demand for “clean” stocks.
Mark Makepeace, CEO of FTSE Group said: “We are increasingly seeing demand from our clients for indices that reflect their overall business culture and values. Innovation is at the core of all our products and we are pleased to develop this global benchmark to implement total exclusion of companies linked to this theme.”
Seed investment for project has come from the Natural Resources Defense Council (NRDC), an American not-for-profit.
Frances Beinecke, President of the NRDC said: “This initiative is about creating the kind of world we want to leave for the next generation.”