Real estate investing has historically lacked the appropriate tools to allow investors to assess their exposure to climate risk and to integrate it effectively in their investment strategies.
To help address this gap, the FTSE EPRA Nareit Green Indexes have been designed to allow investors to identify real estate companies with strong sustainability performance.
These indexes are a sustainability-focused extension to the FTSE EPRA Nareit Global Real Estate Index Series, with approximately US$341billion of assets tracking this leading series of listed real estate benchmarks1.
Additionally, these indexes:
- Draw on a geolocation dataset from GeoPhy, of over 15 million buildings to assess the sustainability characteristics of real estate portfolios
- Use FTSE Russell’s tilt methodology to adjust constituent weights based on green building certification and energy usage, significantly improving the climate and sustainability characteristics of the index
- Meet a variety of investor preferences, by offering an alternative version of the index, which focuses on limiting tracking error to the parent benchmark by minimizing active sector and country weights. This version also provides significant but more modest sustainability improvements
- Are managed in partnership with the European Public Real Estate Association (EPRA), and the US-based association for REITs and publicly traded real estate companies, Nareit