Lily Dai
Billie-Louise Schlich
Jon Wallace
Grisha Milushev
The structural shift towards a net-zero economy requires scalable climate and environmental solutions and is unlocking significant investment opportunity.
The green economy, comprising companies offering environmental beneficial products and solutions, is demonstrating consistent growth. It represents an important long-term investment theme as global economies progress towards net-zero climate targets.
To help investors measure and assess green economy exposures of portfolios with varying investment strategies and sustainability goals, we developed Weighted Average Green Revenue (WAGR), a robust, standardised metric.
In this report, in collaboration with Jupiter Asset Management, we use WAGR to analyse green economy exposure of funds with Sustainability Disclosure Requirements (SDR) labels. We also present two case studies which highlight how LSEG Green Revenues data can be used to build funds focused on climate and environmental themes.
Key findings from the research
- As of June 2025, 88 funds with a total value of US$40billion have adopted SDR labels[Note1]. The majority – 58 funds – have adopted the ‘Sustainability Focus’ label.
- Most SDR-labelled funds in our analysis have greater green economy exposure than the broader listed equities market.
- However, green economy exposure of SDR-labelled funds varies significantly, ranging from 3% to 68% with an average of 20%.
Points of differentiation
- Data driven insights on green economy exposure of SDR-labelled funds, leveraging LSEG’s proprietary Green Revenues data and Lipper fund holdings data.
- Case studies on investment strategies of portfolios with exposure to the green economy, in collaboration with Jupiter Asset Management.
What does our research means for you?
Investing in climate-aligned strategies presents both opportunities and complexities.
For investors seeking meaningful climate alignment, it is important to go beyond fund labels and examine fund holdings using metrics such as WAGR. This can support the construction of portfolios that are positioned to benefit from the structural growth of the green economy.
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FOOTNOTE
[1] LSEG Lipper data. Total value refers to aggregated fund value. Back to Note 1
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