Bloomberg and Goldman Sachs Asset Management have joined forces to enter the highly competitive clean energy indexing space.
The Bloomberg Goldman Sachs Global Clean Energy index, with a ticker of ‘BGSCET’, will offer market-cap-weighted exposure to 175 global equities identified as having “significant” involvement in clean energy.
The joint effort uses insights provided by BloombergNEF analysts to select securities from the Bloomberg World index which are considered “active” and “impactful” in clean energy subsectors, including wind, energy storage, clean power, networks, digitalisation, bioenergy, solar and hydrogen.
In its statement, Bloomberg said the benchmark will rebalance quarterly to offer investors an industry exposure that evolves with the sector, with the hope this will also result in lower volatility.
Commenting on the launch, Dave Gedeon, global head of equity and strategy indices at Bloomberg, said: “With increased recognition of the significant global investments necessary for decarbonisation 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 and renewables at Goldman Sachs AM, added: “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.”
The arrival of BGSCET is the latest clean energy indexing development from a ‘big four’ provider since S&P Dow Jones Indices hosted its second round of consultations with the market over its S&P Global Clean Energy index.