FTSE Russell Launches All-World ex Coal Index Series

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The global index provider FTSE Russell has launched a new entry in the FTSE All-World ex Fossil Fuels Index Series — the new FTSE All-World ex Coal Index Series.

The new benchmark index will feature only companies that are not known to have exposure to coal energy, or companies with links to proved or probable coal reserves. In other words, the index will omit those that have definite links to either. The index is intended as a means of helping investors limit their portfolio’s exposure to fossil fuels (coal energy in particular here) if they so choose.

FTSE russell

Here are some further details on methodology via the recent press release:

The methodology behind the indexes is based on the exclusion of companies whose principal business activity is either Coal Mining or General Mining as identified by the Industry Classification Benchmark (ICB). In addition, revenues must arise from various forms of Coal Mining as stated by the Standard Industrial Classification (SIC) System or based on the company’s most recent published Annual Report and Accounts. This exclusion methodology is designed to be transparent, easy to understand, quantifiable and repeatable across FTSE’s Global Equity Index Series (FTSE GEIS), which covers approximately 7,400 companies that represent almost 98% of global market capitalization.

Kevin Bourne, Managing Director, Database Services, FTSE Russell, commented: “This winter, senior politicians and businessmen will attend the 2015 UN Climate Change Conference in Paris to discuss what is widely seen as one of the most important investment issues of our generation. As a leading global index provider, FTSE Russell recognizes the significance of this debate, and has been at the forefront of developing benchmarks to assist market participants to manage their fossil fuel exposure. We will continue to innovate across the sector and support our customers’ requirements as they increasingly seek to define, measure and model the industrial transition to a Low Carbon or ‘Green’ Economy’.”

The new index builds upon FTSE’s launch of the FTSE All-World ex Fossil Fuels Index Series last year, and is part of a broader growing effort.

More information can be found on the new index here: FTSE All-World ex Coal Index Series

Image Credit: FTSE Russell


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James Ayre

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.

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