Clean energy specialist Longspur Capital and corporate adviser Radnor Capital Partners have partnered to develop the Active Net Zero Clean Energy Universe of European clean energy companies that are actively enabling the transition to a net zero carbon world.
The ‘Active Net ZeroTM’ methodology has been pioneered by Longspur and Radnor to evaluate companies based on their actual performance towards the energy transition in a systematic, transparent and repeatable framework.
The need for a deeper, more stringent, methodological review of the inclusion criteria for the clean energy sector is to avoid so-called ‘greenwashing’ which results in Net Zero ‘laggards’ – companies that may have made Net Zero promises, but have yet to deliver material ‘green’ revenues or capex commitments – being included in mainstream, ostensibly ‘clean’ energy indices.
The Active Net Zero Clean Energy Index [ANZNRG Index] represents the top 50 European clean energy and related companies that meet these stringent criteria, and then adjusted for market capitalisation and liquidity.
Adam Forsyth, Head of Research at Longspur Capital, says: “We were looking to create a universe and index that was not just reliant on negative screening, and ‘clean’ or ‘green’ labels. We wanted to create a systematic methodology that reflects a company’s active engagement and progress in pursuing a net zero outcome.”