NZ exchange & S&P launch carbon indices

New Zealand’s Exchange has launched the country’s first carbon efficient indices in partnership with S&P Dow Jones Indices.

The two new indices, the S&P/NZX 50 Carbon Efficient Index and the S&P/NZX 50 Portfolio Carbon Efficient Index use Trucost’s environmental data to weigh companies listed on the NZX according to their carbon intensity and sector impact.

The exchange says the aim of the indices is to incentivise New Zealand companies to compare their carbon intensity to their industry group peers around the world. The indices will be about 25% and 19% lighter on carbon emissions (carbon-dioxide equivalent: CO2-e) than their parent indices, respectively, while providing similar risk/return characteristics as the parent indices.