SGX launches world’s first ESG REIT derivatives

This deepens SGX’s partnership with Nikkei Inc.

The Singapore Exchange (SGX) has launched the world’s first environment, social and governance (ESG) real estate investment trust (REIT) derivatives, which is expected to deepen SGX’s partnership with Japan’s Nikkei Inc.

The SGX Nikkei ESG-REIT Index Futures contract seeks to meet the rising demand for integrating ESG into investment portfolios.

“We have always been a pioneer in the global REIT space, having established a vibrant ecosystem around this asset class since the first Singapore-REIT listing in 2002,” SGX Head of Equities Michael Syn said in a statement.

“Given strong investor demand for yield, deep liquidity and keen issuer participation, we are delighted to expand our partnership with Nikkei to offer investors another trusted tool for ESG investment and risk management.”

The Nikkei ESG-REIT Index consists of 60 Tokyo-listed stocks which comprises almost 100% of the US$160 billion market capitalisation of listed REIT securities market in Japan.