Investing Globally in Resource Efficiency

We believe that portfolios of companies providing cleaner, more efficient products and services across the energy, water, waste, food, and agriculture sectors offer investors strong long term risk-adjusted returns.

Why Resource Efficiency Markets?

From the time of Malthus, concerns that the supply of energy, water, food, materials and other resources would fail to meet the needs of a rising world population have been misfounded.  However, recent rapid expansion of the emerging markets middle class, soaring commodity prices and rising costs of extraction mean that we have now reached a tipping point beyond which the availability and price of these resources is likely to restrict access unless there are significant improvements in the efficiency of supply and use.

Meanwhile, there is mounting evidence that depleted environmental resources such as clean water, clean air and arable land are limiting the potential for economic growth in many countries. At the same time, losses from weather related events have increased sharply.

Improvements in efficiency have historically underpinned enhancements to productivity and boosted economic growth. Today's falling costs of technology, liberalisation of basic service industries, and policies designed to mitigate environmental damage, mean that a revolution in efficiency is now underway that is creating unprecedented opportunities for the private sector.

The result is a diverse set of companies offering cleaner, more efficient products and services across the energy, water, waste, food, and agriculture sectors, referred to as the "Resource Efficiency" markets.

Please click here to read more Resource Scarcity and the Efficiency Revolution.

 

Dramatic changes over the past 10 years underpin the resource efficiency markets - click below to find out more:


Global Challenges
Increased consumption Resource scarcity Pollution
  • Population pressure: World population has increased from 6.2bn to 7.0bn

  • Higher living standards: Middle class population has increased from 900m to 1.1bn
  • Fossil fuel price increases: Oil prices have increased from US$25 per bbl to US$85 per bbl

  • Commodity price increases: Price of scrap steel has risen 580%
  • Local air pollution: Over 10 million people have died from preventable air pollution

  • Contaminated land: 350m tonnes of hazardous e-waste generated from electronic and electrical equipment
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Global Responses
Falling costs of new technology Tightening environmental policy Corporate activity
  • LED costs fallen by 90% US$0.01 per lumen

  • Solar installation costs fallen ca. 60%, global cumulative installed capacity increased 35x from 628 thousand to 22m households
  • 55 countries had policies or targets in 2005, 100+ in 2010

  • EU:2005 - Emissions trading scheme launched, 2009 - 20% EU renewables target by 2020

  • China: 5-Year Plans a strong driver of investment into environmental sector
  • More than 40 IEM holdings acquired

  • Average multiple 13.3x EV/EBITDA

  • Re-rating of remaining holdings