World Bank launches eco-friendly stock index

Updated at: 1231 PST, Friday, December 11, 2009

NEW YORK: The private sector arm of the World Bank launched the first ever eco-friendly stock market index that allows investors to track the carbon efficiency of companies doing business in emerging economies.In partnership with the giant financial services corporation Standard and Poor’s (S&P), the International Finance Corporation (IFC) established the S&P/IFC Investable Emerging Markets Index expecting it to mobilize more than $1 billion for carbon-efficient companies over the next three years.The pioneering index is meant to encourage carbon-based competition among emerging-market businesses, give carbon-efficient companies access to long-term investors and result in lower carbon emissions in developing countries, as well as reducing the carbon footprint of investors’ portfolios.