Well, it appears that we have some further evidence of the growing trend towards sustainability in the investment community. NASDAQ has announced that it will be expanding its OMX Global Sustainability Index from 50 to 100 names. Why? Well, according to NASDAQ, it appears that many investors are requesting a larger set of companies to create ETF’s, mutual funds and separately managed accounts.
So effective November 22, the index will expand to 100 securities and the name will change to the NASDAQ OMX Global Sustainable Index (QCRD). The index is an equally-weighted equity index that serves as a benchmark for stocks of companies that are taking leadership in sustainability performance reporting and are traded on a major US stock exchange. The index is made up of companies that have taken a leadership in disclosing their carbon footprint, energy usage, water consumption, hazardous and non voluntary disclosing their current environmental, social and governance risks as well as their revenue opportunities and how it will affect future performance. The index is evaluated on a semi-annual basis in May and November.
So to address additions, I’ll refer to you to the link below (given there are 50 new names). For the Canadian readers, it’s interesting to note that the following companies were on the Top 50 List:
- Bank of Montreal
- Bank of Nova Scotia
- Potash Corporation
- Toronto Dominion Bank
Additions to the 100 index include the following Canadian companies:
- Barrick Gold Corp.
- Canadian Imperial Bank of Canada
- Royal Bank of Canada
- TransAlta Corp
- Suncor Energy
Here’s the link for further information: http://ir.nasdaq.com/releasedetail.cfm?ReleaseID=532129