A new index has been launched that will help measure divestment from fossil fuels. The FTSE Divest-Invest Developed 200 Index reduces exposure to companies with fossil fuel businesses, and enhances those with green revenues using data captured by FTSE Russell’s green revenue data model, LCE, which will launch publicly soon.

The Index is constructed from the largest 200 companies in the FTSE Developed All-Cap Index, and all constituents are eligible for inclusion, except for those in the sectors and sub-sectors of oil, gas, coal and mining. These excluded companies are replaced by green companies whose weights are based on their Low Carbon Economy Industrial Indicator (LOWCII) factor – the constituent’s ratio of its green revenues to its total revenues.

This data is sourced from FTSE Russell’s LCE model, which is designed to capture changes in the revenue mix of companies as they increasingly provide goods, products and services that enable the world to adapt to, mitigate or remediate the impacts of climate change, resource depletion or environmental erosion.

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