Environmental investments in unregistered markets

The transition to a greener and more sustainable future will create new sectors and new jobs, opening up a wealth of investment opportunities.

We live in a rich and spectacularly beautiful environment that abounds in natural resources as well as investment opportunities. Green investments allow investors to preserve this global wealth by increasing the long-term value of their portfolio.

Countries and companies around the world have pledged to reduce their net greenhouse gas emissions to zero to limit global warming to +1.5°C compared to the pre-industrial era. This will mean the electrification of many aspects of modern society, which today depends on fossil fuels. Our transport networks will need efficient batteries with good capacity, powered by renewable energy sources. We will also need to use carbon removal technologies to achieve our net zero emissions goal. All these technologies exist, but they will be able to meet the energy needs only at the expense of large investments within 10 years.

We often associate pollution with air quality, but forget the more modest pollution of the water and soil we’ve contaminated with everything from carcinogenic pesticides to antibiotics and microplastics. Innovative companies are developing different solutions to preserve and restore our ecosystems, such as recycling and reusing water or optimizing waste based on artificial intelligence (AI).

A circular economy that ideally aims to eliminate waste will play an important role in creating a carbon-neutral and pollution-free future. Recycling in its current form is certainly a first step, but reuse and sharing are even more effective in optimizing the production of goods and their continued use. Solutions of this type are on the rise, as evidenced by the rapid growth of the sharing economy. New products will also increasingly be biobased, and food supply solutions will help meet the challenge of feeding the planet’s 7.9 billion people.

These innovations will be made possible by advanced technologies, from new software to innovative environmental chemistry. In this way, we can begin the transition to a sustainable economy without sacrificing our standard of living. Even better: we can even improve it.

Access to innovation through unregistered markets

The most innovative companies are usually young and rarely listed. Therefore, investors will find them in the stock markets. But these markets often involve long-term investing, making them an asset class naturally suited to the long term that characterizes revolutionary change.

At the crossroads of major trends

The fight against climate change has become one of the priorities of states and companies around the world, as evidenced by 2,671 climate laws and policies. Companies committing to climate science emissions reductions account for $38 trillion in the global economy, or one-third of global market capitalization at the end of 2021.

There have already been many successes over the past five years. There has been significant growth in the number of companies, including 46 unicorns (unlisted companies valued at more than $1 billion) in the climate technology sector, mainly in energy, agriculture and transportation, as well as green packaging and measurement carbon

Finally, consumer demand through their voices and purchasing behavior continues to grow. In the United States, Joe Biden was elected in 2020 on a strong environmental agenda. Consumers are also increasingly favoring brands that are committed to sustainability and the circular economy, particularly millennials and Gen Z, driving retailers to thrive.

There is no healthy economy without a healthy environment

Cleaner air and water means less disease and therefore less strain on global health systems, while more efficient energy use increases business profits and saves households. The transition to a greener and more sustainable future will create new sectors and new jobs to replace old ones, opening up a wealth of investment opportunities. Therefore, for investors, companies that provide environmental solutions must offer reliable performance in the long term,