ABN Amro launches climate change index

The index includes companies involved in renewable energy such as hydroelectric power, geothermal energy and solar power, which are all expected to profit from a shift away from fossil fuels. It also includes companies involved in water and waste management, and producers of platinum and palladium, which are used in catalytic converters.

Catalytic converters break down greenhouse gases in vehicle exhaust, such as methane and hydrocarbons, into carbon dioxide, which is a less potent greenhouse gas.

The bank already produces various more specific environmental indexes - on clean water, biofuels, renewable energy and other topics - and offers share baskets and total return index certificates based on them.

It has not so far announced any products based on the Climate Change & Environment index, but potential applications include tracking certificates, structured notes or a collateralised debt obligation based the companies in the index, ABN Amro said.

The index consists of 30 stocks selected by Standard & Poor's in the mining (10%), water and waste management (45%) and renewable energy (45%) sectors. It will be rebalanced every six months and is listed on Bloomberg.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here