What are green building materials?

Green building materials are construction products that are environmentally responsible and resource-efficient throughout their life cycle. These include recycled steel, sustainably harvested timber, composite materials made from waste products, energy-efficient insulation, and low-carbon cement alternatives. They help reduce the environmental impact of construction while often providing better durability and energy efficiency.

Why are sustainable building materials becoming more important?

Sustainable building materials are gaining importance because the construction industry traditionally has a massive environmental footprint, accounting for nearly 40% of global carbon emissions. As governments implement stricter environmental regulations and companies commit to sustainability goals, demand for these materials is rising. Additionally, consumers increasingly prefer eco-friendly buildings, creating market pressure for greener construction practices.

What is a REIT mentioned in this portfolio?

A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-producing real estate. In this portfolio, companies like PCH are timber REITs, meaning they own and manage productive timberlands while also operating wood product manufacturing facilities. REITs are required to distribute at least 90% of their taxable income to shareholders as dividends, potentially making them attractive income investments.

What are environmental building codes?

Environmental building codes are regulations that set minimum standards for the environmental performance of buildings. These codes cover aspects like energy efficiency, water usage, material selection, and waste management. Examples include LEED (Leadership in Energy and Environmental Design) certification requirements, California's Title 24 energy standards, or the International Green Construction Code. These regulations increasingly mandate the use of sustainable materials, boosting demand for the products made by companies in this portfolio.

17 handpicked stocks

Green Building Blocks

Invest in the companies creating essential materials for tomorrow's sustainable buildings. These carefully selected stocks represent producers of eco-friendly building components poised to benefit from stricter environmental codes and growing demand for green construction.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17