The FTSE environmentally friendly index is made up by 450 companies and will cover alternative energy and energy efficiency, water treatment and pollution control, and waste technologies and resource management.
Impax will research the companies from the FTSE global equity index series.
Companies must show a minimum of 20 per cent of their business comes from environmental markets or technologies.
Impax chief executive Ian Simm says: “Environmental investment is a compelling growth story now firmly in the mainstream. To reflect this, the sector needs a credible benchmark for investors. We are delighted to continue this partnership with FTSE, marrying their index expertise and our in-depth sector knowledge.”
FTSE head of responsible investment Will Qulton says: “”The index will appeal to institutional and retail investors who want to gain exposure to and track the performance of those companies who are transforming their businesses to increasingly source revenues from global environmental markets.”