Nikkei Inc. has launched a new green real estate index, the Nikkei ESG-REIT Index, which incorporates environmental, social and governance (ESG) factors.
The firm noted that responsible investment strategies are expanding globally, with investors integrating ESG factors into listed real estate allocation processes. In response, Nikkei has developed a Japanese REIT index that takes ESG performance into account based on the GRESB Rating. Index constituents are selected from REITs listed on the Tokyo Stock Exchange, and market capitalization weights are adjusted so that high-performing REITs have increased weights in the index.
Ruben Langbroek, head of Asia Pacific at GRESB, said, “GRESB supports investor demand for standardized and validated ESG performance data for real asset investments. One of the fastest growing markets for responsible investment in Asia is Japan, and most Japanese REITs report their ESG practices via the annual GRESB Assessment. The Nikkei ESG-REI
