Climate Finance | December 9, 2021

Carbon Collective debuts new index of climate solutions

Amy Cortese
ImpactAlpha Editor

Amy Cortese

ImpactAlpha, Dec. 9 – Who says public companies can’t have impact?

Roboadvisor Carbon Collective is rolling out a new index of 169 publicly traded companies working to combat climate change, based on Project Drawdown’s framework of climate solutions.

On the list: EV maker Tesla, but also newly public Canoo, Proterra, Nio and The Lion Electric. In the circular economy sector are refrigerant management solutions provider Hudson Technologies and lead battery recycler Aqua Metals. The index also includes contraceptive makers such as Agile Therapeutics and Veru. Project Drawdown makes the case that family planning and girls’ education are key to climate adaptation and mitigation.

A rising stock price can help climate-focused companies further their missions. PlugPower is a powerful example, says Carbon Collective’s James Regulinski. After its stock price surged when Joe Biden was elected president with a mandate to tackle climate change, the hydrogen fuel cell company was able to sell more than $1.5 billion in fresh shares to further its mission.

The 169 companies, whittled down from a list of 400 candidates, must generate at least 50% of their revenue from a “drawdown” solution. Carbon Collective does not apply a financial filter.

“We’re not picking winners and losers in a space,” Regulinksi told ImpactAlpha. “We’re just defining which are the spaces that need to be invested in and who’s working primarily on one of the solutions.”