Chinese companies are overhauling their counterparts when it comes to generating income from solar, wind, nuclear and other types of renewable energy.
The US companies that make up the world-renowned S&P 500 index, produce just 3.4% of their revenue from clean-energy sources. This is around half of what companies on the Shanghai Composite Index earn, according to Bloomberg.
Bloomberg has looked into more than 8,000 companies to determine how much of their revenue is attributable to clean energy.
“Shifting business models towards greener activities is about more than being virtuous for the sake of the planet. There’s a huge financial opportunity for companies that help drive the energy transition,” says Bloomberg’s Michael Daly.
Chinese solar leaders like LONGi Green Energy Technology and Tongwei are benefiting from the nation’s position in the clean energy supply chain. According to Bloomberg, the largest number of clean energy equity investment opportunities are in the Asia-Pacific region. The region has more than 680 companies where more than half their revenue come from clean energy. That compares with approximately 410 companies in the US and about 430 in Europe.