The long-term potential
Climate change poses a real and present danger to the well-being of people and the planet. With growing recognition of the urgency of the challenge, I believe companies like the ‘SOLVERS’ are well-placed for sustainable, long-term growth.
The next decade presents a critical window in which we can still change the course of climate change. Success not only demands that we change our behaviour, but that we also invest heavily – and urgently – in the transition to a low-carbon economy.
The multi-decade global transition to reduce the impact of human activity is already underway, galvanised by efforts to shape a more sustainable recovery from the COVID-19 global downturn. In Europe, sustainability is central to the €750 billion “Next Generation EU” recovery plan, which promotes investments that cut emissions and advance renewable energy and energy efficiency.
Government support should provide a tailwind to businesses that can accelerate the transition. Even without it, wider society is increasingly pressing for more sustainable products and services.
There does not need to be a trade-off between profits and the planet. I believe that where companies can provide solutions to the climate challenge, they can present compelling opportunities for long-term investors. In turn, investors can play a part in addressing the climate emergency.
The views expressed in this document should not be taken as a recommendation, advice or forecast.
When you’re deciding how to invest, it’s important to remember that the value of investments goes up and down. So how much your investments are worth will fluctuate over time, and you may get back less than the original amount you invested.
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About Randeep Somel
Randeep Somel has managed the M&G Climate Solutions Fund since its launch in November 2020. Randeep joined M&G Investments in 2005 and managed the M&G Global Themes and Managed Growth funds between 2013 and 2017. He was appointed Associate Portfolio Manager of the M&G Positive Impact Fund in 2019 and is part of the Equity Impact Committee.