March 25, 2010 / 3:31 PM / 9 years ago

TSX, S&P launch Canadian clean technology index

* New index will measure performance of 21 companies

* Companies operate in five green sectors

OTTAWA, March 25 (Reuters) - Investors can now track the performance of Toronto-listed green energy companies on the new S&P/TSX clean technology index .GSPTXCT, launched on Thursday by Standard & Poor’s and TMX Group Inc (X.TO), parent of the Toronto Stock Exchange.

The index, created in response to growing investor demand, tracks 21 Canadian-based companies whose core business is the development and use of green technologies and sustainable infrastructure.

“Toronto Stock Exchange has become a key listing, financing and trading destination for clean technology companies,” said Ungad Chadda, senior vice-president of the TSX.

“The creation of the S&P/TSX clean technology index is a significant step forward for this important new industry sector.”

The companies operate in five sectors: renewable energy production and distribution, renewable energy manufacturing and technologies, energy efficiency, waste reduction and water management, and low-impact materials and products.

“A growing number of investors are interested in the clean technology investing theme,” said Jasmit Bhandal, director of S&P Indices in Canada.

“This new index provides a gauge for investors to assess the hypothesis that global interest in clean technology will lead to a favorable environment for clean technology companies.”

Securities, which must each have a float-adjusted market value of at least C$100 million ($98 million), are screened by Jantzi-Sustainalytics, which provides environmental, social and governance research and analysis.

The weight of each stock is based on its float-adjusted market cap, but is modified so that no one stock has a weight of more than 10 percent.

$1=$1.02 Canadian Reporting by Susan Taylor; editing by Rob Wilson

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