Following a public consultation, S&P DJI has announced the S&P Global Clean Energy Index composition, which comprises 30 leading clean energy-related stocks. The will broaden after the necessary changes are made after April 19, 2021. Clean energy in recent times has garnered many investors' attention, and it is fueled by falling prices of renewable and growing momentum for carbon neutrality. Keeping this in mind, the S&P DJI Index Committee aims to have a benchmark that sets new opportunities.
The index will now aim to add new stocks with the purest form of clean energy exposure score of 1 without limiting the target number of companies. If the eligible stocks are less than 100, then the lower exposure scores are added up to 100 without breaching any defined dilution threshold. The company expects to increase the production of renewable energy sources that could help improve its risk/return profile as the theme continues to take shape in the years to come.
The index Committee also proposed to include emerging markets-listed stocks and expanding the clean energy business definition to include other eligible segments such as energy storage companies. Besides, S&P DJI will continue monitoring and seeking feedback from various business sectors to ensure that the S&P Global Clean Energy Index appropriately meets its objective.