August 18, 2009
DiNapoli to Make Green Investments Through FTSE, HSBC
Allocates $200 Million in Clean Tech, Climate Change Solution Indexes
The New York State Common Retirement Fund (Fund) has selected the FTSE Environmental Technology 50 and the HSBC Global Climate Change Index to invest $200 million of assets under the Fund’s Green Strategic Investment Program (GSIP), New York State Comptroller Thomas P. DiNapoli announced today.
“FTSE and HSBC will help the Fund take its indexed equity investments into a promising market sector. This move should help deliver strong risk-adjusted returns to the Fund while providing capital to environmentally sustainable companies that are providing solutions to climate change,” DiNapoli said. “After
FTSE’s Director of Responsible Investment Will Oulton said: “Climate change is a driving factor in the social, political and economic shift towards a low carbon world. As this shift occurs, investment in environmental markets is becoming an increasingly important part of institutional portfolios. FTSE is pleased to offer a comprehensive toolset with which to measure these markets, and that the New York State Common Retirement Fund has selected the FTSE ET50 index for its allocation to green investment.”
Joaquim de Lima, Global Head of Equity Quantitative Research at HSBC, said: “We are very pleased to be working with the New York State Common Retirement Fund’s investment team who are at the forefront of addressing the challenges of climate change. Climate change is set to be one of the defining investment themes of the future and, having identified this macro challenge early on, the Fund will be positioned to drive the climate change agenda.”
DiNapoli created GSIP last year as a vehicle for the Fund to increase investments in environmentally focused strategies by $500 million over three years. The Fund will internally manage investments in companies included in the FTSE and HSBC indexes.
The HSBC Global Climate Change Benchmark Index was launched in September 2007 and reflected the quantitative performance of 300 of the largest and most liquid companies best placed to profit from the opportunities presented by a changing climate. In less than two years, this number has increased to 377 as companies grow in their commitment to tackling climate change.
The FTSE index tracks the performance of the 50 largest pure-play environmental technology companies globally. FTSE defines pure-play companies as those who derive at least 50% of their core business from the development and deployment of environmental technologies, including renewable and alternative energy, energy efficiency, water technology, and waste and pollution control.