A new stock index aimed at making responsible investing easier has been launched by Beyond Advisors.
The US Vegan Climate Index screens US Large Cap stocks for vegan and environmental criteria. The Index excludes any stocks whose activities are incompatible with a vegan and climate-conscious approach to investing.
The criteria for exclusion include animal testing, animal-derived products, animals in sport and entertainment, and fossil fuel – among others, removing approximately 41 percent of the market capitalization of the Solactive US Large Cap index.
The average market capitalisation of the 308 companies currently listed on the US Vegan Climate Index – which include Google, Facebook and Microsoft – is $255bn, slightly higher than the Solactive US Large Cap Index.
Beyond Advisors – the research arm of impact investing platform Beyond Investing – created the index.
Investment Analyst Claire Smith, who spearheaded the project, said: “For the first time that proportion of the US stock market whose business models harm animals and the environment can be identified.
“With reports suggesting six percent of the US population identify as vegan, Beyond Advisors anticipates demand for financial products based on this index to serve the requirements of vegans and environmentalists who do not want their money supporting businesses whose activities they oppose.”
The US Vegan Climate Index is the first of a suite of vegan and environmentally-friendly indices to be launched by Beyond Advisors.