The Environmental Investment Organisation (EIO) is a not-for-profit research body set up to develop and advance investment solutions designed to address climate change.
Over the last 15 years it has developed and refined the Environmental Tracking (ET) concept into a market mechanism designed to drive the world's largest companies to reduce their greenhouse emissions.
Environmental Tracking combines two distinct features: The ET Carbon Rankings and ET Index Series.
- ET Carbon Rankings are a dynamic, public and transparent ranking system scoring the world’s largest listed companies according to their publicly disclosed greenhouse gas emissions data. The rankings are designed to provide each constituent company with an incentive to outperform its peers by lowering emissions each year.
- ET Index Series is an investment tool designed to meet the needs of the growing number of investors wishing to combine socially responsible and mainstream investment practices, whilst simultaneously driving emissions reductions through share price pressure. The Index Series, which is based on the ET Carbon Rankings, is designed to push up the cost of capital for high-carbon companies, whilst rewarding those with relatively lower emissions.
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In early 2014, the EIO was invited by the Climate KIC, the EU’s flagship climate innovation initiative, to develop and commercialise the Environmental Tracking concept. This lead to the creation of ET Index Ltd, a spin out company from the EIO tasked with fulfilling this objective.
From 2015 ET Index will host the ET Carbon Rankings and ET Index Series and will be responsible for promoting the Environmental Tracking mechanism amongst investors.