GreenRevenues
2.0 data model
Quantifying balance sheet
exposure to environmental impact

Taking a mirror to the market, FTSE Russell’s enhanced Green Revenues 2.0 data model brings
the world a closer look at the green economy; defining what it is and determining the companies
and activities that compose it. The data set was designed to ensure broad global coverage,
comprehensive classification of green activities, and granularity in the data provided.

Broad coverage

Comprehensive

The Green Revenues data model is a comprehensive
green classification system applied to nearly 98% of total
global market capitalisation, capturing over 19,000+ publiccompanies across 48 developed and emerging markets,with 10 sectors, 64 subsectors, and 133 micro sectors.
This ensures coverage of FTSE Russell’s broadest equity
indexes, including the full range of indexes in the FTSE Global
Equity Index Series and the Russell US Indexes.

The Green Revenues Classification System (GRCS) is ataxonomy used to define and measure the industrial transition
to a Green Economy. FTSE Russell’s Green Revenues
methodology comprehensively assesses all companies withrevenue exposure to the green business activities defined bythe Green Revenues Classification System.

Green Sectors

Green revenues
classification system

1064133Sectors
Subsectors
Micro sectors

Water
InfrastructureandTechnology
Waste andPollution
Control

Transport
Solutions

EnergyEquipment

GreenRevenues%

EnergyManagementand Efficiency

Environmental
Resources

Transport
Equipment
Food andAgriculture

Green Revenues 2.0 data model

EnergyGeneration

Environmental
SupportServices

2History
FTSE Russell has been researching and developing green industry
taxonomies since it launched the FTSE Environmental Markets Index Series
and accompanying FTSE Environmental Markets Classification System morethan a decade ago. This classification system was developed to identify
products and services that have a net positive environmental impact.
FTSE Russell has since extended the family of green taxonomies with the FTSE Green Revenues Classification
System (GRCS), incorporating evolving global standards and best practices. Companies are researched andanalysed based on their impact on climate change mitigation and adaptation, water, resource use, pollution,and agricultural efficiency.

Enhanced utility
The Green Revenues 2.0 data model identifies companies providing green products and services and classifies
associated revenues based on the Green Revenues Classification System. Using this data, a precise percentage ofgreen revenues is derived at the sector, subsector and micro sector levels for each company.
The Green Revenues data model can be used for portfolio- and company-level analysis to understand climatetransition risks and identify investment opportunities in the green economy, and can additionally be aggregated foranalysis at a country- or sector-level.

Used for

DeliveryIn 2020, the Green Revenues 2.0 data model underwent significant transformation to provide greater granularity andprecision to meet global demand for investment in the green economy and global climate and regulatory reporting,including the EU Taxonomy for Sustainable Activities.

Portfolio analysis

Flexible delivery via API bulk data feedand LSEG Workspace

Green Revenues data is available via flexible delivery through API bulk data feed and LSEG Workspace.
There is now an expanded set of data items including:Regulatory and climate reporting (e.g., EU Taxonomy)− Tier1 Green Revenue Percentage− Tier2 Green Revenue Percentage

Index construction

Investment product input
Research and analytics− Tier3 Green Revenue Percentage− Minimum Green Revenue Percentage Ex Nuclear− Maximum Green Revenue Percentage Ex Nuclear

Alignment to the EU Taxonomy
The EU Taxonomy and FTSE Russell’s Green Revenues Classification System are highly aligned on core activities togive investors an effective tool to identify companies involved in the green economy and quantify the share of theirrevenues that is likely to qualify under the EU Taxonomy.

Green Revenues 2.0 data model3

Classification system
The FTSE Green Revenues Classification System captures environmental products and services across the whole equity value chain, covering 10 greensectors, 64 subsectors and 133 micro sectors. It was developed with input and direction from the market through the FTSE Russell Green Industries
Advisory Committee— an external advisory board—and influenced by the HLEG proposal for a sustainable taxonomy from the EU High- Level Expert
Group on Sustainable Finance, ensuring that the classification system reflects best practices and addresses market needs.

Energygeneration

Energyequipment

EGEQ

Bio Fuels

Bio Fuels

Cogeneration

Cogeneration

Clean Fossil Fuels

Equipment

Geothermal

Clean Fossil Fuels

Hydro

Fuel Cells

NuclearGeothermal

Ocean & Tidal

HydroSolar

NuclearWaste to Energy

Ocean & Tidal

WindSolar
Waste to Energy
WindEnergy
management& efficiency

Environmental
resources

Environmental
support services

Food &agriculture

Transport
equipment

Transportsolutions

Waste &pollution control

EMER

ESFA

TETS

WP

Buildings & Property(Integrated)

Advanced & Light
Materials

Environmental
Consultancies

Agriculture

Aviation

Railways Operator

Controls

Key Raw Minerals& Metals

Finance &Investment

Aquaculture

Railways

Road Vehicles

Advanced Irrigation
Systems & Devices

Land Erosion

Road Vehicles

Video Conferencing

Recyclable Products& Materials

Smart City Design &EngineeringLogistics

Shipping

Energy Management
Logistics & Support
Industrial Processes
IT Processes
Lighting
Power Storage
Smart & Efficient
Grids

Food Safety,
Efficient Processing& Sustainable
Packaging
Sustainable
Plantations

Desalination
Flood Control
MeteorologicalSolutions
Natural Disaster
Response
Water Infrastructure
Water Treatment
Water Utilities

Water
infrastructure& technology

WI

Cleaner Power
Decontamination
Services & Devices
Environmental
Testing & Gas
Sensing
Particles & Emission
Reduction Devices
Recycling
Equipment
Recycling Services
Waste Management

Sustainable Property
Operator

Please contact FTSE Russell directly for access to sample data and further information on micro sectors.
Green Revenues 2.0 data model

4

Tiering assessment
Company activities are assessed against seven environmental
objectives and allocated to micro sector tiers based on overall impact

Green, greener, greenest
In order to assess net environmental impact of individual companies, FTSE Russell evaluates each business activity
defined by the Green Revenues Classification System through the lens of seven environmental themes (including all six EU
Taxonomy objectives and one addition). An overall score is derived for each micro sector based on impact—both positiveand negative—of each environmental objective. This work is then turned into an overall strength of greenness in three tiers.
The micro sector tiering assessment allows users to assess exposure to various levels of green products and services andprovides the flexibility to focus on activities with higher net environmental impact.

Environmental impact

Tier 1
Clear and significant

Tier 2
Net positive

Tier 3

1.

Climate change mitigation

2.

Climate change adaptation

3.

Pollution prevention and control

4.

Protection of healthy ecosystems

5.

Sustainable use and protection of water and marine resources

6.

Transition to a circular economy, waste prevention and recycling

7.

Sustainable and efficient agriculture*

Limited* Additional to EU Taxonomy objectives, included to capture products and services with significant environmental benefit.

Green Revenues 2.0 data model

5

Point data insight

Estimation types

Enhanced estimation modelling
The leading challenge with capturing green revenues data is the gap in company disclosure on green activities. The Green
Revenues data model relies on reporting that many times simply wasn’t created to accommodate tracking these categories.
In response, FTSE Russell has developed a proprietary estimation model to calculate best estimates of Green Revenues
data. Using a structured, transparent, repeatable process, the FTSE Green Revenues estimation model builds on data
hierarchy based on availability of reported data.
− This estimation model has allowed the Green Revenues 2.0 data model to provide point estimate data for all companies
that have been identified to generate green revenues.
− Data on the use of estimates is included to offer transparent insight into the conviction underlying green revenues
data points.
− The tiered estimation approach provides disclosed data, company specific estimates, or sector specific estimates
depending on the level of information available.

Green Revenues 2.0 data model

Disclosed

Company specific

Sector specificGreen Revenues percentage
is calculated from detailed
company disclosure. Sufficientrevenues data is provided.

When partial disclosure data
is available, an estimate isbased on other available
non-revenue company, peer
or sector/country data.

For companies with known
green revenues but noavailable disclosures, aquantitative model is used tomake an estimate based onsector performance.

6

Who’s the greenestof them all?
Quantifying company level exposure to the green economy has
been a journey in discovery—solidifying perceptions and industry
standards in a rapidly evolving space. Reflecting the market as
it changes, we have recorded substantial growth in green
ecconomic activity. We expect the pace to accelerate and lookforward to continuing to expand Green Revenues and ourenvironmental data capability.
Contact us at info@ftserussell.com for a data trial or to learn more about how it
can be used to support EU Taxonomy reporting, investing and research needs.

Green Revenues 2.0 data model7

Disclaimer

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