The underlying Nikkei ESG-REIT Index uses tilt methodology to adjust the weights of constituents using ESG ratings as evaluated by GRESB, the global ESG benchmark for real assets.
Singapore Exchange (SGX), in partnership with Nikkei, has launched the SGX Nikkei ESG-REIT Index Futures contract on June 14, making it the world’s first ESG-REIT derivative.
The instrument provides investors access to the Japanese REIT sector and is part of the SGX FIRST sustainability platform, which aims to meet rising demand for integrating Environment, Social and Governance (ESG) considerations into investment portfolios.
