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FTSE Russell Launches Enhanced Green Revenues 2.0 Data Model

Date 14/09/2020

  • Enhanced data model provides more comprehensive coverage, improved granularity of revenue exposure, and green ‘tiering’ to identify the net environmental impact of company activities
  • FTSE Russell’s green revenues markers now cover 10 sectors, 64 sub-sectors and 133 micro-sectors
  • The Green Revenues Classification System features high overlap with the EU Taxonomy, providing a standard for reporting excellence set to be implemented by the end of 2021
  • The green economy is worth approximately $4 trillion, representing 6% of the market capitalisation of all global listed companies

FTSE Russell, the global index, data and analytics provider, has launched its enhanced Green Revenues 2.0 Data Model, which measures the green revenue exposure of more than 16,000 listed companies across 48 developed and emerging markets. This represents 98.5% of the total global market value of listed companies.

FTSE Russell’s Green Revenues 2.0 Data Model provides investors with a comprehensive classification system covering green products and services in 10 sectors*, 64 sub-sectors and 133 micro-sectors. A green ‘tiering’ system is also applied to determine net environmental impact based on seven environmental objectives, recognising that green revenues come in lighter and darker ‘shades’. By using three tiers to rank sources of green revenue by ‘Limited’, ‘Net Positive’ and ‘Clear and Significant’, FTSE Russell’s Green Revenues data supports a clearer understanding of investors’ ‘green exposure’. The data 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. Over a decade of green revenues data is available, dating back to 2008, enabling investors to track a company’s progress in achieving green standards.

FTSE Russell’s Green Revenues data model was originally 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. Launched in 2019, the Mark has been awarded to 86 issuers across London markets. The data 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.

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.”

FTSE Russell’s new Green Revenues 2.0 data model marketing resource is available here

* The 10 sectors are Energy generation; Energy equipment; Energy markets and efficiency; Environmental resources; Environmental support services; Food and agriculture; Transport equipment; Transport solutions; Waste and pollution control; and Water infrastructure and technology.