Previous Year Question

In the context of the Green Index, the International Finance Corporation (IFC), a member of the World Bank Group, collaborated with Standard & Poor's (S&P) to launch the S&P/IFCI Carbon Efficient Index in December 2009. Its objective was to encourage environmentally responsible investment based on the Carbon Efficiency of companies operating in Emerging Economies.

Carbon Efficiency relates a company's Carbon Emissions to its economic activities. The index aimed to help investors identify companies whose activities generated comparatively lower Carbon Emissions. This could enable investors to reduce the Carbon Footprint of their Investment Portfolios and encourage companies to reduce emissions.

IFC, Standard & Poor's, and Trucost played different roles in developing this index. IFC supported its development and promotion, S&P created the Index, and Trucost developed the methodology for measuring Carbon Efficiency. The project also received support from the Global Environment Facility (GEF) and the Government of the United Kingdom.