This analysis is from BloombergNEF. It appeared first on the Bloomberg Terminal.
The Bloomberg Goldman Sachs Global Clean Energy Index (BGSCE), a listing that tracks global equities most exposed to the low-carbon transition, could see long-term revenue growth under a net-zero emissions scenario, according to BloombergNEF analysis.
Under BNEF’s 2021 New Energy Outlook (NEO) Green Scenario — a net-zero pathway to 2050 that relies on renewables, electrification and green hydrogen to curb global greenhouse-gas emissions — the revenues from firms listed in the BGSCE index could grow 287% by 2040 compared to 2022. Electric cars, clean power and renewable equipment manufacturing all drive this expansion. In NEO’s baseline scenario, growth is 184%.
These forecasts were calculated with BNEF’s TRACT Portfolio, a tool that assesses revenue risks for equity indexes under net-zero scenarios based on a firm’s revenue exposures today.
As regulators roll out sustainable-finance standards and climate stress-tests, TRACT can help investors better assess the transition risks — and opportunities — in their portfolio.
BloombergNEF (BNEF), Bloomberg’s primary research service, covers clean energy, advanced transport, digital industry, innovative materials and commodities. BNEF helps corporate strategy, finance and policy professionals navigate change and generate opportunities. Explore more content on the BNEF blog.
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