NZX launches carbon-efficient indices

NZX has teamed up with S&P Dow Jones Indices to launch New Zealand’s first carbon-efficient indices.

The move comes amid growing interest in addressing climate change among New Zealand and international institutional investors.

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

A statement from the NZX says that “The key objective behind the indices is to incentivise New Zealand companies to compare their carbon intensity to their industry group peers around the world.”

The indices will purely be weighted to reflect a company’s carbon intensity, and will not screen companies.