FTSE Environmental Markets Classification

FTSE Environmental Markets Index Series classifies the environmental markets universe into over 20 sub-sectors*. These provide a globally recognised environmental market classification system and are detailed below.

There are now 18 indices, developed in partnership with FTSE and overseen by the independent FTSE Environmental Markets Advisory Committee since 2007.


*Most sub-sectors have an additional 'diversified' category not shown for the sake of clarity.

 

ENERGYCompanies that provide products or services along the alternative energy value chain and those enabling more efficient methods of energy usage.

Companies that provide products and services along the renewable and alternative energy value chain.

Companies that design, develop, manufacture, distribute or install wind turbine equipment and components, (including bearings, gearboxes, blades, and towers) and companies that supply specialist materials into the wind value chain.

 

Companies that design, develop, manufacture, distribute or install solar photovoltaic or solar thermal  equipment and components, (including wafers, cells, and modules); and companies that supply specialist materials into the solar value-chain.

 

Companies that design, develop, manufacture, distribute and/or install other renewable energy technologies (other than wind and solar power), including equipment for hydro, wave, tidal, fuel-cell, and geothermal energy generation.

 

Companies involved in the development and operation of renewable energy power generation including the provision of power from sources such as wind, solar, geothermal, hydro, biomass, landfill gas and waste incineration.

 

Companies involved in the development, processing, production and distribution of bio-derived fuels for transport, head and electrical power generation. Bio-derived fuels include bioethanol, biodiesel, and 'advanced' biofuels such as cellulosic ethanol.

 

Companies that provide products and services enabling more efficient methods of energy usage.

Companies that design, develop, manufacture, distribute or install equipment and services which enhance the efficiency of operation of the electrical power network. This includes advanced meters, distributed generation, "smart grid" technologies, high efficiency power generation, transmission and distribution technologies, and efficient backup power.

 

Companies that design, develop, manufacture, distribute or install energy efficient products and services for use in varied industrial markets. These include products and core components which improve energy profiles, and products or systems which reduce energy usage within processes.

 

Companies that design, develop, manufacture, distribute or install energy efficient products and services for use in residential, commercial and municipal buildings. Products include integrated buildings control systems, insulation materials, energy efficient lighting, efficient heating, ventilation and air-conditioning equipment.

 

Companies that design, develop, manufacture, distribute or apply technology to deliver improved efficiency in the transport sector (including automotive, heavy duty, rail and aerospace). This includes higher efficiency conventional engine and powertrain technologies, and new vehicle technology (such as natural gas engines, hybrids and electric vehicles, including specialist batteries).

 

Companies that design, develop, manufacture, distribute or install energy efficient consumer products and services. This includes components for consumer appliances, such as high-efficiency power electronics, LEDs and control systems.

 

WATERCompanies that provide or operate technologies, infrastructure and services for the supply, management and treatment of water, and technologies that reduce and monitor the contamination of air and soil.

Companies that provide or operate technologies, infrastructure and services for the supply, management and treatment of water for industrial, residential, utility and agricultural users.

Companies that supply products (including specialty pipes, pumps, valves, actuators, hydrants and meters) and services that enhance water infrastructure systems. This includes companies engaged in the development and construction of water infrastructure or coastal defence projects.

 

Companies that design, develop, manufacture, distribute and/or install technologies or facilities for the separation and purification of water to meet environmental standards. This includes membranes, ultra-violet, desalination, filtration, ion exchange, and biological treatment.

 

Companies that operate water treatment and supply infrastructure, providing potable water or wastewater and sewage services.

 

Companies that provide technologies to reduce and monitor the contamination of air and soil to address global, regional and local environmental problems.

Companies that design, develop, manufacture, distribute or install equipment and services for reduction, prevention or clean-up of air or soil pollution. Pollutants include sulphur dioxide, nitrous oxide, mercury particulates, carbon monoxide and carbon dioxide. Principal areas are the industrial and power generation sectors (such as smoke stack scrubbing technologies), and the transportation sector (such as particulate filters and catalytic converters). This also includes companies facilitating the substitution of more polluting fuels by cleaner burning fuels in areas of chronic air pollution.

 

Companies that provide environmental testing, sensing, measuring and monitoring technologies and services, such as chromatography and mass spectrometry.

 

WASTECompanies that provide or operate technologies, systems and services for waste management, reuse and recycling, and those that provide environmental support services.

Companies that provide and/or operate technologies, systems and services for waste management, reuse and recycling.

Companies that design, develop, manufacture, distribute and/or install waste technology equipment and system services that create value from the waste stream. Equipment includes sorters, reverse-vending machines, composters, anaerobic digesters, waste-to-energy systems, collection, registration and logistics systems and other materials processors.

 

Companies that are involved in the processing of waste to derive value. Operations include recycling (in particular metals, plastics, oils, paper and aggregates), composting, mechanical biological treatment, and energy recovery.

 

Companies that are involved in the processing and treatment of hazardous waste such as clinical waste, batteries, end of life vehicles, electronic equipment (e-waste) and radioactive waste.

 

Companies that are involved in general residential and commercial waste management operations, typically including collection, processing and disposal (including landfill).

 

Companies that provide environmental support services through consultancy, or trading services in environmental assets and securities. Furthermore, diversified environmental companies are also included in this sector.

Companies that derive investment returns from sourcing, creating and trading carbon credits and other environmental assets such as sulphur dioxide pollution permits.

 

Companies that provide advice and/or support regarding environmental issues and strategies, and in the development of projects and infrastructure (e.g. the building of renewable energy projects). Companies that manage and certify environmental performance and planning issues for new and existing construction, and engineering projects are included.