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KGHG - KraneShares Global Carbon Transformation ETF

KGHG - KraneShares Global Carbon Transformation ETF

KGHG is an actively managed ETF that aims to capture the low-carbon leaders of the future. KGHG focuses on companies in traditionally high emissions industries that are on the cusp of the transition away from fossil fuels to renewable technology. Companies in high impact industries that have a stated commitment and demonstrated action towards decarbonization may see superior growth compared to their peers as well as potentially benefit from a reevaluation and improved environmental, social and corporate governance (ESG) score.

 

  • Global energy demand will grow 50% by 20501 and 80% of the world’s energy use is still fossil fuels.2 If we continue on this track scientists predict we could see catastrophic flooding and extreme weather events that could make large portions of the earth uninhabitable.
  • Decarbonizing operations is becoming increasingly important as pressure for companies to address climate change intensifies.
  • Three core drivers of decarbonization include: greater policy reforms around regulating emissions, increasing inflows into ESG and impact investments, and technological advancements driving down costs for renewables.
  • Sectors with high emissions will face substantial impact on demand, production cost, employment and cost of capital as the cost of CO2 emissions rises.
  • Green capital expenditure is an emerging multi-decade secular theme that is crucial in facilitating the decarbonization transition across industries. This significant increase in infrastructure spending will create investment opportunities.