NZX/S&P Dow Jones Indices launch carbon-efficient indices

New Zealand’s Exchange and S&P Dow Jones
Indices launch carbon-efficient indices

S&P/NZX Carbon-Efficient Indices designed as tools to measure and
encourage companies to act on emissions


3 MAY 2021 –
New Zealand’s Exchange (“NZX”) today launched New Zealand’s first carbon
efficient indices in partnership with the world’s leading index provider, S&P Dow Jones Indices
(“S&P DJI”), amid rapidly growing investor interest, and action globally to reduce carbon
emissions and address climate change.
New Zealand’s first ‘carbon light’ index
Aligned with best global practice, the two new indices, S&P/NZX 50 Carbon Efficient Index and
S&P/NZX 50 Portfolio Carbon Efficient Index, utilise Trucost’s environmental dataset to weigh
companies listed on the NZX according to their carbon intensity and sector impact. The key
objective behind the indices is to incentivise New Zealand companies to compare their carbon
intensity to their industry group peers around the world. Based on the carbon intensity of each
constituent company, a company’s weight may be adjusted positively or negatively, however, it
will not screen out a company from the index solely due to its carbon intensity.
At launch, the S&P/NZX 50 Carbon Efficient Index and the S&P/NZX 50 Portfolio Carbon
Efficient Index will be about 25% and 19% lighter on carbon emissions (carbon-dioxide
equivalent: CO
2
-e) than their parent indices, respectively, while providing similar risk/return
characteristics as the parent indices.
Showcase opportunity for Kiwi businesses
NZX Chief Executive, Mark Peterson, says many New Zealand companies are already strongly-
focused on emissions, and well-advanced in disclosing and discussing their approach to
sustainability and how they are managing ESG risks and opportunities.
“We see these S&P/NZX Carbon Efficient indices as an incentive for New Zealand issuers that
will help accelerate greater transparency.”
Mr Peterson says the new indices are inclusive – meaning that currently all S&P/NZX 50
companies are covered – and recognised disclosures of emissions, and comparatively better
performance than global peers, will be reflected in weightings.
“An important role for New Zealand’s Exchange is to ensure capital can be invested with
confidence into companies that provide opportunities for sustainable growth.”
“There is global consensus around climate change – and, with carbon intensity a key concern,
we expect investment products to be quickly created off the back of these indices.”

Rising demand for carbon benchmarks accelerates disclosure
S&P DJI Managing Director and Global Head of ESG Indices, Reid Steadman, says that there
has been a rising demand from asset owners and investors for benchmarks that take into
account companies’ carbon impacts, and the S&P Global Carbon Efficient Index Series fills the
gap and offers local listed companies a transparent tool and pathway for addressing climate
risks.
“With growing awareness from both institutional and retail investors, companies are increasingly
measuring and managing their environmental impacts. For example, since the launch of the
S&P/JPX Carbon Efficient Index in 2018, we have seen a 34.6% increase in the number of
Japanese companies that have disclosed their GHG emissions.”
“The S&P Carbon Efficient Indices and data help encourage behavioural change among
companies and shape the overall ESG landscape.”

ENDS.

For further information, please contact:

NZX Media – David Glendining +64 27 301 9248, david.glendining@nzx.com
NZX Investors – Graham Law +64 29 494 2223, graham.law@nzx.com
S&P Dow Jones Indices – Nadja Jiang +852 2841 1017, nadja.jiang@spglobal.com

About NZX
For more than 150 years we have been creating opportunities for Kiwis to grow their personal
wealth and helping businesses prosper. As New Zealand’s Exchange, we are proud of our
record in supporting the growth and global ambitions of local companies. NZX operates New
Zealand's equity, debt, funds, derivatives and energy markets. To support the growth of our
markets, we provide trading, clearing, settlement, depository and data services for our
customers. We also own Smartshares, New Zealand's only issuer of listed Exchange Traded
Funds (ETFs), and KiwiSaver provider SuperLife. NZX Wealth Technologies is a 100%-owned
subsidiary delivering rich online platform functionality to enable New Zealand investment
advisors and providers to efficiently manage, trade and administer their client's assets. Learn
more about us at: www.nzx.com
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data
and research, and home to iconic financial market indicators, such as the S&P 500® and the
Dow Jones Industrial Average®. More assets are invested in products based on our indices
than products based on indices from any other provider in the world. Since Charles Dow
invented the first index in 1884, S&P DJI has been innovating and developing indices across the
spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential
intelligence for individuals, companies, and governments to make decisions with confidence.
For more information, visit: www.spglobal.com/spdji/en/