SGX launches first ESG REIT derivatives

The Singapore Exchange has launched the SGX Nikkei ESG-REIT Index futures.

The SGX says the launch are the world’s first ESG REIT derivatives giving investors access to the Japanese REIT sector. The Nikkei ESG-REIT Index consists of 60 Tokyo-listed stocks, which comprise nearly 100% of the US$160 billion market of Japan’s listed REIT securities. The index uses tilt methodology to adjust the weights of constituents using ESG ratings as evaluated by the GRESB.