Frankfurt-based index provider Solactive writes that as momentum builds in global climate policy, developing and retrofitting green buildings and infrastructure are quickly becoming an important sector of real estate.
Frankfurt-based index provider Solactive writes that 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 fundamental to climate change mitigation policies as innovative technology, like artificial intelligence and engineered wood, allow buildings to reduce their environmental impact through lower energy consumption.
Solactive has now announced that Global X has chosen the Solactive Green Building Index for its new Green Building ETF.
The ETF aims to track 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:
1. 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.
2. Green Building Management: Companies that manage and/or operate buildings that have obtained a green certification.
3. 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.
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “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.”
