NYSE Euronext has completed the annual rebalance of the Low Carbon 100 Europe Index.
Effective for the open of 22 March 2010, 21 new constituents entered the index during this review, having the best in class carbon emission in their respective sectors.
Compared to the universe of the 300 largest European companies, the carbon emission of the Low Carbon 100 Europe Index constituents is 55 per cent lower on average.
Furthermore, as of 26 February 2010, the one year trailing performance of the Low Carbon 100 Europe Index was 35.76 per cent.
The Low Carbon 100 Europe Index is weighted by free-float market capitalization designed to measure the performance of the 100 largest European companies having the lowest carbon intensity in their respective sectors or homogeneous sub-sectors. The index is designed to offer sector neutrality using the selection universe as the starting sector weight.
“The Low Carbon 100 Europe Index is an integral part of NYSE Euronext’s commitment to socially responsible initiative,” says George Patterson, head of index design and licensing, global index group. “The index provides an opportunity for market participants to invest in companies that are leading the pack in terms of carbon efficiencies.”
The carbon footprints used for the selection of the eligible companies are estimated on the basis of data sourced from Trucost and Credit Agricole Cheuvreux.
The index is built and maintained in partnership with NGOs WWF, Agrisud and GoodPlanet.org, the Dauphine University in Paris and the Climate Mission of Caisse de Depot et Consignations.
In November 2008, BNP Paribas listed the EasyETF Low Carbon 100 Europe fund on NYSE Euronext Paris based on the index.