There are now three new indices in Canada focusing on climate change. We are increasingly seeing how concerns about environmental impacts are working their way into the mainstream investment community. The three new indexes were launched by S&P, Dow Jones Indices and Toronto Stock Exchange. All three are derivatives of the S&P/TSX 60, Canada’s leading equity benchmark.
These new indexes will make it easier for to avoid environmentally harmful investments while capitalizing on the growth of climate change oriented activities. They are the S&P/TSX 60 Carbon Efficient Index, S&P/TSX 60 Carbon Efficient Select Index and S&P/TSX 60 Fossil Fuel Free Index.
The S&P/TSX 60 Carbon Efficient Index measures company performance in terms of carbon emissions as assessed by Trucost Plc. The S&P/TSX 60 Carbon Efficient Select Index excludes companies with the largest relative carbon footprint.
The S&P/TSX 60 Fossil Fuel Free Index measures the performance of companies that do not own oil, gas or coal reserves. Companies in this index were vetted by RobecoSAM.
“As awareness of the effect of carbon emissions continues to grow, we believe investors will value these index offerings,” said Eric Sinclair, President, TMX Datalinx and Group Head of Information Services, TMX Group.
“With an increasing number of Canadian investors basing their investment decisions on how companies manage environmental issues, this S&P/TSX index series will provide an important and relevant benchmark within this space,” said Julia Kochetygova, Head of Sustainability Indices at S&P Dow Jones Indices.
These three indices are Canadian versions of the S&P Global 1200 Carbon Efficient Index Series, S&P Global 1200 Carbon Efficient Select Index Series and S&P Global 1200 Fossil Fuel Free Index Series, launched by S&P Dow Jones Indices. These three index series are derived from the constituents of the S&P Global 1200.
For more information, including the complete methodologies click here.
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