Over the last month NASDAQ OMX has launched a range of Green Economy Indexes to track the performance of companies across the Green Economy. The indexes are intended to cover the entire green economic landscape, with constituents from industries closely associated with sustainable development. The Green Economy Index family is split into 13 different sectors: Energy Efficiency, Renewable Energy Generation, Healthy Living, Advanced Materials, Green Building, Bio/Clean Fuels, Pollution Mitigation, Natural Resources, Recycling, Lighting, Water, Transport and Financial.
The overall index is comprised of more than 350 securities from a universe of over 460 companies. The companies included are those involved in the shift to sustainable practices in business and infrastructure and have been selected by Rona Fried, Ph.D. of SustainableBusiness.com, LLC. The green Indexes were announced on September 22nd and, in all, 46 New NASDAQ OMX Green Economy Sector Indexes have been launched since October 13.
Anyway, within the Energy Efficiency sector there is a Green IT Index. It tracks companies that provide solutions to help with the reduction of energy consumption through online collaboration, efficient data centres, computer networks, and virtualisation software. It’s a fairly narrow view of Green IT, but in the context of a stock market index I guess it needs to be.
It’s going to be interesting to see how the index develops – you can see progress here. It’s been less than a month since it started tracking, but up until yesterday it was making steady progress, although I don’t know how it compares with the tech market in general. There was a sudden fall yesterday, though, to take the index to 972.37, down from the 1000 level at launch on October 13th. The fall just seems to be the result of a generally bad day on the NASDAQ, not helped by a disappointing outlook from Cisco, which hit the tech sector in general.