Sustainable investing and SWFs
Government-owned institutions are becoming big drivers of sustainable investing — or buying firms which are socially and environmentally responsible, or sectors which tackle climate change or resource scarcity.
Norway’s $400-billion-plus sovereign wealth fund, which is the world’s second largest, is a big advocate of “green” investing, naming and shaming companies which do not fit the investment guidelines set by the government.
The guidelines rule out holding investments in certain firms, for instance those that produce nuclear arms or cluster munitions, or that damage the environment or abuse human rights.
It has just expelled Israel’s Elbit Systems for supplying surveillance equipment for the West Bank separation barrier.
RCM, equity-management arm of Allianz Global Investors, says that sustainable investment is gaining momentum and offers investors a unique diversifier.
RCM’s sustainability investment fund, which has the French public pension scheme ERAFP among its clients, likes firms which manage Environmental, Social and Governance (ESG) risks or sectors which are engaged in trends such as demographic trends, climate change (eg solar power) or resource scarcity.
Water investments
A growing number of Investors, including state-owned funds, are looking to invest in water to benefit from efforts to tackle climate change.
According to multi-asset manager Armstrong Investment Managers, less than 0.01 percent of water is easily accessible freshwater and global water use has tripled since 1950 — increasing faster than the world’s population.
“Demographic and climate changes will lead to two thirds of the population inhabiting areas with scarce water,” the firm says.
Armstrong likes water equipment and water treatment stocks and water utilities as these should benefit from sustainable growth opportunities.
Norway’s $350 billion sovereign wealth fund is aiming to invest 20 billion crown ($3.24 billion) investments over the next five years into water and other environmental technologies, such as carbon-capture storage and waste and pollution management.
The Norwegian fund says water was an important input or production factor for about 1,100 companies in its, whose combined market value is some $43 billion.
its very exciting news.indian leading firm should also invest in water management
