Instrumental factors for the Global Green Finance Index (Page under construction)
In selecting instrumental factors to compile GGFI, a number of key properties are essential
Time series – where possible we will seek data that is contemporary (published within the last three years) is part of a series (collected as part of a programme rather than as a one off) and is on-going (there are plans to update it in the future).
Locational relevance – where possible we will seek data at a financial centre level. Where this is not possible we will use appropriate apportionment rules and/or alternative data ie regional.
Accessibility – data should be publically accessible, this enables transparency in the assessments. Only in exceptional circumstances- for example where no public data exists for an essential measure, do we purchase data commercially.
Currently the GGFI uses around 140 instrumental factors which we have grouped into the following areas:
Financial Services- These are statistics on the development of financial service activities, including data on sustainable and green finance;
Business Environment- These include economics statistics as well as information on legal issues and sustainable policy;
Social Capital- These include data on social and educational development;
Environment And Infrastructure- These focus on the physical attributes of centres such as air quality and carbon emissions, as well as telecommunications and transport etc.;
The rules for the use of this data in our analytical model are as follows:
updates to the indices are collected and collated every six months;
no weightings are applied to indices;
indices are entered into the GGFI model as directly as possible, whether this is a rank, a derived score, a value, a distribution around a mean or a distribution around a benchmark;
if a factor is at a national level, the score will be used for all centres in that country; nation-based factors will be avoided if financial centre (city)-based factors are available;
if an index has multiple values for a city or nation, the most relevant value is used (and the method for judging relevance is noted);
if an index is at a regional level, the most relevant allocation of scores to each centre is made (and the method for judging relevance is noted); and
if an index does not contain a value for a particular financial centre, a blank is entered against that centre (no average or mean is used).
The initial list of instrumental factors proposed for the first edition of the GGFI are listed below: