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.”
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.