SGX and OCBC launch low-carbon index of Singapore companies

SGX building on Shenton Way in SingaporeSGX building on Shenton Way in Singapore

Singapore Exchange (SGX) and OCBC have launched the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index to track the top 50 Singapore companies based on carbon intensity performance, the two companies said in an exchange filing Monday. 

The new product removes companies with a heavy involvement in the fossil fuel sector, while maintaining best-in-class selections based on greenhouse gas (GHG) per unit of revenue, the filing said. The resulting top 50 companies by market capitalisation will have a capped weighting to ensure portfolio diversification, the filing said.

The index was developed by SGX as part of its Sustainability Indices product line with collaboration with product specialists at OCBC, the filing said.

“We are very pleased to partner with OCBC Bank to develop this purpose-driven index, that serves a strong demand for portfolio decarbonisation,” Ng Kin Yee, managing director and head of data, connectivity and indices at SGX, said in the statement. 

“The global green awakening has seen investors paying close attention to the actual carbon profile of companies, over and above green targets. Interest levels and references made on our sustainability indices have grown year on year with the launch of SGX Sustainability Indices suite in 2016 and the expansion of our ESG indexing capabilities following the acquisition of Scientific Beta in 2020,” Ng added. 

Sunny Quek, head of global consumer financial services at OCBC Bank, said the new index is an example of the bank’s commitment to work toward low-carbon economies. 

The top-10 constituents of the new index are DBS, UOB, OCBC, Singtel, Sea Ltd., Flex Ltd., Ascendas REIT, Singapore Exchange, Wilmar International and Keppel Corp. 

Real estate makes up 28 percent of the new index and banking 23 percent, according to a fact sheet on the index.

 

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