Analysis of Global Green Indices for Hedging Climate Risk

Abstract

The principle governing the indices, instead of a regional or global concentration, is that some concentrate
on clean energy technologies while others concentrateon alternative energy system. Other factors which
differentiate the indices are below:
Focus oncompanies that are on companies which are principally engaged in the field of alternative
energy and excludes those companies for which alternative energy is optional to their main business.
Use a rule based approach that is obviously defined rules-based methodology, usually overseen by
an impartial Index Committee, employing a pre-defined screening methodology ensures that the
procedure is persistent and transparent.
 Are inclusive that strives to involve all companies that are principally engaged in the domain of
alternative energy within a given market, a given region, or globally. Some indices set a liquidity or
market capitalization filter while others track just a predetermined number of companies (i.e. the top
15 or the top 20)