Zurich-headqueartered responsible investment firm RobecoSAM has renamed the RobecoSAM sustainable agribusiness strategy to RobecoSAM sustainable food equities strategy with immediate effect.
The new name reflects the strategy’s focus on investing in companies along the entire food value chain that are building a more sustainable food system by addressing the most critical issues around resource scarcity, food supply, and demographic changes. The strategy continues to be managed by Holger Frey and is tailored to investors looking to create positive impact while generating competitive returns.
Creating positive social impact by harvesting opportunities along the entire food value chain
The food sector is undergoing a radical transformation. Demand for food is increasing (70% more food will be required to feed the global population by 20501), there are marked shifts in consumption trends (66% of consumers are willing to pay more for sustainable goods2), and food science and technology are becoming increasingly important productivity drivers (AgTech is core to delivering a 70% increase in global crop production by 20503). These significant changes bring with them attractive investment opportunities along the entire food value chain.
The RobecoSAM sustainable food equities strategy aims to identify and invest in market leaders with innovative business models that are at the forefront of the food sector transformation. Specifically, the strategy invests in food security, production & logistics, sustainable processing and food consumption companies that are building a more sustainable food system. An investment in the fund also means investing in companies that contribute to achieving the UN’s Sustainable Development Goals (SDGs) such as SDG 2 “zero hunger”.
ESG integrated investment process
The investment team behind the strategy comprises of an experienced group of thematic investing specialists and RobecoSAM SI research analysts. By combining RobecoSAM thematic research expertise with SI analysis, ESG criteria are fully integrated along the investment process across key sustainable food areas. Specialised SI screens for the food sector that assess extra-financial data (e.g. animal welfare) are applied as part of the due diligence process. The result is a well diversified, but concentrated portfolio across the entire sustainable food value chain.
By collaborating closely with SI research analysts, the strategy’s investment management team places emphasis on having constructive dialogues with food companies to encourage sustainable practices. Engagement themes include: food security, social issues in the food and agribusiness supply chain, and improving sustainability in the meat and fish supply chain.
The RobecoSAM sustainable food equities strategy is benchmarked against the MSCI World Index TRN.