How your money could have a positive impact on the world

In our previous newsletter I introduced you to the concept of impact investing and how your money could potentially make a positive difference to the world around us. 

Last year we partnered with EQ Investors who, via their range of Positive Impact investment portfolios, actively invest in companies that aim to make a positive impact on society and the environment. 

In this edition, I thought we would showcase a couple of the companies which EQ have recently invested into and how those companies help to solve some of the biggest problems our planet faces.

Challenge: Responsible consumption and production

Electric vehicles promise a ‘zero emissions revolution’ in mobility, but there are lingering concerns on the sustainability of some of their key components, including lithium-ion batteries. Including significant quantities of heavy and often toxic metals, questions remain on how to best deal with battery disposal. 

Additionally, their initial production can cause problems, with many of its metal constituents being naturally limited in supply and/or association with human health or ecosystem damage in their mining and extraction.  

The fund which EQ invests in to challenge this issue is the Impax Environmental Markets fund which invests in companies providing solutions to help tackle environmental issues globally. Besides providing recycling solutions, the fund’s investee companies also help their clients improve the management of scarce water resources, for example by providing smart water metering technologies.

An example of a company which this fund invests in is Umicore which is a materials and recycling business that operates globally.

Challenge: Good health and well-being

Millions of people are affected by neurological disorders worldwide, including Parkinson’s disease, multiple sclerosis (MS) and Alzheimer’s disease. Globally 2.3million people live with MS, suffering from a variety of symptoms due to central nervous system damage. 

With an ageing population, the prevalence of neurodegenerative diseases is increasing and thus treatments are increasingly required. Most neurological disorders cannot yet be cured, however the quality of life and life expectancy of patients has been increasing due to recent medical breakthroughs and healthcare improvements.

The fund which EQ invests in to challenge this issue is thePolar Capital Biotechnology which focuses on companies developing and selling drugs to treat some of the most prevalent medical conditions. Many investee companies in the fund, like BeiGene and Argenx, develop advance cutting edge cancer treatments.

Challenge: Zero Hunger

Farming food and livestock currently accounts for 70% of human freshwater use. Population growth and development are placing increasing demands on agricultural outputs. The freshwater resources we currently use are not infinite and in many areas are being used unsustainably- indeed water scarcity currently affects about a third of the world’s population for at least one month per year. 

Climate change is going to exacerbate water stress in many areas where farming is only possible with irrigation, highlighting the urgent need to increase the efficiency in which we use water to grow our food. 

The fund which EQ invests in to challenge this issue is theSarasin Food and Agriculture Opportunities which favours investments into companies improving the sustainability of our global food system. Companies range from providing resource-efficient farming equipment, like Kubota Corp, to sustainably farmed seafood products like Marine Harvest.

Want to know more about impact investing?

Hopefully the above case studies help ‘bring to life’ just how your investments could contribute to solving some of the world’s biggest problems.

For a further overview of how EQ’s portfolios make a difference, why not watch the short video below:

Alternatively, if you would like to speak with me about impact investing then please feel free to give me a call or drop me an email!

The value of your investment can go down as well as up and you may get back less than the amount invested