Capturing emerging trends in the green economy with LSEG’s Green Revenues Classification System

As the green economy expands into areas such as climate adaptation and biodiversity, investors increasingly require more precise ways to identify, measure and access emerging opportunities. This research shows how LSEG’s Green Revenues data model and Green Revenues Classification System (GRCS) provide a robust foundation for systematically defining and capturing evolving themes.

Key takeaways:

• A comprehensive framework for the green economy - The Green Revenues data model classifies revenues for more than 21,000 companies across 93 countries, covering nearly 99% of global market capitalisation.
• Granularity enables precision - The Green Revenues Classification System maps company revenues at the micro sector level, allowing investors to identify specific environmental activities.
• Flexibility across evolving themes - The framework supports identification of emerging areas such as climate adaptation and biodiversity, as well as future themes as environmental priorities continue to expand.
• A foundation for investable solutions - By linking revenues to defined environmental objectives, the Green Revenues Classification System enables the construction of transparent, rules-based indices and investment strategies aligned with sustainability goals.

Points of differentiation:

Application through thematic case studies - In this research, climate adaptation and biodiversity are developed as fully constructed index simulations, demonstrating how emerging environmental themes can be translated into investable strategies. We explore how each simulation produces differentiated industry and geographic profiles, reflecting the underlying drivers of the theme.

What does our research mean for investors?

The climate adaptation and biodiversity index simulations demonstrate how the Green Revenues data model and Green Revenues Classification System can be used to build environmental thematic exposures.

As sustainability priorities continue to evolve, the ability to define and scale new thematic exposures will become increasingly important. LSEG’s Green Revenues capabilities are designed to support this process, providing a flexible foundation for developing future thematic indices and investment solutions.

Further reading:

Inside the green economy: what it is and why it matters
LSEG’s Green Revenues data model