Merrill debuts energy efficiency index

Merrill Lynch & Co. Inc. has introduced an index identifying industry sectors that should profit from the world’s drive to become more energy efficient.
The Merrill Lynch Energy Efficiency Index is comprised of 40 companies around the world that the company said should benefit from the continued push to reduce carbon dioxide and the cost of energy.
The index is divided into four components: integrated plays with a focus on the capital goods sector; fuel efficiency in the automotive industry; building insulation; and energy-efficient solutions, including products, applications and industrial processes.
The company identified the automotive industry, capital goods, semi-conductors and building materials as most exposed to this theme.
Merrill said that the automotive industry has shown attempts to achieve greater fuel efficiency; the manufacturing industry can improve due to a strong framework of regulation or incentives; the power semiconductor has a need to improve energy efficiency throughout the electricity supply chain from generation; and the building insulation sector is expected to be exposed to double-digit demand growth.
Merrill Lynch is based in New York.