Environmental Enterprises & Model of Resource Efficiency – Multi-regional

This project is promoting funds that invest in environmentally oriented and resource-efficient businesses. Such investments will direct more capital toward companies most aware of their environmental impact and that are seeking climate change solutions. Beginning from measuring their resource use, companies can then start monitoring and reducing it. Research shows that reducing resource use not only increases shareholder value, but also reduces the environmental footprint and helps mitigate climate change.

Fast facts:

75 to 80% reduction in environmental footprint through implementation of resource efficiency;
3,000 companies globally targeted in model of resource efficiency;
USD 150 million being invested across resource efficiency and environmental enterprises strategies.

The problem

Large global businesses are all high emitters of carbon dioxide, high consumers of water, and produce much waste. But it is not always in the best interest of stakeholders to divest from polluting industries, since many of these products and services form the backbone of modern society. Although increasing resource efficiency has been linked with higher profitability in such companies, resource consumption data – though increasingly disclosed – is non-standardized and often misunderstood. This has made it difficult to identify climate-smart measures that can also benefit productivity.

The solution

Osmosis has developed a process to standardize data and make it comparable across companies. Then, it developed investment products that allocate capital to those companies that are more resource-efficient, or that are environmental enterprises.

The model of resource efficiency selects best-in-class from all economic sectors (excluding financial), effectively selecting those companies that are drawing down the least amount of resources and adapting to future resource or climate constraints.

The two-pronged investment strategy also targets environmental enterprises, which are focused on the products and services that are leading the transition to a less carbon-intensive, more sustainable economy.

Helping the planet

The resulting portfolio has a significantly reduced carbon, water, and waste footprint. Investing in efficiency conserves energy, while directing capital to sustainable energy promotes the transition to a low-carbon economy. The investment products offered through this activity also help to conserve and maintain water, as well as reduce waste and control pollution.

Helping people

Research indicates that resource-efficient businesses tend to be more productive, including higher yields and greater return on assets compared to the market at large. Attracting investment in such businesses not only stimulates the economy, allowing economic prosperity to trickle down from shareholders, but also builds a cleaner, more reliable, and safer future for all.

Scaling up

In addition to running funds and managed accounts, this initiative has also entered into strategic partnerships and relationships with other asset managers, allowing for the products to grow in scale. With a potential $9 billion investment capacity, strong global demand is clearly present, and such investments are breaking into the mainstream. Osmosis is already looking at forming new relationships across Europe, the Middle East, and Asia. As companies become more aware of the benefits associated with resource efficiency, this may have a transformational effect on company behavior.