Page 39 - Monaco Economy 119

UBP: Investing for Profitable Positive

Impact

Rupert Welchman, Portfolio Manager Impact Equities at Union
Bancaire Privée (UBP)

fund managers can share best practice to help Combined, these areas represent 25% of global
raise standards more broadly. Excitingly, impact greenhouse gas emissions. Trane now partly
opportunities are not limited to the well-known bases compensation of its 2,300 top executives
areas of green energy but instead cover a broad on sustainability indicators. At corporate level,
spectrum of industries including healthcare Trane has set a target of saving its customers
equipment, safety certification, education, a gigaton of CO2 by 2030 through the use of
infrastructure and agriculture. This breadth of its products.
opportunity gives impact funds an evergreen
quality making them an ideal building block for Finally, there is a group of unsexy impact
any long-term investor. companies that don’t often get a mention, the
Rupert Welchman ‘brass from muck’ waste processors. As the
How we live our lives and how we choose to We often find attractive impact opportunities in circular approach displaces our traditionally
invest our savings have typically been worlds established companies that are culturally pivoting linear relationship with the planet, recycling is
apart. Happily, it has recently become possible to towards the beneficial outcomes generated by a growing source of value for investors. This
bring these two elements much closer together. their products. One example is Signify (LIGHT NA) opportunity extends far beyond civic refuse
There’s a growing number of listed companies that – the lighting giant spun out of Philips in 2016. processing. One example is Befesa (BFSA
are working hard to understand their place in the The company combines industry leadership in SM). The business is focused on the industrial
world beyond simple profit. Business leaders have the global shift to LED lighting with a corporate recycling of hazardous waste generated in steel
a better chance of building strong foundations strategy focused on net zero carbon emissions, and aluminium manufacturing. Befesa’s process
for equity returns when they understand that they zero waste to landfill and a portion of employee diverts toxic material entering landfill and their
can only deliver sustainable profits in the long pay related to sustainability targets. end products can be used in cement, ceramics
term by respecting the environment in which and insulation instead of virgin ingredients.
they operate and the people their organisations Another name enjoying rejuvenation by combining
touch. Positive impact as an investment strategy megatrend leadership with a deep focus on These examples go to show that sustainability
builds on this growing corporate self-awareness sustainability is Trane (TT US). Spun out of and a positive impact can and do go hand in
by championing companies that provide fixes Ingersol Rand, Trane’s strategic goal ‘Win hand with profitability, and investing in these
to problems which, left unattended, will cost through Sustainable Innovation’ focuses on new industry leaders offers the prospect of
the planet more dearly in the future. Impact ventilation (HVAC) and refrigeration systems. multiple benefits.

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