United StatesWe are delighted to report the latest developments in our impact metrics for the Impax Specialists and Leaders strategies, as well as sharing the impact of our Asia-Pacific strategy for the first time.
Over the past four years Impax has been publishing quantitative metrics demonstrating the environmental outcomes of the investment portfolios. Although the objective of our strategies is to achieve sustainable, above market financial returns for long-term investors, environmental benefits are a natural outcome of our investment style.
Impax Specialists strategy
(known as Impax Environmental Markets in the UK)
During 2017 the portfolio managers reduced exposure to the water treatment sector in favour of a larger exposure to companies within the materials recovery and recycling value chain. As a result, the water treated metric has fallen compared with the previous year while the waste recovered or treated metric has risen. The renewable electricity generated metric has fallen following the exit of a Chinese wind developer and a reduced exposure to a geothermal energy company. Despite this, the net CO2 emissions avoided for the portfolio remained quite similar between the two years due to the emissions avoided in the waste treatment value chain.
Environmental impact of £10m investment
| 2016 | 2017 | |
|---|---|---|
| Net CO2 emissions avoided | 7,740 tCO2 | 7,850 tCO2 |
| Equivalent to taking 4,080 cars off the road for a year in 2017. | ||
| Total renewable electricity generated | 2,920 MWh | 2,090 MWh |
| Equivalent to 520 households’ electricity consumption in 2017. | ||
| Total water treated, saved, or provided | 3,030 megalitres | 2,390 megalitres |
| Equivalent to 18,500 households’ water consumption in 2017. | ||
| Total materials recovered / waste treated | 780 tonnes | 1,330 tonnes |
| Equivalent to 1,340 households’ waste arising in 2017. |
Source: Impax Asset Management
Impax Leaders strategy
The strategy’s addition of a renewable energy developer in China, and waste management and recycling names globally, has resulted in an increase in both of these metrics in comparison to the previous year. The CO2 emissions directly attributable to utility companies, and a smaller exposure to pure water treatment companies, has resulted in decreases in the CO2 emissions avoided and water treated metrics.
Environmental impact of £10m investment
| 2016 | 2017 | |
|---|---|---|
| Net CO2 emissions avoided | 350 tCO2 | 170 tCO2 |
| Equivalent to taking 90 cars off the road for a year in 2017. | ||
| Total renewable electricity generated | 2,210 MWh | 2,640 MWh |
| Equivalent to 700 households’ electricity consumption in 2017. | ||
| Total water treated, saved, or provided | 2,670 megalitres | 640 megalitres |
| Equivalent to 4,890 households’ water consumption in 2017. | ||
| Total materials recovered / waste treated | 2,470 tonnes | 2,690 tonnes |
| Equivalent to 2,720 households’ waste arising in 2017. |
Source: Impax Asset Management
Impax Asia-Pacific strategy
Tackling urban pollution is a common theme within our global strategies, and a particular focus in our Asia-Pacific strategy. The fast pace of economic development in recent decades, effective at raising income levels and standards of living, has resulted in significant local air, water and soil pollution and an infrastructure deficit in areas such as water treatment and waste management.
The impact metrics we have chosen for the Asia-Pacific strategy reflect this local context, in considering coal displaced and its impact on urban air quality, alongside water and waste treatment outcomes.
In comparison with the Leaders and Specialists strategies the Asian impact metrics indicate a material environmental outcome, particularly in the water and waste metrics. The fossil fuel intensity of Chinese and Indian power generation (primarily coal) result in a more polluting baseline comparison for the improvements delivered by the portfolios versus our global strategies.
Environmental impact of £10m investment
Source: Impax Asset Management
For information on the impact metrics related to a specific vehicle within any of these strategies, please contact clientservices@impaxam.com or your usual sales contact.