ETF provider Global X announced today the launch of the Global X Green Building ETF (GRNR), offering investors with exposure to the green buildings sector, including companies involved in the design and development of green buildings, and those providing products and services that improve the sustainability of buildings.
Buildings are a key source of global greenhouse gas (GHG) emissions, and also one of the hardest to replace, given their long-term nature. According to the World Green Building Council, buildings are responsible for as much as 38% of energy-related carbon emissions globally and 50% of all extracted materials. As initiatives ramp to tackle climate change, significant investments are expected to be made in the green building sector, to produce buildings and solutions that address the climate and environmental impact of the sector.
Pedro Palandrani, Director of Research at Global X, said:
“The green building sector represents a multi trillion-dollar opportunity designed to meet the rapidly increasing demand for buildings while reducing greenhouse gas emissions and boosting climate resiliency. We expect green buildings to continue to gain market share due to increasing demand for sustainable solutions and new regulations, and I’m thrilled that Global X is leveraging its thematic expertise to seek to provide investors with access to companies involved in several business activities related to green building.”
The new ETF will track the Solactive Green Building Index. Companies included in the index must be involved in green building development, including the design, construction, redevelopment or retrofitting of properties that meet green building certification standards, in green building management, or in green building technologies and materials, including products/services that increase buildings’ efficiency, such as HVAC, energy management services, windows, and doors, among others.
Timo Pfeiffer, Chief Markets Officer at Solactive, said:
“Solactive’s longstanding innovative strengths in ESG indices root from our commitment to provide our clients with the most seamless and fitting ESG solution as well as from our clients’ dedication to offer innovative opportunities for investors to contribute to a greener planet. The Global X Green Building ETF cocoons this joint effort between Global X and us, and represents a step into the next stage of sustainable investing.”