Global X launches ETF based on Solactive Green Building Index
The selection of the constituent companies is based on ESG negative screening along with high performance and liquidity.
As momentum builds in global climate policy, developing and retrofitting green buildings and infrastructure are quickly becoming an important sector of real estate. Green buildings are
Global X has deployed the Solactive Green Building Index for its new Green Building ETF, which addresses a fundamental issue to climate change mitigation policies as innovative technology, like artificial intelligence and engineered wood, allows buildings to reduce their environmental impact through lower energy consumption.
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.”
ETF tracks green building management, development and technologies
The Green Building ETF tracks the performance of companies that have business operations in the field of green building management, development and technologies, globally. The selection of the constituent companies is based on ESG negative screening along with high performance and liquidity.
To be considered for inclusion in the index, companies must be involved in the following activities:
Green Building Development: Companies that design, construct, redevelop, or retrofit properties that meet reputable green building certification standards. Green building certification standards verify that a building has met certain environmental, energy, human health, and other standards in its design, construction, and operation.
Green Building Management: Companies that manage and/or operate buildings that have obtained a green certification.
Green Building Technologies & Materials: Companies that provide products/services that increase the energy efficiency of residential, commercial, or public buildings. This includes products/services such as insulation and building envelopes, controls and displays for heating, cooling, lighting and home automation, HVAC, energy management services, windows, doors, elevators, etc.
The Solactive Green Bond Index is a rules-based, market value weighted index engineered to mirror the green bond market. The index is calculated as a Total Return Index denominated in USD. The green bond concept was developed in 2007 by the World Bank and the European Investment Bank. Green bonds are now commonly defined as fixed-income securities that raise capital for a project with specific environmental benefits, where the proceeds go to climate mitigation or adaptation efforts.