Key Features of the
Active Net Zero Index
Enablers not compliers
Penalising fossil fuel
Performance Not Promises
Longspur Radnor Indices Limited defines an Active Net Zero company as one which is actively helping others in the transition to a net zero world, not simply achieving net zero themselves throughout their operations. This distinction is encapsulated throughout the index methodology in the distinction between ‘Active’ net zero activities, ‘Passive’ net zero activities and Negative net zero activities.
The Active Net Zero Clean Energy Index methodology is based on company revenues. For a company to be eligible they must have an Active Net Zero Score of at least 50%. The methodology is aligned with the EU Taxonomy, the IPCC 1.5oC Report pathways, and the IEA Roadmap.
Negative net zero activities are those based on fossil fuels including coal, oil and natural gas. Whilst companies that produce fossil fuels can be included, revenues from this sector counts against its active revenues making it difficult for those with significant fossil fuel activities to be included.