Thematic investing is a great way to connect with sustainability issues, because it directly addresses what we see and face every day, a delegate at last month’s Global ESG Summit commented following a panel discussion on the topic.
The panellists appeared to agree, discussing the benefits of using thematics and the UN Sustainable Development Goals as a way into conversations about sustainability with clients, and meeting their values and needs.
However, liquidity issues, a narrow universe and recent turmoil has plagued this type of sustainable investing, with thematic equities, which includes areas such as water, clean energy, agriculture, ecology and healthcare, all underperforming this year.
Despite this, over the long term, we know how important these themes will be for a sustainable future. For example, “where and how we consume food is one of the biggest human cost threats to biodiversity and our ecosystems,” Margaret Kuhlow, global finance practice leader at WWF International, said in her keynote speech at the Global ESG Summit.
Here, ESG Clarity takes a look at five of these key themes – food, water, clean energy, social housing and healthcare – and speaks to investment experts in each area about the challenges and opportunities they are seeing.
Read the full cover feature in ESG Clarity’s July 2022 digital magazine.