Oct. 22, 2008 - Companies in the climate-mitigation business - think renewable energy, nuclear power, and energy management - now generate a whopping $300 billion in revenues each year, according to new figures from banking giant HSBC. The bank says that 390 companies around the world can now be classed as providing goods or services that tackle climate change - up from 300 companies a year ago and about 166 in early 2004. Though the companies vary widely, HSBC says that together they represent a clear "identifiable sector."

"During the last year we've seen a massive growth in the number of companies providing goods and services designed to address climate change," says Joaquim de Lima, global head of quant research for equities at HSBC. "This demonstrates that companies are taking the issue seriously and are willing to adapt their businesses to the challenges."

The companies range from large multinationals (Siemens and Philips) to renewable energy companies (Vestas and Suzlon) to many smaller start-ups, such as energy-management software specialists.

HSBC has been following the growth of this sector through its Global Climate Change Benchmark Index, which tracks the stock market performance of key companies that are best placed to profit from the challenges presented by climate change. The performance of the benchmark has been tracked back to 2004 and has outperformed the MSCI World Index by around 70%.

The bank also recently launched a hedge fund targeting the environmental technologies and green infrastructure markets.