Sustainable Obstacles

Enhance Your Capabilities as an Equity Investor.

Since the fourth quarter of last year, most sustainable portfolios have had a much harder time investing.

There is one thing that we are certain of, and that is the fact that the problems with sustainability that are associated with these stocks have not been eliminated.

The public health emergency that we are facing has not abated in any way.

The climatic emergency that we are facing has not diminished in any way.

There has not been much of a decline in the severity of the social crisis.

The economic difficulties that we are currently facing are, if anything, getting worse.

Therefore, the potential for these businesses to deliver solutions is not less than it was; in fact, it is more than it was.

Therefore, chances for environmentally responsible investing are still available.

But when people are less willing to take risks, like they are right now, a lot of investors tend to shorten their time horizon, even though most opportunities that will last for a long time need more time to come to fruition.

So it is our responsibility to investigate options that are more far-reaching.

Because of this, the findings of our research may differ from those of the general consensus.

That sector of the market is where most of the inefficiencies can be found.

In the past nine months, there has been no change in any of the chances for long-term sustainability.

They have not moved from their positions.

When we take a look at temperatures in different parts of the world, it is very easy to see that there is still a climate crisis that is ongoing.

There is no difference in the opportunities.

At the moment, 134 countries, which together make up 90% of the world's GDP, have agreed to work toward achieving net zero emissions by 2050.

The options to do so are still available.

There is a clear energy problem, which the conflict in Ukraine has only served to deepen.

However, one of the results of that is that Europe has made a commitment to decarbonize its economy ten years earlier than it otherwise would have.

Therefore, the opportunity to affect climate change is not diminished.

It is more extensive.

In a similar vein, the vitality of our focus on health is not diminished in any way.

This covers things like medical innovation and drug research as well as laboratory testing, all of which are still vitally needed because the COVID problem has not been resolved.

In addition to that, it covers the supply of safe food and clean water.

Again, we've seen how the global food issue is only getting worse, which is partly due to rising temperatures and partly due to global conflict. This is a problem that affects the entire planet.

We put our money into high-quality companies, and one of the traits that define those companies is fundamentally resilient business practises.

They tend to maintain their earnings better than the overall market, which is precisely what we're seeing, and they remain steady even when times are difficult. This is exactly what we're witnessing.

This year, investors in sustainable and high-quality companies have not been compensated for that, but we believe that they will be in the future.