IFC is working with public pension funds and other long-term asset holders to promote investment in sustainable businesses in emerging markets. By making a small shift in the trillions of dollars managed by these funds it may be possible to generate a large source of additional resources for climate friendly investments. IFC is also working with asset managers to develop methodologies for measuring climate change as an element of business risk. IFC’s objective is to help direct capital flow from theses funds toward more climate-friendly investments by developing the necessary market infrastructure that supports the growth of sustainable investment. IFC is funding the development of enhanced stock market indices, market research and training; and by sharing IFC’s substantial experience in incorporating environmental and social issues when investing in emerging markets. Sustainable Investing Tools Carbon Efficiency Index: IFC is working to develop the first global emerging market carbon optimized index. The objective of this project is to provide an incentive for listed companies in emerging markets to disclose and improve their carbon efficiency by (a) stimulating investment flows from investors through the establishment of an investment index; and (b) engaging with companies directly on the basis of their relative weights in the index to fully exploit the impact of the index on corporate behavior. To date IFC has supported an extensive research process, has partnered with Standard and Poor’s, one of the leading global index providers, to establish the index and has been in discussion with some of the largest pension funds worldwide to gauge their appetite for such a product. IFC hopes that the index will be launched before the end of 2009 and an engagement program will be active in early 2010. Private Equity Toolkit: The objective of this project is to provide private equity fund managers with an online resource to help them incorporate environmental and social analysis into their investment process. This tool to help managers recognize potential risks and identify investment opportunities has been tested with sixteen private equity fund managers and will be launched in September 2009 to a selected group of fund managers before a wider release in 2010 Learn about IFC Sustainable Investing