Aug 16, 2009 - 4:00pm
Australian clean technology stocks have outperformed the S&P/ASX 200 demonstrating that companies focused on climate change solutions are capable of earning superior returns and the potential for much more with stronger climate and clean technology policies, according to analysis from The Climate Institute
"With the world turning to clean energy, Australian companies are already showing we can benefit. With stronger domestic and regional policies, our prosperity can grow much more," said John Connor, The Climate Institute CEO.
The analysis combined three clean technology indices; the RepuTex Carbon Leaders Index Series, the RepuTex Climate Change Index Series and Bakers Investment Group’s ALTEX Australia Index and compared them with the benchmark, Standard and Poors ASX 200.
"If you invested $1000 separately in the S&P/ASX 200 and the clean indices 3 years ago, the clean investments would have grown to $1249 as at 30 June 2009, whereas the ASX 200 investment would have shrunk to $779," Mr Connor said.
The analysis shows that the average returns from the three clean indices were significantly higher than the benchmark index over all three investment horizons assessed to 30 June 2009 (6 months, 1, 2 and 3 years).
In the six months to June 2009, the clean indices outperformed the S&P/ASX 200 by 7.6%. This extended to 8.1% over the 12 month period and further on to 13.5% over the two year horizon. Most significantly, over three years the clean indices had almost 47% outperformance over the benchmark.
"This performance is a sign of things to come. According to Nicholas Stern, investments in low carbon, or low emissions technology will be the biggest driver of economic growth over the next 20 to 30 years."
"This analysis also demonstrates that large-scale investors such as superannuation funds and asset owners can manage the climate change risks within their listed equities portfolios, while earning superior returns for their members and driving growth in clean industries and jobs.
"But this performance will be hamstrung if there are not strong clean energy and technology policies that drive deeper investment and better returns for the bottom line and the climate."