Investment Strategy:

KGRN is benchmarked to the MSCI China IMI Environment 10/40 Index, which provides exposure to Chinese companies that focus on clean technology and contributing to a more environmentally sustainable economy. The Index is comprised of securities that derive at least 50% of their revenues from environmentally beneficial products and services. The Index is based on five key Clean Technology environmental themes: Alternative Energy, Sustainable Water, Green Building, Pollution Prevention and Energy Efficiency. Constituent selection is based on data from MSCI Environment, Social, and Governance (ESG).

China’s Environmental Protection Highlights:

• China is the world leader in total renewable energy capacity, contributing to roughly half of all installations in 2020. Additionally, China added nearly 117 GW of renewable power in 2020, introducing more capacity in one year than the entire world did in 2013 and almost doubling additions in 2019¹
• China budgeted $360 billion for renewable energy investments from 2017 to 2020² and plans to have renewable energy account for 35% of its electricity consumption by 2030³
• Meeting these standards would create as much new renewable energy capacity as the entire US electricity system⁴, and China would represent half of the world’s green building floor space⁵
• China has a proven track record of achieving ambitious long term renewable energy goals set forth within The Five Year Plan.

KGRN Features:

• Access to China’s fast-growing environmental protection industry that has rapidly become the largest renewable energy market in the world¹
• Exposure to companies that stand to benefit from China’s increased focus and spending on clean energy technologies
• Benchmarked to an MSCI ESG Index: MSCI is the #1 index provider for Socially Responsible Investment (SRI), Corporate governance, and ESG indexes according to a 2015 survey of 1,200 participants conducted by SRI Connect and Extel.

*Formerly the KraneShares MSCI China Environment Index ETF

1.) REN21’s Renewables 2021Global Status Report (GSR), retrieved 9/30/2021.
2.) Michael Forsythe, “China Aims to Spend at Least $360 Billion on Renewable Energy by 2020”, The New York Times, 1/5/2017. Retrieved 9/30/2021.
3.) Bloomberg, “China Steps Up Its Push Into Clean Energy”, 9/26/2018, retrieved 9/30/2021.
4.) US Energy Information Administration, “What is U.S. electricity generation by energy source?”, 10/29/2018, retrieved 9/30/2021.
5.) UTC, Accelerating the World’s Largest Green Building Market: China. Oct. 4, 2016, retrieved 9/30/2021.