HSBC launches climate change indexes

HSBC's Corporate, Investment Banking and Markets division (CIBM) has launched an index to track the stock market performance of companies that stand to profit from the challenges posed by climate change, alongside four investable sub-indexes.

The 300 stocks chosen for the HSBC Global Climate Change Benchmark Index include those of companies involved in reducing carbon emissions and dealing with the impact of climate change.

“This index series captures both the imperative of reducing greenhouse gas emissions and the need to adapt to the physical impact of climate change,” claimed Nick Robins, head of HSBC’s Climate Change Centre of Excellence in London.

From the overall benchmark index, HSBC has established four investable climate change indexes that provide investors with exposure to companies that generate 50% of revenues from climate change-related business, such as solar power and biofuel companies.

The quartet of investable indexes are: HSBC Low Carbon Energy Production Index; HSBC Energy Efficiency and Energy Management Index; and HSBC Water, Waste and Pollution Control Index.

HSBC claims these four investable indexes are suitable for creating portfolios for a range of investment needs such as those of long-only funds, hedge funds, exchange-traded funds (ETFs), discretionary funds and structured products.