(EnergyAsia, August 4, Monday) –– Boston, Massachusetts-based KLD Research & Analytics Inc has marked the third anniversary of its Global Climate 100SM Index (GC100) – the first global index focused on solutions to climate change.
The firm said the fund has returned 53% (15.24% annualised) from its launch on July 1, 2005 through June 30, 2008. The index holds a diversified group of companies that are leaders in renewable energy, clean technology, energy efficiency and future fuels.
The GC100 includes a mix of 100 global companies that will provide near-term solutions to global warming while offsetting the longer-term impacts of climate change.
“Over the past three years, we’ve witnessed formation of a scientific, public policy and business consensus on the need to combat global climate change. If our economy must depend less on fossil fuels, then our portfolios must do the same,” said Thomas Kuh, managing director of KLD Indexes.
“Renewable energy is part of the answer, but energy conservation and pollution prevention are also essential. The GC100 looks for opportunities on all these fronts.”
The GC100 includes companies who make promising energy-saving products, such as smart electric meters and superconductors, as well as alternative energy stocks.
The GC100 holds leading companies in the climate solutions value chain, including small, pure-play firms like Novozymes and GS Yuasa as well as large diversified companies like Siemens and General Electric. The Index is equal weighted to ensure that investors benefit from these innovative companies regardless of their size.
“As the following chart shows, the holdings in the GC100 are positioned to profit from the trend toward de-carbonisation of the economy in response to climate change,” said GC100 Index manager Jed Sturman.
“As the price of oil has soared, GC100 constituent stocks like Vestas Wind Systems of Denmark and SolarWorld of Germany have shown strong returns. Smaller firms such as Conergy, Solon, and American Superconductor have also performed well.”
KLD created the GC100 in partnership with the Global Energy Network Institute, a research organisation that seeks to build connections among the world’s energy systems, with an emphasis on renewable energy resources.
“In the energy sector, we get what we invest in. If we want a cleaner, more sustainable world in the future, we need to invest in climate solutions today,” said Peter Meisen of GENI.