Clean Energy Index Launched In Bloomberg, Goldman Sachs Collaboration

By Prasanna Singh/ Updated On Thu, Oct 28th, 2021

Highlights :

Clean Energy Index’s down to individual country level make a lot more sense as organisations look to invest responsibly.
One also expects these indices to help sift through organisations that present a green facade, without quite justifying the tag.

Clean Energy Index Launched In Bloomberg, Goldman Sachs Collaboration

Bloomberg and Goldman Sachs Asset Management have announced the launch of the Bloomberg Goldman Sachs Global Clean Energy Index. Designed with the energy expertise at both firms, the index is a modified free float-adjusted market capitalization weighted index tracking the performance of over 175 global equities with significant business exposure to the clean energy sector. Another Clean Energy Index, the S&P Dow Jones clean energy index already exists for mostly US investors.

The index was developed jointly by Bloomberg and Goldman Sachs Asset Management using a proprietary approach informed by insights from BloombergNEF (BNEF) analysts who identify companies that are active and impactful in their respective sectors and assess their exposure to clean energy. The universe of eligible securities for the index is developed by using a data driven approach to select securities from the broader Bloomberg World Index based on BNEF estimates around their exposure to clean energy.

According to Dave Gedeon, Global Head of Equity and Strategy Indices at Bloomberg, “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.”

The following sectors have been defined as having an upside exposure to clean energy for the index universe: wind, energy storage, clean power, networks, digitalization, bioenergy, solar and hydrogen. The index will be rebalanced on a quarterly basis, providing a highly dynamic offering that promises to evolve alongside the energy transition and result in lower volatility.

Details of the 175 global firms included as part of the index were not available at the time of filing this story. We shall update it as soon as we have the details.

The index will be trackable under the ticker name BGSCET.