At last, a real index choice for financially conservative, pragmatic green investors - an environmentally-driven equity investment option that doesn't sacrifice returns or unwittingly add to investor risk.
Launched in 2000,the Eco*Index™ is the first environmental-performance-based "best in class" environmental leadership index in the United States, that includes representation of all major industry groups. The Eco*Index™ constituents are driven by the performance trends of companies relative to their industry peers – so that firms whose performance is improving in any industry can be included. With sole exception of the tobacco industry, all industries in the USA are represented in approximately their proportion in major indices of the economy.
To create the Eco*Index™, Light Green Advisors (LGA) evaluates and ranks the environmental performance trends of all companies in the S&P 500 and selects the most "green" companies in each industry segment. This "best-of-class" approach provides investors with a structured, broadly diversified index portfolio comprised of superior corporate environmental performers within every major industry, except tobacco products.
All major industry sectors are included in the Eco*Index™ portfolio:
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Aerospace & defense
Agribusiness
Automobiles
Beverages
Building materials & products
Computer/component distributors
Cruise lines
Electronics/semiconductors
Environmental Services
Filmed entertainment
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Forest Products
Homebuilders
Leisure Time
Metals & mining
Personal care products
Radio & television broadcasting
Restaurants
Supermarkets
Transportation
Utilities
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The Eco*Index™ portfolio is the first
environmental leadership index to include
representation from all major industry groups in the
S&P 500, except tobacco companies. Companies selected
for the index have the best environmental attributes
in their industry areas. This diversity is ultimately
reflected in returns to investors that track the S&P
500.
Because the fund contains more than 200
companies -- better than average companies from every industry
sector, the Eco*Index™ Select Portfolio is reliable
while still allowing investors to make an investment
decision that benefits companies that protect the
environment.
The Eco*Index™ portfolio uses an environmentally-based
scoring system to evaluate and rank the environmental
conduct of all companies in the S&P 500 index. LGA
E-scores are developed from third-party data provided
by the Environmental Protection Agency (EPA) and other
environmental organizations evaluating:
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Corporate expenses associated with compliance with US
environmental statutes
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Frequency and cost of corporate chemical and oil spills
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Toxic chemical releases to the environment and associated
expenses
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Superfund and hazardous waste cleanup liabilities
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Corporate waste generation costs and trends in costs
savings generated by waste reduction
Stocks within Standard & Poors-defined industry peer groups
are ranked by their E-score and companies that are better than their industry peers are included in
the Eco*Index™ portfolio. To assure the Eco*Index™ reflects the entire stock market, companies in industries with no relevant environmental performance data, e.g. financial services, are also included in the Eco*Index™ portfolio.
Institutional investors and pension plan sponsors interested in more information on making the Eco*Index™ available to their plan participants can contact LGA directly to discuss their requirements
Broker-dealers and other financial service firms
interested in arranging to offer Eco*Index™ portfolios
to their clients on different platforms can contact
LGA
here.
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