Alternative Investments/ESG: Bloomberg and Goldman Sachs Create New Clean Energy Index

https://dailyalts.com/wp-content/uploads/2021/10/sunset-gdea1897b9_640.jpg

The new index is suited for use with index-linked products such as ETFs.

Bloomberg and Goldman Sachs asset Management have launched a new clean energy index. The Bloomberg Goldman Sachs Global Clean Energy Index was jointly developed by Bloomberg and Goldman Sachs Asset Management and identifies companies that have a significant business exposure to the clean energy sector. (ETF Strategy)

Bloomberg Goldman Sachs Global Clean Energy Index

Drawn from the initial universe of the Bloomberg World Index, analysts at Bloomberg NEF used a data driven approach to further identify companies with respect to their exposure to clean energy.

The index is a modified free float-adjusted market capitalisation-weighted index tracking over 175 global stocks.

Sectors selected for their upside exposure to clean energy included wind, energy storage, clean power, networks, digitalisation, bioenergy, solar and hydrogen.

Because the index will be rebalanced quarterly, it would be highly representative of companies that are keeping pace with the energy transition.

Timely launch

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

Investors’ interest in ESG assets is borne out from the massive AUM of $ 4.5 billion garnered in net new assets by BlackRock‘s iShares Global Clean Energy ETF after clocking more than 12 months of positive inflows on the trot.

“Mainstream investors have an important role to play in financing the clean energy transition, especially as the battle against climate change intensifies,” said Kyri Loupis, Head of Energy Infrastructure & Renewables at Goldman Sachs Asset Management.”With new technologies and government policies emerging, however, the energy transition is rapidly evolving and requires a dynamic investment approach.”

According to a report by IMF, about $20 trillion in investment is needed over the next two decades for companies and countries to become carbon neutral by the middle of the century.

Related Story: Blackrock CEO Larry Fink Expects Climate Tech To Nurture The Next 1,000 Unicorns

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/06/justice-gba45571bc_640.jpg
Digital Assets: Grayscale Protests SEC Rejection Of Spot Bitcoin ETF, Files Suit Against Regulator
June 30, 2022     Digital Assets, Latest News, News, Regulations

Grayscale Investments, the largest digital asset manager globally, has filed a suit against the SEC for rejecting its application to convert the Grayscale Bitcoin Trust into a spot bitcoin ETF….

https://dailyalts.com/wp-content/uploads/2022/06/Twelve-sunglasses.png
Venture Capital/ESG: Twelve Raises $130M For World’s First Carbon Transformation Platform

Twelve has raised a $130 million Series B round to scale up its carbon transformation technology that converts captured CO2 into products traditionally made from fossil fuels. The firm’s technology…

https://dailyalts.com/wp-content/uploads/2022/06/amc-g39f4f8446_640-overlay.png
FinTech: Sam Bankman-Fried Of FTX Rejects Rumors He Is Acquiring Robinhood
June 30, 2022     Digital Assets, FinTech, News

FTX, the crypto platform owned by billionaire Sam Bankman-Fried, has scotched media reports that it was pursuing a deal to acquire commission-free trading app Robinhood (NASDAQ: HOOD). Bloomberg said Monday…

https://dailyalts.com/wp-content/uploads/2022/06/bitcoin-g9a41d1d1c_640-overlay.png
Alternative Investments/Digital: Amidst A Crypto Winter, 21Shares Launches The World’s Cheapest Physically Backed Bitcoin ETP

21Shares AG has launched a bitcoin ETP tailor-made for today’s crypto market, one that has been mauled by rampaging bears and gripped by a “crypto winter.” The 21Shares Bitcoin Core…