We recommend investors consider sustainable investments in portfolios since we believe there are three key cyclical and policy supports for sustainable investing this year.
First, a more accommodative monetary policy environment, and more near-term visibility, should increase business investment confidence in areas tied to sustainability. Given our base case of a soft landing with below-trend growth and projected rate cuts, we see investment opportunities in select quality stocks and smaller cap companies.
- Quality tilt – ESG leaders focus on managing sustainability-related risks and capturing opportunities.
- Small- and mid cap focus – Management teams within smaller companies are typically more amenable to engaging in and offering improvements to sustainability issues that can affect corporate financial performance.
i(x) Net Zero plc (LON:IX) is an investing company which focusses on Energy Transition and Sustainability in the Built Environment, and was founded in 2015 by Trevor Neilson, Pär Lindström and Howard W. Buffett.