FTSE Group, BlackRock and The Natural Resources Defense Council on Tuesday launched the first equity global index series that will exclude companies that own or extract carbon-based fossil fuel reserves, said Kevin Bourne, managing director at FTSE in an e-mailed response to questions.
Mr. Bourne stated the group created the indexes in response to customer demand.
“Over time, we would expect other firms, including ETF issuers, to launch products that will track the index,” he wrote.
Natural Resources Defense Council is providing a seed investment. BlackRock expects to create an investment strategy that tracks the index.
A number of institutional investors have adopted policies to exclude companies that own or extract fossil fuels.
