Clean energy specialist Longspur Capital has teamed up with corporate adviser Radnor Capital Partners to create a database of companies that are driving the energy transition.
The Active Net Zero Clean Energy Index evaluates firms based on their “actual performance” in contributing to a net zero world, aligned with the 1.5°C target set out in the Paris Agreement.
It uses methodology called Active Net Zero, which has been pioneered by Longspur and Radnor, to create a “systematic, transparent and repeatable framework”.
By judging companies based on their activities, it hopes to address so-called ‘greenwashing’ and net zero ‘laggards’ – companies that may have made decarbonisation pledges but have yet to deliver on them.
The index represents the top 50 European clean energy and related companies that meet the stringent criteria, adjusted for market capitalisation and liquidity.
Commenting on the launch, Adam Forsyth, head of research at Longspur Capital, said: “We were looking to create a universe and index that was not just reliant on negative screening, and ‘clean’ or ‘green’ labels.
“We wanted to create a systematic methodology that reflects a company’s active engagement and progress in pursuing a net zero outcome.”
Iain Daly, director and co-founder at Radnor Capital Partners, added: “This index has been designed with authenticity at its heart.
“Investors are eager and willing to invest in the companies building a more sustainable future, but the means to do this are not immediately clear.
“This index identifies those companies helping the world reach net zero, rewarding genuine contribution not vague or unrealistic promises.”