FTSE Russell launches green revenue system

Data provider FTSE Russell has launched a Green Revenues 2.0 Data Model which measures green revenue exposure of more than 16,000 companies globally.  

The classification system would apply a tiering system to 10 sectors to determine environmental impact based on seven objectives and firms’ revenue would be classed as ‘limited’, ‘net positive’ or ‘clear and significant’. 

Companies were selected from the 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 sectors. 

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Data dated back to 2008 which allowed investors to look at company’s historical performance as well as current. 

It could also be used to aid investors with regulations such as the Taskforce on Climate-related Financial Disclosures (TCFD) requirements.  

Arne Staal, global head of research and product management at FTSE Russell, said: “FTSE Russell’s enhanced Green Revenue 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. 

“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 20 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.” 

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