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
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
