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
Ausbil is growing its active ETF range with an ESG product in collaboration with sister company Candriam.
Philanthropic investment group Future Generation’s CEO, Caroline Gurney, will step down from her role at the start of next year.
The newly combined L1 Group is expectant of stabilising Platinum’s falling funds under management within the next 18 months, unveiling four growth pathways and a $330 million equity raise.
Janus Henderson Investors has launched a global small-cap fund for Australian investors, which includes a 5.4 per cent weighting to Australian equities.
