Maravi

World Bank launches initiative to promote ‘green’ companies

World Bank launches initiative to promote ‘green’ companies
By Kabanda Chulu
Tue 19 Jan. 2010, 04:01 CAT

INTERNATIONAL Finance Corporation (IFC) of the World Bank and Standard & Poors’ have launched a carbon efficient index for emerging markets aimed at mobilising more than US$1 billion for carbon efficient companies over the next three years.

The innovative carbon efficient index would encourage carbon-based competition among emerging-market companies, give carbon-efficient companies access to long-term investors and should lead to important reductions in carbon emissions in developing countries.

During the launch in Denmark over the weekend, IFC vice-president for business advisory services Rachel Kyte stated that the launch of the index would help to ensure that carbon efficiency was rewarded in the market.

“With growing pressure on investors to diversify and maintain returns by increasing exposure to emerging markets, and with more and more investors keen to demonstrate a preference for sustainability, including carbon efficient companies, IFC hopes that the launch of this index will help ensure that carbon efficiency is rewarded in the market and that best-in-class companies gain better access to capital,” stated Kyte.

And S&P chairman of the index committee David Blitzer stated that investors were increasingly viewing emerging markets as essential to a well-designed global equity portfolio.

“With the growing understanding of the role of carbon emissions in climate change, the S&P/IFC Carbon Efficient Index will be a powerful tool for investors seeking to reduce their carbon exposure in a broad portfolio covering emerging markets,” stated Blitzer.

The index was developed by S&P using carbon data provided by Trucost. It will allow investors to closely track the performance of the S&P/IFC Investable Emerging Markets Index, a leading emerging-market benchmark.
Investors will gain exposure to emerging markets and benefit from local rates-of-return while reducing the carbon footprint of their portfolios by 24 per cent.

The initiative is the result of a pioneering collaboration that draws upon S&P’s experience in index construction, Trucost’s expertise in analysing and estimating carbon emissions, and the Carbon Disclosure Project’s leading engagement initiative to encourage public disclosure of carbon emissions.

Labels: ENERGY, GREEN REVOLUTION, World Bank

posted by MrK @ 6:32 PM