The London Stock Exchange (LSE) is recognized by many as a prominent focal point for sustainable finance. Like all other stock exchanges, its position at the epicentre of international financial markets means it is well placed to encourage companies and investors in the transition to a low-carbon economy.
Introduced in 2019, the LSE’s Green Economy Mark identifies London-listed companies and funds that obtain more than 50% of their revenues from products and services which contribute to environmental objectives, such as climate change moderation and adaptation, waste and pollution reduction, and the circular economy.
The GEM classification therefore provides visibility and facilitates investors to identify an array of “green economy” equities, enabling a broad exposure, rather than a focus on one area.
A standout junior company recently awarded the prestigious GEM classification in 2022 is Neometals (ASX: NMT), an emerging, sustainable battery materials producer. The company has developed a suite of green battery materials processing technologies that reduce reliance on traditional mining and processing and support circular economic principles.
Chris Reed, Neometals’ managing director said: “The Green Economy Mark is not an accreditation handed out lightly and Neometals is proud to have secured this recognition for our efforts to strengthen the circular economy. We look to develop projects that extract maximum value as efficiently as possible with minimal waste. The Green Economy Mark will add further visibility regarding our tangible progress towards conservation of finite resources, decarbonization, and supply chain resilience.”
Another company in the Green Economy Mark spotlight is Tirupati Graphite Plc (LON: TGR), a company focused on developing a fully integrated flake graphite and graphene manufacturing system.
Not only is graphite officially listed as a critical mineral in the USA, but graphite and graphene are materials with extensive contributions to the green economy. According to Tirupati Graphite, graphite alone has 150 applications, improves energy efficiency in technological applications, and reduces carbon emissions in sectors from concrete manufacturing to fire safety.
The LSE also states that any company in receipt of the GEM will be reviewed on an annual basis. Issuers that continue to meet the requirements will retain the GEM, however, if their green revenues percentage decreases below 50%, the GEM will be revoked, ensuring accountability and fairness.
