Environmental investment in non-listed markets

The transition to a greener and more sustainable future will create new industries and new jobs, opening up many investment opportunities.

We live in a rich and strikingly beautiful environment, teeming with natural resources but also with investment opportunities. Green investing allows investors to preserve this planetary wealth while increasing the long-term value of their portfolio.

Governments and companies around the world have pledged to reduce their net greenhouse gas emissions to zero to limit global warming to +1.5°C above pre-industrial times. This will mean the electrification of many aspects of modern society that today depend on fossil fuels. Our transportation networks will need efficient, high-capacity batteries powered by renewable energy sources. We will also need to use carbon removal technologies in order to achieve the goal of zero emissions. All of these technologies exist, but they will only be able to meet energy demand through massive investment within 10 years.

We often associate pollution with air quality, but forget about the more subtle pollution of water and soil, which we pollute with everything from carcinogenic pesticides to antibiotics to microplastics. Innovative companies are developing various solutions to conserve and restore our ecosystems, such as recycling and reusing water or optimizing waste based on artificial intelligence (AI).

The circular economy, which ideally aims to eliminate waste, will play a vital role in creating a carbon neutral and clean future. Recycling in its current form is certainly the first step, but reuse and sharing is even more effective in optimizing the production of goods and extending their useful life. Solutions of this type are on the rise, as evidenced by the rapid growth of the sharing economy. New goods will also increasingly be bio-based, and food supply solutions will help meet the challenge of feeding the world’s 7.9 billion people.

These innovations will be made possible by cutting-edge technologies, from new software to innovative green chemistry. In this way, we will be able to initiate 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 tend to be young and rarely listed on the stock exchange. Therefore, it is in unregistered markets that investors will find them. But these markets are often long-term investments, which makes them an asset class naturally suited to the longer timescale that revolutionizes.

At the crossroads of major trends

The fight against climate change has become one of the priorities of governments and businesses around the world, as evidenced by 2671 laws and policies related to climate. Companies that commit to cutting emissions in line with climate science account for $38 trillion in the global economy, or one-third of the 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 company formation, including 46 unicorns (non-listed companies valued over $1 billion) in the climate technology sector, primarily in energy, agriculture and transportation, and in sustainable packaging and carbon metering .

Finally, consumer demand, driven by their voices and buying behavior, continues to rise. In the United States, Joe Biden was elected in 2020 on a strongly environmental agenda. Consumers, especially millennials and Generation Z, are increasingly choosing brands that are committed to sustainable development and the circular economy, thereby pushing retailers to develop.

There is no healthy economy without a healthy environment

Cleaner air and water means fewer diseases and thus offloading global health systems, while more efficient energy consumption increases business profits and household savings. The transition to a greener and more sustainable future will create new industries and new jobs that will replace old ones, opening up many investment opportunities. Therefore, for investors, companies offering environmental solutions must offer stable results in the long term,