FTSE Russell launches new green real estate indexes
Global index and analytics provider, FTSE Russell has launches new green real estate indexes, the FTSE EPRA Nareit Green Indexes, which will allow investors to integrate climate risk in their investment strategies in listed real estate.
According to the firm, the new indexes would serve as extension to the FTSA EPRA Nareit Real Estate Index Series, which tracked over $340 billion in assets.
The new indexes would aim to adjust the weights of constituents in the underlying FTSE EPRA Nareit Developed Index.
To assess the sustainability performance of the constituents, the indexes would draw on geolocation data mapping from specialist data provider, GeoPhy, which mapped over 15 million buildings and covered real estate holdings for 93 per cent of the constituents of the FTSE EPRA Nareit Developed Index.
The data would then be matched with green certification data and would provide the basis for derailed energy use and carbon emissions modelling.
FTSE Russell’s head of sustainable investment, David Harris, said: “The real estate sector currently accounts for over a quarter of global carbon emissions. As the low carbon transition accelerates, it is imperative for investors to navigate climate-related risks and opportunities.
“Working with EPRA and Nareit, the new green real estate indexes from FTSE Russell will help the market to drive an ambitious sustainability agenda and provide investors with innovative tools to assist in this transition.”
AUTHOR
Oksana Patron
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
