Uncovering the true guardians of the environment

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Uncovering the true guardians of the environment

Industry Voice: Pictet Asset Management explains why investing to protect the planet's natural resources requires a deep understanding of industry's ecological footprint.

Once a niche activity, environmental investing is now moving firmly into the mainstream. The problem investors face, however, is that there is no universally accepted method for measuring a company's environmental footprint. Much of the environmental auditing that currently takes place is either too subjective or too narrow in scope: knowing how much carbon a business emits is useful but does not give the complete picture.

This is why the investment managers of our Pictet-Global Environmental Opportunities (GEO) strategy have developed a distinctive process that deploys a scientific, rule-based framework to measure the environmental footprint of each of the 100-plus industries that make up the global economy.

Combining two globally-recognised analytical tools - the Planetary Boundaries framework (PB) and Life Cycle Analysis (LCA) - the model is the lens we use to identify the world's most sustainable industries. 

The PB-LCA represents the initial phase of the GEO investment process, and is explained in detail below. Once this audit is complete, our investment managers then undertake company-by-company research to identify firms with products and services that can help reverse environmental degradation.

 

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The Global Environmental Opportunities strategy 

The strategy invests in the shares of companies that are making an active contribution to safeguarding the world's natural resources.  Investments are chosen from a broader universe consisting of the world's 3,500 most environmentally-responsible publicly-held firms - companies that meet the criteria of our proprietary ESG framework.

The strategy is a concentrated portfolio of 50 to 60 stocks, with investments in firms operating in fields such as pollution control, water supply, renewable energy, waste management and sustainable agriculture.  With a risk-return profile similar to that of a growth-oriented investment strategy, Pictet AM's Global Environmental Opportunities can be used to complement an equity allocation within a global portfolio.

Click here  to discover how investing to safeguard the planet no longer means sacrificing returns.

 

DISCLOSURES

This marketing material is issued by Pictet Asset Management (Europe) S.A.. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Only the latest version of the fund's prospectus, KIID (Key Investor Information Document), regulations, annual and semi-annual reports may be relied upon as the basis for investment decisions. These documents are available on assetmanagement.pictet or at Pictet Asset Management (Europe) S.A., 15, avenue J. F. Kennedy, L-1855 Luxembourg.

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Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management (Europe) S.A. has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.

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This article was a paid posting by Pictet Asset Management all views and/or opinions are those of the sponsor and not of Investment Europe.