With effect from Sept 26, iFast Corp, IGG Inc, Olam Group and Yangzijiang Financial Holding will exit the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index.
While these four companies take their leave off the index, six companies have been included into the index, namely CapitaLand Investment, Lendlease Global Commercial REIT, Grab Holdings, Prime US REIT, AIMS APAC REIT and StarHub.
The iEdge-OCBC Singapore Low Carbon Select 50 Capped Index tracks 50 globally-listed companies domiciled or incorporated in Singapore. Developed by Singapore Exchange (SGX) as part of the SGX Sustainability Indices product suite in collaboration with product specialists from OCBC Group, the index uses an exclusionary methodology to remove companies that have a heavy involvement in the fossil fuels sector, while upholding best-in-class selections based on Scope 1 and Scope 2 greenhouse gas emissions (GHG) per unit of revenue.
The top 50 remaining companies by market capitalisation will constitute the index with tiered capped weighting mechanism to ensure portfolio diversification. Mega cap stocks will be capped at 10%, while all other constituents will be capped at 7%. The index provides an opportunity for investors to reduce the carbon footprint of their investment portfolios.
See: SGX and OCBC launch low carbon index that tracks Singapore’s largest companies
Currently, the top 10 constituents on the index include: Singapore Telecommunications (Singtel), Oversea-Chinese Banking Corporation (OCBC), United Overseas Bank (UOB), DBS Group Holdings, CapitaLand Integrated Commercial Trust (CICT), Flex Ltd, SGX, Keppel Corporation, Sea Ltd and Wilmar International.
See also: A US$12 bil climate fund is readying a rare bond issuance
As at Sept 15, the index is down about 1.0% at 2,144.32.
