Global index, data and analytics provider FTSE Russell announced the launch of Green Revenues 2.0 Data Model, a platform used to measure the green revenue exposure of more than 16,000 listed companies across 48 developed and emerging markets.
The updated model aims to provide investors with a clearer picture of their “green exposure,” with a comprehensive classification system covering green products and services in 10 sectors, 64 sub-sectors and 133 micro-sectors. The model also offers a tiering system to determine the net environmental impact of revenues based on seven environmental objectives, providing rankings the revenues of ‘Limited’, ‘Net Positive’ and ‘Clear and Significant.’
FTSE Russell stated that the model can also be used for a growing number of regulatory reporting needs, including climate performance against Task Force on Climate-related Financial Disclosures (TCFD) requirements and EU Taxonomy regulation.
Arne Staal, Global Head of Research and Product Management, FTSE Russell, said:
“FTSE Russell’s enhanced Green Revenues 2.0 Data Model is a powerful tool that investors can use to quantify a company’s contribution to the green economy in a single percentage of revenue figure. A high degree of overlap with the incoming EU Taxonomy will also allow asset managers to demonstrate the proportion of a fund that contributes to the growing and dynamic green economy.
“Investors need access to high quality, comparable and relevant underlying data, available at scale, to support their sustainable investing strategies. FTSE Russell has been developing ESG index and data products for almost twenty years to help meet investor requirements to incorporate sustainable investments into their portfolios. Our green revenues datasets are being used in a multitude of ways including in the FTSE TPI Climate Transition Index, which provides increased exposure to the opportunities arising from the global green economy.”
The original Green Revenues data model was launched in 2015, and serves as the underlying data to London Stock Exchange’s Green Economy Mark, which is awarded to London listed companies with over 50% of green revenues. The model is also used to underpin several prominent index series including the FTSE Russell TPI Climate Transition index and the FTSE Environmental Markets Index series.