Carbon Care Asia

Solactive CarbonCare Asia Pacific Green REIT Index

The property sector is responsible for approximately one-third of global greenhouse gas emissions and 40% of global energy consumption. This development drives growing interest from global real estate investors to integrate sustainability into their investment process. The Solactive CarbonCare Asia Pacific Green REIT Index is the first of its kind to close this gap and allow investors to identify companies which demonstrate strong sustainability performance and commitments to meet the carbon reduction targets set out in the Paris Climate Agreement.

Co-developed by Carbon Care Asia and Solactive, the Solactive CarbonCare Asia Pacific Green REIT Index was launched in Nov 2020. As many of the most precious properties in Asia Pacific are located in cities vulnerable to sea-level rise and extreme climatic events, the index serves as a valuable tool for investors to differentiate climate-conscious REITs which can protect their assets better from future shocks, from the rest of the pool.

It is a rules-based index and includes Asia Pacific REITs that own the highest percentage of green-certified buildings in their portfolio and which are committed to climate-aligned emissions reduction targets. Additionally, the index applies weights to reward best practices and industry climate leaders in the Asia Pacific region. The weighting methodology on securities is based upon a combination of factors such as the percentage of Certified Green Building Area owned; or a commitment to a Net Zero Emissions (NZE) target no later than 2050 or a Science-Based Target (SBT).

As of end of November 2020, the Solactive CarbonCare Asia Pacific Green REIT Index holds 56 REITs, with a weighted average yield of 4.3%. The index is quoted in USD and calculated as a total return index.

Solactive CarbonCare Asia Pacific Green REIT Index:
GTR: https://www.solactive.com/indices/?index=DE000SL0BUG7
NTR: https://www.solactive.com/indices/?index=DE000SL0BUF9
PR: https://www.solactive.com/indices/?index=DE000SL0BUE2

Solactive CarbonCare Asia Sustainability Bond Index

The Solactive CarbonCare Asia Sustainability Bond Index is the first index of its kind to measure the growth of green, social and sustainability bonds in the Asia Pacific region. Co-developed by CCA and the German index provider Solactive, this index was launched in December 2019 with the aim to accelerate the development of green bonds in the region and to enable investors to track the performance of Asia-Pacific bonds that can demonstrate high integrity and transparency in environmental and social contributions.

As a rules-based index, only bonds that are issued to contribute to environmental sustainability and to address social challenges leading to a positive impact in the region are eligible for inclusion. The eligible bonds are required to pass a two-layered screening by CCA in order to be included in the index. The screening is intended to examine the transparency standards of the bond issuers and that the proceeds from the bond issuance are designated for projects that have significant positive outcomes. This screening by CCA is in line with international best practices under its proprietary Green and Social Taxonomy.

This index also aims to become a valuable tool for asset owners in managing their ESG mandates and to serve as a reference for the wider investment community.

As of October 2020, the index has included 115 bonds, with a weighted average yield to maturity of 2% and duration of four years. The index is quoted in USD and calculated as a total return index.

Solactive CarbonCare Asia Sustainability Bond Index:
https://www.solactive.com/indices/?index=DE000SLA9ST6