CalSTRS Chief to Chair FTSE’s Environmental Markets Committee
Jack Ehnes succeeds former CalEPA Secretary Winston Hickox after five years as chairman.
WEST SACRAMENTO, CA – FTSE Group (“FTSE”), a leading global index provider and a pioneer in responsible investment, announced that Jack Ehnes, CEO of CalSTRS (California State Teachers’ Retirement System) will serve as the new chairman of the FTSE Environmental Markets Committee.
The announcement comes on the fifth anniversary of FTSE’s Environmental Market Index Series and its partnership with Impax Asset Management, the environmental markets specialist with which FTSE worked to develop the market-leading classification system underpinning the Series.
The FTSE Environmental Markets Committee is the independent advisory body responsible for setting the rules governing the classification system and the two sets of indices based on it – the FTSE Environmental Technology and FTSE Environmental Opportunities indices. The Environmental Markets Classification System (EMCS) and the FTSE indices are now used by investment clients across Europe, Asia and the US for ETFs, tracker funds, structured products and performance benchmarks.
Jack Ehnes has led CalSTRS, the largest educator-only pension fund in the world, for more than 10 years.
“I’m honored to become Chairman of the Committee and to be contributing to the next chapter in the development of market standards,” he said. “The world faces unprecedented environmental challenges and companies providing products that provide solutions to these challenges are likely to be an important part of the future global economy. Defining these new emerging sectors is crucial to allow investors to model, understand and allocate capital.”
Ehnes is also a member of the board of Ceres, a network of U.S. business executives that addresses corporate sustainability challenges and promotes improved transparency and disclosure of environmental risk.
Jack Ehnes replaces Winston Hickox, who is stepping down after five years chairing the Environmental Markets Committee, which is comprised of investment industry practitioners. Winston, a former Secretary of the State of California’s Environmental Protection Agency (Cal/EPA), brought a wide range of environmental policy, regulation and environmental investing experience to the committee. He worked with CalPERS, the California Public Employee Retirement System, to design and implement its environmental investment mandates and served as chair of the California Market Advisory Committee.
“It has been a pleasure working alongside the FTSE Environmental Markets Committee and Impax Asset Management” Winston said. “We have come a long way over the last five years despite much market volatility. I’m delighted that Jack has accepted our invitation to take the reins. He has the big picture vision and the experience that we need to ensure that this work supports asset owners in accessing environmental markets, such as those companies delivering energy efficiency, water, waste and pollution control technologies.”
Since the launch of EMCS and the indices in 2007, the composition of the indices has changed significantly, with sectors such as energy efficiency and water technology growing in significance at the expense of the renewable energy sector. Renewable and alternative energy fell from 56 percent to 15 percent of the FTSE Environmental Technology 50 Index total market capitalization, while energy efficiency rose from 10 percent to 26 percent, and water technology and infrastructure rose from 10 percent to 21 percent respectively.
The California State Teachers’ Retirement System, with a portfolio valued at $154.8 billion as of October 31, 2012, administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans, as well as disability and survivor benefits. CalSTRS serves California’s 856,000 public school educators and their families from the state’s 1,600 school districts, county offices of education and community college districts.
Notes to Editors
Background on FTSE Environmental Markets
The FTSE Environmental Markets indices are based on the Environmental Markets Classification System (EMCS) and form the basis of investable products and benchmarks which invest in companies that deliver solutions to environmental challenges. There are two series of indices – Environmental Technology (with a minimum of 50 percent of their business qualifying) and Environmental Opportunities (with a minimum of 20 percent of their business qualifying). Eligible business is measured as combination of percentage of total revenues, capital capitalization and EBITDA. The indices enable clear identification and measurement of investment opportunities in environmental markets and make it possible to compare across sectors and countries. EMCS covers six Sectors of environmental business activity, which break down into a further 26 Subsectors. The six Sectors are: Renewable and Alternative energy; Energy Efficiency; Water Infrastructure and Technologies; Pollution Control; Waste Management and Technologies; and Environmental Support Services.
ABOUT FTSE GROUP
FTSE Group (FTSE) is a world leader in the provision of global index and analytical solutions. FTSE calculates indices across a wide range of asset classes, on both a standard and custom basis. FTSE indices are used extensively by investors worldwide for investment analysis, performance measurement, asset allocation, portfolio hedging and the creation of index derivatives, funds, Exchange Traded Funds (ETFs), and other structured products.
FTSE has built an enviable reputation for the reliability and accuracy of our indices and related data services. FTSE has a long tradition of listening and responding to the market so that it is at the forefront of developing new approaches to index design, many of which are now accepted as the market standard. FTSE prides itself in continuing to invest significant resources in researching and developing new index solutions.
The foundation for FTSE’s global, regional, country and sector indices is the FTSE global equity universe, which covers over 7,400 securities in 47 different countries and captures 98 percent of the world’s investable market capitalization. FTSE’s flagship global benchmark, the FTSE All-World Index, is used by investors worldwide to structure and benchmark their international equity portfolios.
Exchanges around the world have chosen FTSE to calculate their domestic indices. These include ATHEX, Bolsas y MercadosEspañoles, BorsaItaliana, Bursa Malaysia, Casablanca SE, Cyprus Stock Exchange, IDX, JSE, LSE, NASDAQ Dubai, NYSE Euronext, PSE, SGX, Stock Exchange of Thailand and TWSE. In addition, FTSE works with a variety of companies and associations to deliver innovative index solutions which provide the market with fresh opportunities.
FTSE is an independent company owned by London Stock Exchange Group.
For more information visit www.ftse.com or please contact:
Emily Mok, Tel: +852 2164 3333 or email firstname.lastname@example.org
Annie Evangeli Tel: +44 20 7866 1821 or email email@example.com
Laurel Manning, Tel: +1 212-314-1142 or email firstname.lastname@example.org
Amy Fong, Tel: +61 2 92 93 2867 or email email@example.com
Stewart Ueno/Kentaro Kamei, Tel: +81 3 3581 3444 or email firstname.lastname@example.org
If you are not a member of the press, please contact your local Client Services team
ABOUT IMPAX ASSET MANAGEMENT
Founded in 1998, Impax Asset Management (“Impax”) was one of the world’s first managers dedicated to exploiting the investment opportunities created by the demand for cleaner, more efficient products and services through listed and private equity strategies.
Impax now manages £1.8 bn* for institutional and high net worth investors globally, and is committed to providing strong long-term risk-adjusted returns. The company’s team of 28 investment professionals has been assembled over 14 years.
Impax’s listed equity funds seek out mispriced companies that are set to benefit from the long-term trends of changing demographics, rising consumption, limited natural resources and urbanization. Investment is focused on the alternative energy, water, waste, food, agriculture and related markets. Impax’ private equity infrastructure funds invest in power generation assets in the renewable energy sector.
* at 31 October 2012
For more information visit www.impaxam.com
Anne Gilding, Tel: + 44 20 7432 2602 or email email@example.com