Impact & thematic investing

“Finish your plate!” is a line often heard around dinner tables, but what if there suddenly isn’t enough food to go around? We believe the financial industry can make a humble contribution to right this wrong by investing in the “right companies”. Call this approach “putting your money where your mouth is”.

Asset owners are increasingly demanding net zero plans from their investment managers, who need to determine how to track and reduce portfolio emissions. Issues include: rebalancing vs rate of reduction, whether it’s too early for Scope 3, and ensuring engagements go beyond the more receptive European and US markets.

The circular economy, popularized by expressions such as “zero waste”, “right to repair”, or “from farm to fork”, is rooted in the knowledge that resources are finite. Companies that manage to reduce their consumption of raw materials are likely to increase their profits and market share, which will ultimately benefit investors. Past examples of corporate successes based on the circular economy include the Italian Vespa scooter.