Emissions and Sustainability Indexes Launched

Emissions and Sustainability Indexes Launched

Dow Jones Indexes launched a series of indexes this week that will give investors exposure to carbon trading and sustainable companies.

First, Dow Jones joined the Chicago Climate Exchange to introduce two global emissions indexes. One, the Dow Jones/CCX European Carbon Index is based on European Union Allowances (EUA) futures issued under the European Union Emissions Trading Scheme (EU ETS). The EU ETS is the biggest cap-and-trade in the world put in place to reduce greenhouse gases.

The second, the Certified Emissions Reductions (CER) Index, will track the discounted value of CERs, which are offset allowances issued by the U.N. under the Kyoto Clean Development Mechanism. The offsets are generated from projects in developing countries.

Dow Jones also teamed with investment specialist SAM to unveil four blue-chip indexes that track corporate sustainability leaders. SAM determines the weight of each index based on sustainability scores, rather than the common market cap weightings.

"Over recent years, we have seen increasing interest in the Dow Jones STOCXX Sustainability indexes and are convinced that the demand for transparent indexes that measure sustainable companies will grow further in the future," John Prestbo, executive director and editor of Dow Jones Indexes, said in a statement.

The new indexes are: Dow Jones Sustainability World 80 Index, Dow Jones Sustainability World ex U.S. Index, Dow Jones Sustainability North America 40 Index, and Dow Jones Sustainability United States 40 Index.