Sustainable Investment
Sustainable Resource
FTSE launches first ever fossil
fuel-free stock market index
First step towards a total exclusion model for fossil fuel-linked stocks
By Jack Allen
T
he FTSE has launched a
share index that excludes
companies linked to the
exploration, ownership or
extraction of fossil fuels.
The FTSE Developed ex Fossil
Fuels Index Series is a step towards
implementing a total exclusion
model for fossil fuel-linked stocks, so
excluded enterprises are removed
entirely from the Index Series.
BlackRock, the world’s largest
fund manager, intends to launch a
solution that tracks FTSE’s new
benchmark utilising seed capital
from Natural Resources Defense
Council (NRDC), a not-for profit
organisation with 1.4 million
members that works to protect
natural resources, public health and
environment. The Index Series has
been designed with the cooperation
of BlackRock and NRDC.
The methodology behind the
Index Series is based around three
key exclusion criteria and is
designed to be transparent, easy to
understand, quantifiable and
repeatable across FTSE’s Global
Equity Index Series (GEIS), which
covers approximately 7,400
comp