Invesco Ltd., a global asset management firm that has been leading sustainable investing1 for over 15 years2, announced that it has expanded its market leading, thematic environmental ETF suite with the launch of Invesco MSCI Green Building ETF (GBLD).
“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. GBLD provides access to not just sustainable real estate, but companies involved in every stage of construction, redevelopment, and retrofitting green-certified properties,” says John Hoffman, Head of Americas, ETFs and Indexed strategies at Invesco. “GBLD is a great addition to our thematic environmental ETF suite, offering investors a new way to align their investments with their personal values.”
With the launch of GBLD, Invesco expands its relationship with MSCI and will be the first asset manager in the US to license the MSCI Global Green Building Index for an ETF.
As momentum builds in both US and global climate policy, development and retrofitting green buildings and infrastructure is quickly becoming an important sector of real estate. Green buildings are fundamental to climate change mitigation policies as innovative technology, like artificial intelligence, allows buildings to reduce their environmental impact through lower energy consumption.
The efficiency and sustainability of a building are also vital to a world still adapting to the implications of the Covid-19 pandemic. There is an increased desirability for good filtration systems, which are a key element of green building ratings. Many of the important ESG measures that factor into MSCI’s green building assessment are essential to the conversation around the potential future shift of building usage.
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. The index is reviewed on a quarterly basis and any changes are implemented on the last business day of February, May, August and November.
“We are excited that Invesco has chosen the MSCI Global Green Building Index to expand its thematic ESG suite,” said Christine Berg, Managing Director and Head of Americas Index Coverage at MSCI. “Buildings and related construction globally have contributed 38% of carbon emissions in 20193. Green buildings are intrinsic to climate change mitigation due to their lower energy consumption4. The MSCI Global Green Building Index comprises of leaders that have higher energy efficiency, healthier indoor environmental quality, and environmentally friendlier construction materials. The MSCI Global Green Building Index is comprised of companies whose offerings conserve natural resources, are made with recycled waste, avoid toxic emissions, save water and energy or contribute to a safe, healthy built environment.”
Invesco continues to strengthen its overall focus on the thematic sustainability space, both through its growing suite of passive products and a commitment to incorporating important sustainability and governance issues in its active strategies. Invesco has offered investible products that access sustainable investing themes for over a decade and can now add a green building with the launch of GBLD.
1 Invesco is currently ranked #2 in ESG ETF AUM in the US with a market share of 11.7% (as of 12/31/20).
2 Invesco WilderHill Clean Energy ETF (PBW) launched on March 3, 2005.
3 This includes non-residential buildings, residential buildings, and the buildings construction industry. Source: United Nations Environment Programme. 2020 Global Status Report for Buildings and Construction: Towards a Zero-emission, Efficient and Resilient Buildings and Construction Sector.” Nairobi.
4 Lucon O., et al, IPCC Fifth Assessment Report, Chapter 9, Cambridge University Press, 2014.
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. Invesco managed US $1.35 trillion in assets on behalf of clients worldwide as of December 31, 2020.