Bloomberg and Goldman Sachs Asset Management have launched the Bloomberg Goldman Sachs Global Clean Energy Index, a modified free float-adjusted market capitalisation weighted benchmark king the performance of over 175 global equities with significant business exposure to the clean energy sector.
The index was developed using insights from Bloomberg’s strategic research service BloombergNEF (BNEF), which focuses on global commodity markets and disruptive technologies driving the transition to a low-carbon economy.
Starting with the broader Bloomberg World Index, BNEF analysts selected securities based on estimates regarding their clean energy exposure.
“Bloomberg and Goldman Sachs Asset Management are offering the market a new standard for clean energy indices,” said Dave Gedeon, Global Head of Equity and Strategy Indices at Bloomberg.
He added, “With increased recognition of the significant global investments necessary for de-carbonization coupled with declining renewable energy costs and ever-increasing technologies for renewable energy, our launch of a Clean Energy Index is particularly timely, and we look forward to offering this solution to the climate-focused investing community.”
Kyri Loupis, Head of Energy Infrastructure & Renewables at Goldman Sachs Asset Management, noted, “Mainstream investors have an important role to play in financing the clean energy transition, especially as the battle against climate change intensifies.
With new technologies and government policies emerging, however, the energy transition is rapidly evolving and requires a dynamic investment approach. As such, we are excited about leveraging BloombergNEF’s real-time energy insights and proprietary datasets to help investors reallocate capital to align with their long-term climate goals.”
The sectors defined as having an upside exposure to clean energy for the index universe include wind, energy storage, clean power, networks, digitalisation, bioenergy, solar and hydrogen.
The index will be rebalanced on a quarterly basis reflecting the evolving energy transition, resulting in lower volatility.
©Markets Media Europe 2021