The Tel Aviv Stock Exchange TASE said on Monday it would launch a new index next month comprising Israel39;s largest companies but excluding those involved in the production chain of fossil fuels.
The new Fossil Fuel Free Climate Index will start trading on Dec. 6 and is expected to comprise 112 companies all of which are in the benchmark TA125 index with a current total market value of 545 billion shekels 162 billion.
A simulation by the TASE performed on Oct. 15 found that the new green index outperformed the TA125 over the prior year with a yield of 12.15 versus 9.71, and over five years with a yield of 221.6 versus 186.3.
Similarly, the SP 50039;s Fossil Fuel Free Index outperformed the SP 500 over the past five years, TASE noted.
The capital market can and should trigger environmental and social change that affects all of our lives as well as the future generations, said TASE chief executive Ittai Ben Zeev.
The bourse is joining the worlds leading exchanges, in allowing investors and market players to take a moral stand in their investments, by offering a broader and more diversified range of products as part of TASEs longterm strategy, he added.
TASE said a company engaged in the exploration, production, conveying, storage and refining of fossil fuels gas, coal, petroleum, oil shale and their derivatives would not be a part of the new index.
Companies engaged in the construction and operation of power plants that use fossil fuels to generate electricity…