As we approach World Ocean Day on 8 June, investors have an important opportunity to review the positive impact they can have on biodiversity and the environment via their savings, says Louie French, manager of the Tilney Sustainable MPS.
Both World Ocean Day and the recently celebrated World Environment Day have been established by the United Nations to raise awareness of the major environmental challenges that we face to restore the health of our planet.
These include prominent issues such as climate change and plastic pollution, which are threatening life on land and in our oceans.
For example, the UN estimates that climate change and unsustainable fishing have already resulted in the depletion of 90% of big fish populations and the destruction of 50% of coral reefs.
It is clear that as a society we have to act now. There is no planet B, as the Attenborough and Thunberg inspired placards have highlighted at demonstrations across the world in recent years.
The good news from an investment perspective is that we now have positive choices that we can make with our savings to encourage the greening of our cities and energy sources; to support companies that are promoting a more circular economy and are cleaning up the plastic pollution in our rivers and oceans; and to invest in a more sustainable future for all.
At Tilney, we believe that the key themes associated with sustainability are now the mainstream for businesses and consumers, and they provide an attractive investment opportunity as the global economy becomes more focused on sustainability.
Our Sustainable Portfolios, which include the Tilney Active Sustainable Portfolio - 2021 winner of the Best ESG Strategy at the City of London Wealth Management Awards, are designed to support the United Nations' 17 Sustainable Development Goals for 2030 and we invest in companies and funds that are having a positive impact on the planet.
Below are three funds we hold in the Tilney Sustainable MPS which play the sustainability theme:
Impax Environmental Markets - The trust invests globally in companies that provide environmental solutions through their products or services. The trust's objective is to enable investors to benefit from growth in the markets for cleaner or more efficient delivery of basic services of energy, water and waste.
The main investment themes of the portfolio are clean energy and energy efficiency, water treatment and pollution control, waste technology and natural resource management and sustainable food, agriculture and forestry. Impax have a strong performance track record and are well respected specialists in this area of the market. They also report the positive impacts of their investments in the annual report, which include net CO2 emissions avoided, renewable energy generated and the treatment for waste and water.
WHEB Sustainability - WHEB are specialist investors that seek to have a positive impact on the environment and society. The objective of the fund is long-term capital growth via a portfolio of global companies, which have strong growth prospects linked to key sustainability growth themes.
The nine themes WHEB seek broad exposure to are environmental services, resource efficiency, water management, sustainable transport, cleaner energy, safety, health, wellbeing, and education. Investors in WHEB are able to access their online Impact Calculator, which illustrates the underlying positive impact that companies in WHEB's investment portfolio help create.
The Renewables Infrastructure Group (TRIG) - TRIG is a London-listed (FTSE 250) investment company which has over 75 renewable infrastructure projects in the UK, Ireland, France, Sweden and Germany. TRIG aims to deliver a sustainable yield on a diversified portfolio of predominately wind and solar assets across a number of distinct geographies.
It provides shareholders with diversification by jurisdiction, power market, energy source and weather system. TRIG contributes to a zero-carbon future with a portfolio capable of saving more than 1.2m tonnes of CO2 emissions annually by powering over 1.1m homes. This investment is aligned to UN SDGs 7, 11, 13 and 15.
Louie French is manager of the Tilney Sustainable MPS
Sustainable Investment Festival, 22-25 June
International Investment's parent company Incisive Media will host its inaugural Sustainable Investment Festival this summer, featuring keynote speakers, innovative breakout events and sessions including contributions from RL360, KBI Global Investors and deVere Group to help investors navigate this rapidly-evolving area of the market. Click here for more information.