What it is
FTSE Russell's Green Revenues Data Model classifies and measures the green revenues of over 16,000 publicly listed companies across 48 countries. It identifies 10 green sectors and 64 subsectors, calculating the percentage of each company's revenue derived from environmental solutions including renewable energy, energy efficiency, water, waste management, and sustainable agriculture.
Why we picked this
ESG ratings tell you how well a company manages risks. Green revenue data tells you something different: how much of a company's business actually contributes to environmental solutions. This distinction matters for investors building portfolios aligned with the green transition, not just managing ESG risk. FTSE Russell's model is the most widely used dataset for this purpose.
Key takeaways
- The model identifies over $4 trillion in annual green revenues across global equities, providing a bottom-up measure of the green economy's scale.
- Companies are classified as 'deep green' (50%+ of revenues from environmental solutions) or 'light green' (measurable but minority green revenues).
- The data underpins the FTSE Russell Green Revenues Index, which has outperformed the FTSE All-World Index on a risk-adjusted basis over multiple time periods.