Simplicity is the key...
The ET Index System is designed to be simple.
It only requires two pieces of information from the world's largest 1100 companies to work.
A) The size of their absolute GHG emissions according to the GHG Protocol.
B) A statement that proves the information has been externally verified.
On the basis of those two pieces of information, we can rank the largest companies in the world according to the ET Carbon Ranking system.
We then use that ranking to launch the ET Index Series, which re-weights companies according to their position in the ET Carbon Ranking, and that can then be followed on a large scale by index funds.
Index Funds are the simplest possible form of stock market investment. They are widely used by Pension Funds, Insurance Companies, Sovereign Wealth Funds; in fact any investor looking for a sensible way to invest their money.
Once enough investors track the ET Indexes, companies will start experiencing a pressure on their share price to reduce emissions.
The effect is dynamic and all encompassing.
For the scheme to have a realistic chance of success, we are looking to persuade the investment system to commit 1% of stock market assets to tracking the indexes.
To read more about the system please see our About section.
Please see the video below for a short visual explanation of the concept:
Some browsers may experience difficulties viewing this video, if that is the case please click here to view it directly on YouTube.