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, the exchange said.
NZX chief executive Mark Peterson said 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," Peterson said.
He said 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.
"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," Peterson said.
S&P DJI managing director and global head of ESG Indices, Reid Steadman, said that there had been rising demand for benchmarks that take into account companies' carbon impacts.
"With growing awareness from both institutional and retail investors, companies are increasingly measuring and managing their environmental impacts," Steadman said.
TIL Logistics places notes
New Zealand freight and logistics company TIL Logistics said it had placed $8.2 million of mandatory convertible notes to some of TIL's largest shareholders and other wholesale investors to repay bank debt.
Together with cash of $1.8m, TIL will repay $10m of senior secured debt under its existing facilities.
Chairman Trevor Janes said the placement was of "considerable value" to TIL Logistics Group in assisting to reduce core debt.
"The placement also provides the opportunity to welcome new wholesale investors to the company," he said.
