The UK Environment Agency has allocated 20% of its £100m (€156m) pension fund to an 'eco-enhanced' index fund managed by State Street Global Advisors (SSgA).

The fund will track the FTSE 350 with a tracking error of 1.5% and will use ratings compiled by Innovest Strategic Value Advisors, the socially responsible investment (SRI) research and advisory firm. The ratings are based on the environmental performance of the companies in the index.