Merrill Lynch and Trucost launch Europe carbon index

Merrill Lynch and Trucost have launched a new, carbon index based on best in class carbon footprint companies. The Merrill Lynch Carbon Leaders Europe Index (MLCLE) ranks companies by their carbon footprint and valuation, providing investors with exposure on a sector neutral basis. The index is not a ‘clean tech fund’ or similar product.

"The ML Carbon Leaders Europe Index offers investors exposure to a high quality, low carbon footprint basket of stocks using a valuation framework that has been shown to outperform during all stages of the economic cycle," says Zoe Knight, senior director of Socially Responsible Investing at Merrill Lynch.

Despite the absence of consistent or comprehensive environmental data disclosure by companies, Trucost maintains its comprehensive coverage and sophisticated modelling processes ensure that any