Our Key Investment Themes for 2019
Here, our Senior Equity Analyst, Andrew Duncan, discusses the Environment and why it is a key investment theme for us in 2019.
The long-term premise for this theme encapsulates a number of key topics which include; increased regulation, resource scarcity, pollution, extreme weather, and a rapidly growing global population that is set to reach 9.6 billion by 2050, up from 7.7 billion today.
By 2030, it is estimated that the world will need 40% more water, 35% more food, and be using 30% energy meaning we will need to do more, with less.
We believe there are a number of opportunities from companies that support the $600bn global water market, for example through critical infrastructure such as pumps and water treatment facilities. We also believe there is scope from companies that indirectly improve the external environment, through things like technological innovation in equipment and improvements to chemicals.
When it comes to equipment companies, these help to reduce energy usage by making more efficient electric motors, which accounts for roughly half of all electricity consumed each year. On the chemicals side, we see opportunity in companies making innovative chemistry to allow customers across many industries to reduce energy and water consumption, saving costs and reducing companies’ ultimate environmental impact.
If you would like to discuss any of these investment ideas in more detail, please contact us.
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