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Tesla Leads Way in Carbon Collective’s Updated Climate Index

A Tesla Inc. Model 3 electric automobile stands charging at dusk at a Tesla Supercharger station in Breukelen, Netherlands.

(Bloomberg) —

Carbon Collective, a San Francisco-based investment adviser, added 62 companies focused on “scalable” environmental solutions to its climate index.

The index was started last year as a way for investors to allocate funds to companies deemed to be at the forefront of developing solutions to address climate change, said James Regulinski, co-founder of Carbon Collective. With the index, “we can transparently and aggressively invest in these scalable solutions quickly,” he said.

The latest update increased the size of the index to 169 stocks, with companies ranging from AAON Inc., which sells geothermal water-source heat pumps, to Zoom Video Communications Inc., a video conferencing company.

Carbon Collective’s index offers a mix of clean energy, building efficiency, food and agriculture, as well as health-care companies. Additions to the index include 10 electric-vehicle companies, seven plant-based food companies and three women’s reproductive health companies.

The five-largest companies in the market-capitalization weighted index are Tesla Inc., NextEra Energy Inc., Applied Materials Inc., Zoom Communications and ABB Ltd.

Climate-focused indexes are growing in popularity. MSCI Inc. introduced eight thematic indexes Wednesday, including offerings that focus on natural resources, sustainable water transition, renewables and energy efficiency, as well as the plastics transition. Bloomberg LP, the parent of Bloomberg News, also offers environmental, social and governance indexes.

To contact the author of this story:
Tim Quinson in New York at standards@bloomberg.net

© 2021 Bloomberg L.P.

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