pf_humans-tree

Conserving
natural resources

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N. FUNDS WITH 5 STARS
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FUNDS INVOLVED
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FUNDS ANALYZED

How can I take action?

What is at stake

Thecircular economy can be defined as an economic system that exploits and reuses its resources with the aim of extending their life cycle as long as possible. It mainly consists of reusing a product that has reached the end of its life cycle and reintroducing it into the economic cycle.

The circular economy is therefore crucial to saving natural resources as it strongly encourages the use of sustainable raw materials, is based on the reuse and recycling of waste and products that have outlived their usefulness and is the basis for renewable energy.

Sustainability objectives

Every year, human activity weighs more than twice as heavily on the earth's natural resources as nature's capacity to regenerate: deforestation, soil depletion, overfishing, pollution in the extraction of non-renewable raw materials are just a few among thousands of examples.

The goal of sustainability to be achieved through resource saving and the circular economy is a return to a balance between what the Earth provides us with and what we consume each year.

Investors play a key role by supporting both entrepreneurs who approach natural resource-related economic activities with responsibility and Society who integrate circularity into their business model, i.e. by integrating issues related to recyclability and reparability of their products, precision manufacturing while avoiding waste, energy transition and who are careful to reduce the use of non-renewable raw materials in their production process.

Management strategies

Sustainable fund managers use different management strategies:
The Exclusion Approach: many funds have approached the issue by excluding sectors and activities that are not responsibly managed - for example, forestry and fisheries. Sometimes they have banned energy and raw material extraction, or furs.
Thematic approach: there are specialised funds dedicated to the circular economy and sustainable natural resources. They operate in the primary sector (agriculture, aquaculture), secondary sector (industry, automation and recycling) and tertiary sector (service models, recycling and use of electric vehicles, etc.).
The Regulatory Approach: the funds make particular reference to the Convention on Biodiversity reviewed annually by the 196 signatory parties gathered in the COP; many criteria are used, e.g. the adhesion of Society in Portfolio to sustainable sector labels (fishing, agroforestry, etc.).
Best practice - impact investing: the most advanced 'impact' funds use the UN or GIIN criteria, i.e. all-encompassing impact evaluation standards, covering all extra-financial aspects, to measure the quality of the Society where they invest.

We have currently identified 90 criteria to qualify fund action with respect tocircular economy andresponsible use of natural resources. We find here a prevalence of strategies assessing ESG Impact and Screening carried out by Society management with an ESG Risk however present for important issues such as assessing possible greenwashing and other controversies.

At the Impact level, many Society have strongly focused on water and energy issues, and this is a good step forward.
At the Screening level, we can see that the bulk of mutual funds use mostly exclusionary strategies (fur, nonrenewable energy, commodities).

As the circular economy is a theme that cuts across all sectors of activity, our ranking takes into account both the thematic funds closely related to nature and the thematic funds dedicated to the efficient use of resources in industry and commerce.

The adverse impacts

the Circular Economy is a strategic sector for Europe, as the continent is not particularly rich in raw materials, and Europe promotes initiatives aimed at ensuring the availability of the natural resources needed by the European economy. It also mandates curbing damage to the environment resulting from its economic activities.

The European Union requires sustainable funds to measure:

  • Emissions to water:
    Tons of water emissions generated by Society investees per million invested, expressed as a weighted average.
  • Share of hazardous waste:
    Tons of hazardous waste generated by Society investees per million invested, expressed as a weighted average.

In addition, the European Union advises sustainable funds to quantify:

  • Water use and recycling:
    The average amount of water consumed and purified by Society investees (in cubic meters) per million euros of revenue of Society investees.
  • Investment in companies without water management policies.:
    The share of investments in Society investees without water management policies.
  • Exposure to areas of high water stress:
    The share of investments in Society investees with sites located in high water stress areas without a water management policy.
  • Non-recycled waste ratio:
    Tons of non-recycled waste per million invested.
  • Waste generation in operations:
    The share of real estate not equipped with waste sorting facilities and not covered by a waste recovery or recycling contract.
  • Raw material consumption for new construction and major renovation:
    The Share of raw building materials (excluding recovered, recycled, and organically sourced) in the total weight of building materials used in new construction and major renovation.
Insights

The Responsible Use of Natural Resources (en)

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The 5 most profitable sustainable equity funds intent on preserving natural resources :

type_name_en Classification instrument_id isin masterisin Fund Currency ESGAP class_type Theme Cod_impact Area Intensity Performance Risk Performance 6 months Performance 1 year Performance 3 years
Equity Japan equities 39.043 LU0968254713 LU0968254713 jpmorgan japan sustainable equity USD 5 Open-end mutual funds SDGE2 Environment 5 5 1 21,04 46,75 68,64
Equity Japan equities 78.817 FR0011597459 FR0011597459 CPR Japan EUR 5 Open-end mutual funds SDGE2 Environment 5 5 3 20,83 50,23 61,90
Equity Japan equities 43.214 LU0950372325 LU0950372325 bnp paribas funds japan equity USD 4 Open-end mutual funds SDGE2 Environment 5 5 1 15,84 48,19 81,57
Equity Emerging Markets Equity - Latin America 15.654 LU0201576070 LU0201576070 amundi funds latin america equity USD 5 Open-end mutual funds SDGE2 Environment 5 5 1 11,97 39,85 55,93
Equity Sector Equities - Technology 73.466 LU2181906269 LU2181906269 sycomore sustainable tech EUR 5 Open-end mutual funds SDGE2 Environment 5 4 2 39,38 57,74 33,74
Equity Sector Equities - Technology 2.363 AT0000688858 AT0000688858 raiffeisen capital manag. equity technology EUR 4 Open-end mutual funds SDGE2 Environment 5 4 1 35,05 48,67 34,63
Equity International equities 71.119 AT0000A261L7 AT0000A261L7 raiffeisen capital manag. paxetbonum-aktien EUR 5 Open-end mutual funds SDGE2 Environment 5 4 1 29,60 42,01 42,46
Equity International Equity - Growth 45.425 LU1218204631 LU1218204631 invesco global opportunities USD 3 Open-end mutual funds SDGE2 Environment 5 4 1 28,53 45,97 55,67
Equity U.S. Equity - Growth 28.297 LU0823435044 LU0823435044 bnp paribas funds equity usa growth USD 3 Open-end mutual funds SDGE2 Environment 5 4 1 25,80 39,68 52,55
Equity European Equity - Growth 74.284 IE00BK5X3V56 IE00BK5X3V56 comgest growth europe plus EUR 5 Open-end mutual funds SDGE2 Environment 5 4 2 24,01 25,70 45,88

The 5 most profitable bond funds intent on preserving natural resources :

type_name_en Classification instrument_id isin masterisin Fund Currency ESGAP class_type Theme Cod_impact Area Intensity Performance Risk Performance 6 months Performance 1 year Performance 3 years
Bond Maturity Bonds 51.024 LU0393655021 LU0393655021 fidelity funds target tm 2035 euro EUR 4 Open-end mutual funds SDGE2 Environment 5 4 1 14,36 19,77 16,21
Bond Maturity Bonds 51.025 LU0393655294 LU0393655294 fidelity funds target tm 2040 euro EUR 4 Open-end mutual funds SDGE2 Environment 5 4 0 14,36 21,32 20,16
Bond Maturity Bonds 51.032 LU1025014892 LU1025014892 fidelity funds target tm 2050 euro EUR 4 Open-end mutual funds SDGE2 Environment 5 4 0 14,35 21,96 21,32
Bond Maturity Bonds 51.031 LU1025014462 LU1025014462 fidelity funds target tm 2045 euro EUR 4 Open-end mutual funds SDGE2 Environment 5 4 0 14,34 21,95 21,31
Bond Subordinated Bonds 27.228 LU0772943501 LU0772943501 nordea 1 european financial debt EUR 5 Open-end mutual funds SDGE2 Environment 5 4 4 10,15 18,94 2,39
Bond Bonds Europe - High Yield 70.489 LU1927799012 LU1927799012 nordea 1 european high yield stars bond EUR 5 Open-end mutual funds SDGE2 Environment 5 4 3 8,93 15,35 4,69
Bond Subordinated Bonds 39.513 LU1261433038 LU1261433038 fidelity funds global hybrids bond EUR 5 Open-end mutual funds SDGE2 Environment 5 4 3 8,38 18,41 3,30
Bond Bonds Europe - High Yield 3.649 FR0000443343 FR0000443343 societe generale gestion sg oblig europe high yield EUR 5 Open-end mutual funds SDGE2 Environment 5 4 2 8,31 15,54 9,62
Bond Euro Bonds - Corporate 73.318 FR0013217999 FR0013217999 echiquier altarocca hybrid bonds EUR 5 Open-end mutual funds SDGE2 Environment 5 4 3 8,07 11,46 0,10
Bond International Bonds - Corporate 78.768 FR0013340957 FR0013340957 Echiquier Hybrid Bonds EUR 5 Open-end mutual funds SDGE2 Environment 5 4 4 7,95 11,25 -0,46

The 5 most profitable sustainable ETFs aimed at preserving natural resources :

type_name_en Classification instrument_id isin masterisin Fund Currency ESGAP class_type Theme Cod_impact Area Intensity Performance Risk Performance 6 months Performance 1 year Performance 3 years
Equity International equities 71.646 IE00BJQRDP39 IE00BJQRDP39 invesco quantitative strategies esg global equity multi-factor ucits etf EUR 5 Exchange Traded Fund SDGE2 Environment 5 4 2 27,47 39,31 41,07
Equity International equities 63.097 LU1792117779 LU1792117779 lyxor msci world esg leaders extra (dr) ucits etf USD 4 Exchange Traded Fund SDGE2 Environment 5 4 1 20,23 31,03 44,66
Equity International equities 75.426 LU2109786587 LU2109786587 amundi etf msci world esg universal select ucits etf USD 5 Exchange Traded Fund SDGE2 Environment 5 4 2 18,59 28,85 41,59
Equity US equities 71.734 IE00BKS7L097 IE00BKS7L097 invesco s&p 500 esg ucits etf USD 3 Exchange Traded Fund SDGE2 Environment 5 4 2 18,51 32,59 57,62
Equity International equities 71.868 IE00BJQRDK83 IE00BJQRDK83 invesco msci world esg screened ucits etf USD 4 Exchange Traded Fund SDGE2 Environment 5 4 2 18,46 29,06 40,29
Equity Sector Equities - Climate & Environment 73.853 IE00BMDWYZ92 IE00BMDWYZ92 jpmorgan carbon transition global equity ucits etf USD 5 Exchange Traded Fund SDGE2 Environment 5 4 4 16,10 25,99 39,60
Equity Japan equities 73.051 LU1646360542 LU1646360542 Lyxor MSCI Japan ESG Leaders Extra (DR) UCITS ETF EUR 5 Exchange Traded Fund SDGE2 Environment 5 4 2 10,93 28,47 24,67
Equity US equities 75.423 LU2109786660 LU2109786660 amundi etf msci usa esg universal select ucits etf USD 3 Exchange Traded Fund SDGE2 Environment 5 3 2 20,43 34,10 48,69
Equity US equities 71.596 IE00BJQRDM08 IE00BJQRDM08 invesco msci usa esg screened ucits etf USD 3 Exchange Traded Fund SDGE2 Environment 5 3 2 20,28 34,16 48,01
Equity Euro equities 72.880 LU2109786827 LU2109786827 amundi etf msci emu esg universal select ucits etf EUR 4 Exchange Traded Fund SDGE2 Environment 5 3 2 17,91 19,99 30,84

The 5 most profitable sustainable theme funds aiming to preserve natural resources:

type_name_en Classification Theme instrument_id isin masterisin Fund Currency ESGAP class_type Cod_impact Area Intensity Performance Risk Performance 6 months Performance 1 year Performance 3 years
Equity Sector Equities - Technology Robotics 39.821 LU1279333329 LU1279333329 pictet robotics USD 5 Open-end mutual funds SDGE2 Environment 5 4 1 33,56 43,49 43,10
Equity Sector Equities - Technology Robotics 65.020 LU1502282806 LU1502282806 candriam equities l robotics & innovative technology USD 4 Open-end mutual funds SDGE2 Environment 5 4 1 29,68 36,96 38,72
Equity Sector Equities - Technology Robotics 63.451 LU1598284849 LU1598284849 candriam equities l robotics & innovativetechnology EUR 5 Open-end mutual funds SDGE2 Environment 5 4 2 28,91 37,01 37,96
Equity Sector Equities - Technology Robotics 42.309 BE0176735018 BE0176735018 belfius equities robotics & innovative technology USD 5 Open-end mutual funds SDGE2 Environment 5 4 1 28,70 35,24 34,39
Equity Sector Equities - Technology Disruption 28.221 LU0823422067 LU0823422067 bnp paribas funds disruptive technology EUR 3 Open-end mutual funds SDGE2 Environment 5 4 1 27,68 37,75 55,19
Equity Sector Equities - Technology Robotics 71.101 LU1923622887 LU1923622887 natixis if (lux) i thematics ai and robotics USD 5 Open-end mutual funds SDGE2 Environment 5 4 2 26,60 32,20 45,19
Equity International Equity - Growth Equality and inclusion 50.735 LU0129437173 LU0129437173 jpmorgan global socially responsible USD 4 Open-end mutual funds SDGE2 Environment 5 4 2 23,20 32,20 44,29
Equity International equities Equality and inclusion 70.500 LU1939215312 LU1939215312 nordea 1 global gender diversity EUR 5 Open-end mutual funds SDGE2 Environment 5 4 3 21,84 31,82 49,18
Equity International equities Millennial 70.372 LU1966631266 LU1966631266 carmignac pf grandchildren EUR 5 Open-end mutual funds SDGE2 Environment 5 4 1 21,37 30,17 37,60
Equity Sector Equities - Water Water 33.223 LU1165135952 LU1165135952 bnp paribas funds aqua EUR 5 Open-end mutual funds SDGE2 Environment 5 4 4 18,41 22,15 33,76
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