Pillar 1: Clean energy
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6 pillars of the economy to making a positive impact with your investments
Thinking sustainably also means planning disposal even before production. After all, reusing resources and reducing waste are becoming increasingly important. © Getty
Our planet is facing exponentially increasing threats. Our climate is changing at an alarming rate and we’re already feeling the effects. Indispensable natural resources like clean water are becoming scarce. Waste is causing mounting issues on land and in oceans.
Structuring your portfolio based on these six impact pillars sets a solid foundation, but a few examples might help you to better understand the concept. So what kind of businesses do the six pillars lead you to?
We will introduce three companies, which represent three of our pillars: clean energy, clean water and lifecycle management.
People, politicians and international organisations are now uniting to fight climate change. With the new administration in the White House, the US will rejoin the Paris Climate Accord. In recent reports, the US administration has notified supporters that President Joe Biden will declare a goal of halving the nation’s emissions from 2005 levels as he pushes to transform vast sectors of the economy and become a leader in the global fight against climate change. A reduction of 50% by 2030 would represent a near doubling of a climate target for 2025 set by the Obama administration.
EU lawmakers have agreed, in principle, a proposal to cut greenhouse gas emissions by 55% compared with 1990 levels by the end of the decade. This is significantly more ambitious than the EU’s previous target of 40%, and means the EU region could become climate neutral by 2050.
The global community is rising to the challenge of reducing global warming. We, as investors, have the opportunity and a duty to play our part. The best way we can be a part of the solution is to do what we do best, allocate capital to companies that will prosper in an environment where improving the health of our planet makes good business sense.
Even with public, political, and legislative support:
Private sector funding is needed to propel the transformation to lower emissions.
Thematic investments are suitable for building on an already diversified portfolio. On the other hand, they are less suitable for starting diversification. Our experts explain why.
To the introduction (with panel discussion)