Investing in the global green economy: sizing the opportunity
With the development of multiple new green taxonomies at the national level broad, granular datasets are going to be key in their implementation.
One of the key challenges is taking the step from defining taxonomies to the generation of company level data, where the level of disclosure is low. FTSE Russell Green Revenues 2.0 (GR 2.0) and Classification System addresses these issues. It provides investors with a broad range of end use: responding to EU taxonomy requirements, reporting to climate/TCFD recommendations, inputting into climate risk-adjusted indexes, and seizing climate risk opportunities in the portfolio management.
The latest report, through the lens of the GR 2.0 data, shows the green economy is:
- Represented by more than 3,000 global listed companies
- Sizeable, equivalent to a US$4 trillion market cap opportunity
- Over 5% of the total listed equity market
- Growing faster than the overall equity market
What do we know about the green economy?