White Stag Investing researches investments within key topics in sustainable finance that can be a source of stability, impact, and performance for investors in the long-term. From a bottom-up perspective, proper resources and pollution management are good measures of business diligence. By endorsing responsibility for their supply chain and externalities with circular and stakeholder approaches, companies become aware of potential pitfalls in their production and become more adaptive to sustain challenging environments. Moreover, such responsibility makes them also more acute to changes in social and regulatory environments and helps them keep their reputational capital and social license to operate intact, if not to capitalize on goodwill opportunities leading to higher sales.
From a top-down perspective, they are development thematics that are key challenges for our societies and economies in the 21st century and that can become investment themes for investors. I believe those themes to be the Circular Economy, Water, Oceans, and Agriculture. These themes are more accessible to private capital with existing products and markets. They preserve the ecological services of nature and foster sustainable use of resources. They further lay down at the very foundation of the challenges we face and their resolutions can generate greater impact down the line in many other areas like health, food, and energy. They drive on large economical drivers of climate change and planetary boundaries and are the areas of our world that need investment regardless of any economic situation. They represent therefore ideal long-term investment themes for investors with an embedded source of protection and upside potential. They can further be integrated as asset classes in their own rights in investors' portfolios and bring novel sources of performance and diversification.