Based on company disclosure, the index is invested 7% prevention/minimisation, 42% treatment, 20% recycling,17% energy recovery and 14% disposal: hence the index’s main tilt is less landfills (this is not the area of future growth), more collection/treatment/recycling. This sectoral breakdown is expected to be fairly stable short-term, and yet may vary according to changes in the industry dynamics.
The index composition is reviewed every six months by Société Générale (the index sponsor). The index is also reviewed to meet liquidity, and other tradability constraints.
The largest constituents are capped at 15% of the basket at each review. The number of stocks (currently 30) is subject to change.