Partnership brings asset-level ESG data to real estate capital markets, with index switchover go-live today.
SAN DIEGO, Sept. 23, 2024, the world's most widely adopted ESG data management solution for real estate, is pleased to announce a strategic partnership with FTSE Russell, a leading global index provider, to enhance the quality and availability of sustainability data for investments in the real estate sector. As of today, FTSE Russell's green indexeswill be powered by Measurabl's Quantum Cloud, the most authoritative repository of aggregated ESG real estate data.
Now, FTSE Russell's green indexes will be powered by Measurabl's Quantum platform, the most authoritative repository of aggregated ESG real estate data. Together, the FTSE EPRA Nareit Green Index Series and the FTSE EPRA Nareit Green Target Index Series track over $9.2 billion in assets under management (AUM) and represent a rapidly growing segment of the $404 billion tracked in the FTSE Russell Real Assets Index.
"By partnering with FTSE Russell, we are addressing a significant market challenge: the need for consistent, comparable asset-level ESG data that enables capital to flow more effectively into sustainable real estate investments," said Sara Anzinger, Senior Vice President of Capital Markets at Measurabl. "Most data providers in the market rely solely on publicly available data or a patchwork of estimates, resulting in significant inconsistencies in how companies report their sustainability performance for real assets.
"Measurabl's approach, which combines actual reported property energy and emissions data at the asset level, meaning property by property, with advanced machine-learning estimations, offers the market a new standard in ESG data quality. This completely changes how capital allocation decisions will be made, particularly as investor mandates increasingly demand ESG integration," Anzinger concluded.
The dataset in Measurabl's Quantum Cloud tracks 273M MTCO2e from 110,000 properties and 18 billion square feet of real estate across 93 countries. Measurabl's approach to company-level data is innovative. It combines public disclosures with its proprietary machine learning model trained on its large database of actual, measured, building energy data to estimate whole building energy consumption and carbon emissions. The bottom-up approach is aggregated at the portfolio level and consistently applied across the FTSE EPRA NAREIT Developed Index universe. This method helps bridge the gaps that have long impeded the integration of ESG data in the real estate sector.
The new approach is substantiated in a recent white paper jointly produced by FTSE Russell and Measurabl: 'Carbon disclosures in listed real estate.'
Recently, BlackRock launched the iShares Global Real Estate Environmental Tilt UCITS ETF, which tracks the FTSE EPRA Nareit Developed Green Low Carbon Target Select UCITS Capped Index, now improved by Measurabl's asset-level ESG data. The ETF aims for at least a 20% better environmental performance than its broader investment ecosystem, favoring more sustainable issuers. This use of the FTSE index, supported by Measurabl's high-quality data, highlights the increasing demand for investment solutions with strong sustainability credentials in the real estate sector.
"As the leading global REIT benchmark setters for ETFs and active mandates, FTSE Russell is entrusted with over USD $320 billion in benchmarked assets," said Ali Zaidi, Global Head of Real Assets at London Stock Exchange Group. "The rising requirement to systematically channel flows towards companies and assets with unambiguous sustainability credentials is not only prudent risk-management but speaks to the long-term viability of investment. Measurabl's groundbreaking asset-level approach enables FTSE Russell to create benchmarks with quantifiable sustainability uplift and contributes towards our shared goal of greening of the built environment."
"Our partnership with FTSE Russell positions Measurabl at the forefront of the market as the leading provider of institutional-grade ESG data for real estate," said Maureen Waters, President of Measurabl. "As asset owners and managers increasingly call for actual energy and carbon performance data, Measurabl is the only sustainability platform equipped to facilitate a paradigm shift for the entire industry ecosystem. We provide the most granular insights available, which builds confidence in the ESG performance of real estate investments. This partnership will further the adoption of high-quality sustainability data across the industry, supporting a virtuous cycle where better data leads to better investment decisions, which in turn fosters more sustainable outcomes."
Financial markets have struggled to incorporate sustainability performance for real estate into transactions. That's now changing as organizations like FTSE Russell and Blackrock have launched enhanced indexes and funds powered by Measurabl Quantum. This integration helps usher the industry into a new era, where more accurate sustainability metrics lead to smarter investment decisions, contributing to a more sustainable global economy.
About Measurabl
Measurabl is the world's most widely adopted ESG data platform, empowering over 1,000 customers in 93 countries to measure, manage, and report ESG data on more than 18 billion square feet of real estate. Measurabl helps organizations enhance ESG performance, mitigate climate risks, and capitalize on sustainable finance opportunities.
About FTSE Russell
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $15.9 trillion is benchmarked to FTSE Russell indexes. Leading asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
FTSE Russell is wholly owned by London Stock Exchange Group.
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