Plans have been announced for the creation of the first environmental index fund for socially responsible investors in Japan.
The Chikyu Ondanka Boushi Kanrenkabu Fund will be run by Tokyo-based
Shinko Investment Trust Management and will be indexed to the KLD
Global Climate 100 Index, a global index focused on companies that work
on solutions to climate change.
The new fund – nicknamed Chikyuryoku (and whose full Japanese name is
translated as Global Warming Prevention Equity Fund), aims to maximize
investor exposure to global companies providing renewable energy such
as solar and wind, fuels such as natural gas and hydrogen, and new
technologies that help reduce emissions of greenhouse gases. The
International Energy Agency estimates that $10 trillion will be
invested in such energy systems in the next three decades to meet
growing global demand.
Peter Kinder, president of KLD, said: ‘While these companies alone
won’t solve global warming, the Index focuses investors’ attention on
where the possibilities lie.’
The initial subscription period for the fund begins on 5 June and the launch date is scheduled for 30 June 30.
