Global asset management firm, Invesco, has announced the launch of the Invesco MSCI Green Building ETF (GBLD).
The ETF, which will be reviewed on a quarterly basis, centres specifically on the entire green building ecosystem.
The launch renders Invesco as the first asset manager in the US to license the MSCI Global Green Building Index for an ETF.
John Hoffman, head of Americas, ETFs and Indexed Strategies at Invesco, commented: “The Invesco MSCI Green Building ETF will be the first to focus specifically on the entire green building ecosystem, continuing Invesco’s track record as an ETF industry pioneer.”
According to Hoffman, the GBLD provides access to sustainable real estate and companies involved in every stage of construction, redevelopment, and retrofitting green-certified properties.
He continued: “GBLD is a great addition to our thematic environmental ETF suite, offering investors a new way to align their investments with their personal values.”
The MSCI Global Green Building Index is a subset of the MSCI Global Environment Index, designed to include companies with maximum exposure to the green building theme.
This includes companies involved in the design, construction, redevelopment, retrofitting or third-party certification of green-certified properties to effect climate change mitigation and adaptation.
Christine Berg, managing director and head of Americas Index Coverage at MSCI, explained the importance of the ETF in combatting the climate crisis: “Buildings and related construction globally have contributed 38% of carbon emissions in 2019. Green buildings are intrinsic to climate change mitigation due to their lower energy consumption.”
As we enter the decisive decade, the development and retrofitting of green buildings and infrastructure is of growing importance across the real estate sector.
A consequence of Covid-19, there is also increasing demand for good filtration systems, which represent a key component of green building ratings.
Berg added: “The MSCI Global Green Building Index comprises of leaders that have higher energy efficiency, healthier indoor environmental quality, and environmentally friendlier construction materials.”
Invesco has launched several passive products, strengthening the firms focus on the thematic sustainability space.
The firm has reportedly offered investible products that access sustainable investing themes for over ten years, now adding green building to its range with the launch of the GBLD.