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
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
