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Report published May 25, 2026

Capturing Emerging Trends in the Green Economy: A FTSE Russell Analysis

FTSE Russell · May 25, 2026

This report details how LSEG's Green Revenues Classification System (GRCS) captures emerging green economy trends like climate adaptation and biodiversity through granular data and index simulations.

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Finvaulta summarizes FTSE Russell's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

  • 1.LSEG's Green Revenues Classification System (GRCS) enables granular identification of emerging green themes like climate adaptation and biodiversity across 133 micro sectors.
  • 2.Climate adaptation and biodiversity simulations show significant sector tilts towards Industrials and Utilities, contrasting with broad tech-heavy benchmarks.
  • 3.Biodiversity loss poses a material financial risk, as approximately $44 trillion of global GDP is moderately or highly dependent on nature.

Table of Contents

  • Executive summary
  • Mapping the green economy
  • From data to investable exposure: The FTSE Environmental Markets Index Series
  • Green Revenues Classification System: Designed for granularity and thematic flexibility
  • Simulation 1. Climate adaptation
  • Simulation 2. Biodiversity
  • Conclusion
  • Appendix 1: GRCS micro sectors with contribution to climate change adaptation
  • Appendix 2: GRCS micro sectors with contribution to biodiversity
  • Appendix 3: Industry and Country Compositions

Report data

The Green Revenues Classification System: 10 sectors and 64 subsectors

MetricEstimateContext
Climate-related economic losses4.3 trillion USDTotal economic losses due to physical climate risks.
FTSE Environmental Opportunities Energy Efficiency Index Annualized Return25.8%Return performance of targeted green sector exposure.
Biodiversity finance funding gap700 billion USD per yearShortfall in financial resources required to protect and restore nature.
Source: WMO; FTSE Russell; Kunming-Montreal Global Diversity Framework. This is a dated model snapshot, not a live forecast.

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