BOURSE operator Singapore Exchange (SGX)$SINGAPORE EXCHANGE LIMITED(S68.SI)$ and OCBC$OVERSEA-CHINESE BANKING CORP(O39.SI)$Bank announced that they have jointly launched an index that tracks 50 Singapore or globally-listed companies based on their carbon intensity performance.
In a bourse filing on Mar 14, the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index will track the top 50 companies by free-float market capitalisation that are representative of Singapore's real and financial economy.
The index was developed by SGX as part of its Sustainability Indices product suite together with product specialists from OCBC. It uses an exclusionary methodology to remove companies that have a heavy involvement in the fossil fuels sector, while upholding best-in-class selections based on their Scope 1 and Scope 2 greenhouse-gas emissions per unit of revenue.
Scope 1 emissions refer to direct emissions from sources that a company owns or controls, while Scope 2 emissions refer to indirect emissions from the generation of energy that a company has purchased.
The resulting top 50 companies by market capitalisation will constitute the index with a capped weighting. Environmental and carbon intensity data are sourced from Sustainalytics, an investment research firm specialising in environmental, social and governance factors.
SGX and OCBC noted that the impact of portfolio decarbonisation in the index is measured through its Weighted Average Carbon Intensity (WACI) and that historically, the index has achieved an average of 50 per cent reduction in WACI when compared to a standard cap-weighted index.We think that it show the foresight of OCBC to get into the low-carbon affairs,and investors may could take it for reference.
Source:BT
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