Pushing Rope: :: The Sustainability Index ::

I have been following the rise of "green markets" for over a decade. When available, I try to stick my money into these investments rather than GE, etc.

So, this, although not all that surprising to me, is still amazing and about damned time: S&P jumps into the growing pool of sustainability indexes with the launch of its Global Thematic Index Series.

The S&P Global Clean Energy Index measures the performance of 30 companies that focus on clean energy production, clean energy technology, and energy equipment. The Clean Energy Index excludes companies for which their involvement with clean energy is a small part of their overall business. The US firm MEMC Electronic Materials, maker of silicon wafers for the semi-conductor industry, is the index’s largest constituent at 6.35%.

The S&P Global Water Index gauges 50 companies: 25 water utilities and infrastructure companies and 25 water equipment and material companies. French company Veolia Environment has the biggest share of this index at 9.57%.

The S&P Global Infrastructure Index measures the performance of 75 companies that run utilities, pipelines, airports, ports and highways. Twenty-two countries are counted in this index, with Spanish company Abertis Infraestructuras, S.A. being the largest constituent at 4.71%

S&P is not alone in tracking the markets of clean energy, water and infrastructure. Another global sustainability benchmark is the WilderHill Clean Energy Global Innovation Index, which was launched in 2006 by New Energy Finance in a partnership with Wildershares. The KLD Global Climate 100SM Index and Ardour Global Indices are other well-known indexes that follow clean energy. The Palisade Water Index, published by the American Stock Exchange, follows the global water industry. The Macquarie Global Infrastructure Index series, produced by FTSE, tracks companies in the infrastructure industry.

On a broader level, in 1999 the Dow Jones Sustainability Indexes became the first indexes to track the global performance of companies that focus on sustainability. These indexes look at companies across 58 sectors.

Alexander Barkawi, Managing Director, of the SAM Indexes told Socialfunds.com some of the reasons why he thinks there is a growth in renewable and sustainability indexes: "Investments into individual sustainability themes — particularly renewable energy and water — have indeed been on the rise over the last 12 months. The growing recognition among retail and institutional investors that the challenges of climate change and water scarcity also have significant impacts on their investments is obviously driving this
momentum."

"The global markets for solar, wind, biofuels, and fuel cells now exceed $50 billion annually," said Ron Pernick, Principal, Clean Edge Inc. and co-developer of the NASDAQ Clean Edge U.S. Index. "It's only natural that others are developing indexes to track this growing and dynamic sector. We're seeing compounded annual growth rates for a number of clean-energy sectors in the 30+ percent range," he explained. This index tracks pure-play clean energy companies.

I do believe I'll be putting my money into some of these again.