Methodology
The Climate50 Index methodology is a rules-based framework for a transparent green energy benchmark — designed to identify public companies with meaningful, core exposure to the climate economy and the broader sustainable investing universe.
Eligibility framework
A company may qualify if its business falls into at least one of three groups:
- Direct climate revenue: renewable power, energy storage, EVs, EV infrastructure, efficiency systems, or comparable climate solutions.
- Upstream enablers: essential climate-transition materials and components such as lithium, copper, rare earths, and nuclear fuel infrastructure.
- Climate infrastructure: builders and suppliers of the physical systems needed for electrification and decarbonization.
Together, these rules define the eligibility criteria for a focused renewable energy index and sustainable investing benchmark.
Greenwashing filter
Climate50 excludes companies where climate exposure is incidental, symbolic, or too small to drive the core economics of the business.
- No credit for simply consuming renewable power internally.
- No credit for vague sustainability language without core climate revenue.
- No inclusion for mixed-energy businesses where fossil exposure remains dominant.
Weighting and maintenance
- Constituent count: 50 stocks
- Weighting: modified market capitalization
- Single-name cap: 8%
- Minimum weight: none
- Sector caps: none
- Rebalance: quarterly
- Reconstitution: semiannual
How this compares
For a side-by-side look at how Climate50's rulebook stacks up against the major clean-energy ETFs (ICLN, QCLN, TAN, FAN, PBW, ACES), see our methodology field guide.
Climate50 sectors
Renewable Energy Generation Energy Storage Climate Infrastructure Upstream Materials & Components Energy Efficiency & Electrification Transportation Electrification Circular Economy & Recycling Water & Environmental Infrastructure