Italian bank comes up with water indexMay 2009
An Italian investment bank is to create an index based on water-related risk exposure.
EPCI, a rating and index company that is part of Mittel bank, has designed the Global Blue Gold Equity Index to give investors equity exposure to companies active in water-related businesses such as water treatment and infrastructure.
Initially the index will consist of 30 companies. The screening for inclusion involves minimum environmental performances and an endorsement of the United Nations CEO Water Mandate, which commits company chief executives to manage water resources more effectively.
The index reflects a wider interest in both water and environmental, social and governance (ESG) indices in socially responsible investment.
Guerino Guarnieri, an ECPI adviser, said the new index was partly a reflection of the bank’s interest in the need for better water management, but added: ‘It’s also a tool for smart global investors who need relevant indices which may be used for benchmarking and as the basis for index-linked products.’
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