Clean-tech investment outshines benchmark
The Age
Monday August 17, 2009
CLEAN technology stocks are comfortably outperforming Australia's benchmark equity index despite Canberra not yet having imposed a carbon price, an analysis has found.Think tank the Climate Institute found clean investments performed 7.6 per cent better than Standard & Poor's/ASX 200 over the past six months. The margin increases to nearly 47 per cent over the three years to June 30.The analysis found the choice of clean versus benchmark investment was the difference between making a profit or a loss.Combining three clean technology indices the RepuTex Carbon Leaders Index Series, the RepuTex Climate Change Index Series and Bakers Investment Group's ALTEXAustralia it showed a clean investment of $1000 three years ago would have grown to $1249. An equivalent ASX 200 investment would have fallen to $779.Climate Institute chief executive John Connor said the results were in line with British climate economist Lord Nicholas Stern's belief that low-carbon investments would be the main driver of economic growth over the next two or three decades.With the world turning to clean energy, Australian companies are already showing we can benefit, Mr Connor said.With stronger domestic and regional policies our prosperity can grow much more.The report comes as Parliament is expected this week to belatedly pass a renewable energy bill that will require electricity wholesalers to source 20 per cent of supply from clean sources by 2020.It aims to put pressure on superannuation funds, warning they will play a central role in determining how the threat and opportunity attached to climate change is managed.As part of prudent risk management, super funds in Australia need to begin hedging their investments with low-carbon assets, the report says.It highlights the decision by VicSuper, Australia's largest public offer super fund, to put $150 million into a portfolio aiming to match the returns of the market with half the carbon footprint.
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