3 . Government action
Environmental sustainability is also benefiting from governments’ policy changes, such as the recent pledges by China to reduce CO2 emissions. This is in part being driven by new monitoring technologies, which are helping in the production of reports such as The World Health Organization’s Air Quality Index (see below).
Global levels of urban ambient pollution*
*Air quality is represented by annual mean concentration of particulate matter, smaller than 2.5 micrometers, per m3. Reference: World Health Organization, 2016
Recent reports have stated that over 7 million people died prematurely as a result of air pollution in 20123. Such statistics have contributed to the rise of multilateral environmental agreements, of which the cumulative total reached 1,100 by the end of 20124. Companies that recognise and support consumers’ and governments’ environmental shifts are likely to benefit and represent attractive long-term opportunities for investors.
Environmental spending in China: waging a “war on pollution”
Investing for a sustainable future
Environmental issues are now a matter of global importance. Companies that provide effective products and services that increase resource efficiency and minimise pollution are well placed to grow strongly. In our view, by investing in these firms, investors can make a positive contribution towards a more sustainable world, as well as generating attractive capital gains.
Dr Marc-Olivier Buffle, Senior Product Specialist, Pictet-Global Environmental Opportunities Fund
Note: *Landfills are the third-largest man-made source of methane.
[1] Internet World Stats
[2] United Nations Framework Convention on Climate Change
[3] World Health Organization
[4] International Environmental Agreements Database
Pictet-global environmental opportunities at a glance
• Invests exclusively in companies solving global environmental challenges such as pollution control, water supply, renewable energy, waste management and sustainable agriculture. The fund is also a good option for those who don’t want to invest in sectors such as oil and gas or mining.
• The fund invests in the world’s most environmentally responsible public companies – those with a small environmental footprint and that are building products or services that have a positive impact on the environment.
• We believe the fund could be a good alternative to traditional global equity funds for this portion of an investors’ portfolio and for those who want to benefit the environment whilst investing.
