Trends with Benefits
Trends with Benefits #59: What is Sustainable InvestingEd Lopez, Head of ETF ProductJuly 15, 2021
What is sustainable investing and is it different than ESG? This was the main question I wanted to ask Veronica Zhang, Analyst and Deputy Portfolio Manager at VanEck. There are many terms and themes related to what we know today as ESG investing that have actually evolved over decades. What has been clear in recent years is that there is a greater awareness of the need for a better, more sustainable approach, to living, to business and to investing. Is this new level of awareness being driven by demographics or necessity?
A World in Transition
In speaking with Veronica, one thing that stood out to me is that our world is in transition. How we source power or even feed ourselves is being transformed. Some transitions are being forced by consumers/shareholders. Engine No. 1's success in winning Exxon board seats is one example that comes to mind. In some cases transitions may be borne out of necessity, like having to deal with rolling power blackouts in California, and now Texas, that may spur demand for battery storage solutions.
Similarly, in agriculture, products produced by the likes of Beyond Meat, may not just be fads of the health conscious. There's a ton of activity in developing alternative proteins that are less intensive to produce and less damaging to land and water resources. The usable resources of which are in decline, while the global population rises.
Veronica speaks to all of this and provides her thoughts about the most compelling sustainable investing trends she sees for investors today.
Trend or Fad
Listen for Veronica’s take on zero-proof spirits, single-use plastics purge, clogs, tiny homes and adjustable desks.
Follow Ed Lopez @ThatEdLopez on Twitter.
Please note that Van Eck Securities Corporation (an affiliated broker-dealer of Van Eck Associates Corporation) may offer investments products that invest in the asset class(es) discussed in this podcast.
The views and opinions expressed are those of the speaker(s) but not necessarily those of VanEck. Commentaries are general in nature and should not be construed as investment advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Any discussion of specific securities/financial instruments mentioned in the commentary is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary. All indices mentioned are measures of common market sectors and performance. It is not possible to invest directly in an index. Information on holdings, performance and indices can be found at vaneck.com.
ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by VanEck or any judgment exercised by VanEck will reflect the opinions of any particular investor. Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and VanEck is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful.
ESG integration is the practice of incorporating material environmental, social and governance (ESG) information or insights alongside traditional measures into the investment decision process to improve long term financial outcomes of portfolios. Unless otherwise stated within the Fund’s investment objective, inclusion of this statement does not imply that the Fund has an ESG-aligned investment objective, but rather describes how ESG information is integrated into the overall investment process.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.
Van Eck Associates Corporation
Explore Related Blogs
Trends with Benefits #64: Institutions Embrace Crypto with Lauren Abendschein
Trends with Benefits #63: Closing America’s Wealth Gap with Calvin Williams Jr.
Trends with Benefits #62: LIVE- All Things Crypto with Jan van Eck
Trends with Benefits #61: A Long Term Approach to Investing with Joe Terranova
Trends with Benefits #60: Green Bonds with Sean Kidney