ET Low Carbon and Fossil Free Index Series

Why investors are using the ET Low Carbon and Fossil Free Index Series

The ET Low Carbon Index Series is underpinned by the ET Carbon Rankings, which score the world’s largest listed companies according to their carbon emissions. By linking an investable index to a public ranking of companies, Engaged Tracking offers investors a practical mechanism through which to incentivise and participate in global corporate carbon emission reductions.

  • Low-carbon index series designed to reduce investor exposure to carbon risk while driving a shift to the low-carbon economy.
  • Each index within the ET Low Carbon Index Series has outperformed its benchmark over the last 5 years and we expect this trend to continue.
  • Low-carbon index series available for tracking and benchmarking.
  • Custom index solutions including sector neutral weightings and any other client specific requirements available on request.
  • Global coverage covering approximately 85% of global market capitalisation.
  • Greenhouse Gas emissions analysis includes Scope 1, 2 and 3 emissions.
  • Active engagement with constituents companies to lower emissions comes as standard through the ET Carbon Ranking suite.
  • Low active return correlation with other indexes.

Index options available:

  • ET Low Carbon Tracker Index Series: 25% reduction in emissions versus the conventional index. Very low tracking error – suitable for pension funds and other tracking error constrained investors.
  • ET Low Carbon Benchmark Index Series: 50% reduction in emissions versus the conventional index. Low tracking error based on balance between carbon reduction and deviation from the conventional index.
  • ET Low Carbon Transition Index Series: 75% reduction in emissions versus conventional index. Medium tracking error – focused on carbon reduction.
  • ET Fossil Free Index Series: available in Tracker, Benchmark and Transition versions for each index. ET Fossil Free Indexes combine divestment with Engaged Tracking to further reduce carbon exposure across all companies once fossil-fuel stocks have been excluded. Fossil fuel stocks are defined as those in the Oil, Gas and Coal sectors in the Sustainable Industry Classification System™ (SICS®) from SASB®.
  • Custom strategies: read more about how we can tailor our services to meet your bespoke needs.

Contact us if you want to learn about how these services could benefit you and your clients.

ET Low Carbon & Fossil Free Index Series

ET Global 800 Index Series Factsheet thumbnail

ET Global 800 Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET Global 800 Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index.

ET Global 1600 Composite Index Series Factsheet thumbnail

ET Global 1600 Composite Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET Global 1600 Composite Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index. The ET Global 1600 Composite represents the largest 400 companies by free-float market capitalisation in each of the four regions: Europe, North America, Asia-Pacific and BRICS.

ET Global 2400 Composite Index Series Factsheet thumbnail

ET Global 2400 Composite Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET Global 2400 Composite Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index. The ET Global 2400 Composite represents the largest 600 companies by free-float market capitalisation in each of the four regions: Europe, North America, Asia-Pacific and BRICS.

ET Europe 300 Index Series Factsheet thumbnail

ET Europe 300 Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET Europe 300 Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index.

ET North America 300 Index Series Factsheet thumbnail

ET North America 300 Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET North America 300 Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index.

ET Asia Pacific 300 Index Series Factsheet thumbnail

ET Asia Pacific 300 Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET Asia Pacific 300 Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index.

ET BRICS 300 Index Series Factsheet thumbnail

ET BRICS 300 Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET BRICS 300 Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index.

ET UK 100 Index Series Factsheet thumbnail

ET UK 100 Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET UK 100 Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index.

ET US 500 Index Series Factsheet thumbnail

ET US 500 Index Series Factsheet

This factsheet demonstrates the investment characteristics of the ET US 500 Tracker, Benchmark and Transition Index Series as well as the Fossil Free version of each style. The Tracker, Benchmark and Transition styles offer varying degrees of carbon exposure reduction relative to the Conventional Market Cap index.