Index compares share price with emissions
An environmental index which correlates company share prices
to its greenhouse gas emissions has been launched with the aim of bringing
transparency to the field and providing a window into any correlation between
the two.
Environmental
Investment Organisation, a think-tank, hopes its Environmental Tracking
Index will have a direct impact on share price when stakeholders can view a
company’s level of carbon output against its financial performance in the
markets.
“If a significant amount of money is invested in this way, then, in future, a
company will be forced to take account of its emissions in order to avoid
damaging its share price,” says Michael Gill, creator of the concept. “The
question is whether the world’s leading investment institutions live up to their
public pledges and environmental responsibilities by adopting it.”
Rachael Singh writes our sustainability page