Australian investors can track firms’ eco-credentials

Investors seeking to back companies listed on the Australian Stock Exchange will now be able to follow firms best positioned to address climate change and other environmental concerns.

Financial analysts RepuTex have launched two environmental indices – one to track the companies best positioned to turn the problems of climate change into profit and another to track clean-tech companies selling products or services which will be part of the solution to future environmental concerns.

Although similar indices already exist in other parts of the world, this will be the first time that those investing in Australian companies will be able to build issues such as a carbon tax, water shortages and emissions targets into their investment decisions.

“Climate change poses risks and these must be addressed, but there are also major opportunities for growth,” said Hugh Grossman, head of research at RepuTex.

“The RepuTex Climate Change Growth Index will identify the companies best able to address the risks and convert the opportunities for growth into bottom-line profits.

“Climate change factors are already having an impact on company earnings. This impact is likely to grow as changes to the regulatory setting occur, such as the introduction of a carbon trading scheme.

“The index will enable investors to better anticipate these impacts on earnings and identify the best-performing companies in a climate change economy.

“The criteria to determine their capacity include effective strategy, innovation and management of carbon risk and exposure.”

The Clean Tech Index identifies the leading creators and manufacturers of clean technology equipment, products and services.

“New market forces will drive innovation and growth in the development of clean technologies,” Mr Grossman said.

“The RepuTex Clean Tech Index will identify companies that are best placed to compete and create wealth by reducing the global carbon footprint with specific products and services.

“These companies provide a direct technological solution to address climate change such as renewable energy, alternative fuels and efficiency gains.”

Sam Bond

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