Doing Well while Doing Good
Invest in the global opportunities from companies providing solutions for environmental issues
In 2020, Environmental, Social & Governance (ESG) related investments received record inflows as the COVID-19 crisis reminded policymakers and investors of the importance of long-term sustainable goals, on top of financial profits. With this paradigm shift, the sustainable investing trend is here to stay – in 2021 and beyond.
One of the most pressing global ESG issues is climate change. To tackle global warming, many countries, including the US and China, have announced the mid-century net zero carbon emission targets. In addition to the support from policymakers, companies in the environmental sector are also benefiting from rapid technology advancements as they come up with new solutions to drive energy transition and to provide sustainable resources.
Investors may consider managers like BNP and their partner Impax who are fully dedicated to the space with a diversified opportunity set and long demonstrable track records.
BNP Paribas Global Environment Fund
What are the key characteristics of this fund?
- Active, high conviction portfolio of 40-60 companies capturing opportunities in New Energy, Water, Sustainable Food & Agriculture, and Waste & Resource Recovery.
- Bottom-up selection of innovative mid to larger cap companies with solid fundamentals, and strong growth potential. There is a notable mid-cap bias.
- While overweight in the “Old Economy” sectors of: Industrials, Materials & Utilities, their focus is on innovative solutions that create energy efficiency, sustainability and a healthier environment.
Why this fund?
- An ESG specialist: Impax is a specialist with over 20 years of experience in sustainable strategies and the firm’s $34 billion of AUM all belong to this asset class.
- Strong performance with positive impact: Incepted in 2008, the product has generated decent returns for investors. The fund has outperformed MSCI World by more than 200bps (annualized) over the last three years.
- Diversified exposure to the Environmental market: With 4 main themes and over 20 sub-themes, the fund captures the rapidly expanding investment universe while providing exposure to both cyclical and defensive stocks.
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*All investments come with risks and you can lose money on your investment. Invest only if you understand and can monitor your investment. Diversify your investments and avoid investing a large portion of your money in a single product issuer.
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