Green Economy Mark equities have ‘demonstrated greater resilience and recovered faster than rest of the market’ during COVID-19


The number of companies London Stock Exchange (LSE) has awarded its Green Economy Mark has risen by 16% since the launch of the labelling scheme, according to their new report.

The Green Economy Mark, launched last October, highlights companies and investment funds listed on all segments of London Stock Exchange’s Main Market and AIM that are driving the global green economy.

To qualify for the Green Economy Mark, companies and funds must generate 50% or more of their total annual revenues from green activities.

Eight new issuers have been awarded the Green Economy Mark since its launch, taking the total number carrying the label to 86 issuers with a combined market cap of over £67bn, up from £55bn at launch.

The new companies to secure the mark include 63 corporations from a range of sectors, including United Utilities, National Express Group, Gresham House, and Good Energy.

The report also highlighted the performance of companies carrying the label.

Collectively, issuers with the Green Economy Mark have outperformed the FTSE All-Share Index over the past two years by 36%.

While the markets experienced significant volatility during the COVID-19 pandemic, Green
Economy Mark equities have, in aggregate, ‘demonstrated greater resilience and subsequently recovered faster than the rest of the market.’

Green Economy Mark issuers accounted for just two per cent of total market capitalisation on the exchange, but accounted for four per cent of the total number of equity issuers and eight per cent of total capital raised in the past 24 months.