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, increasing demand for commodities, 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