Sustainability is no longer a fad. Rather, it is a powerful trend that stands to revolutionize the way the world does business in the coming years. Like the industrial and IT revolutions before it, sustainability has altered the way companies create and market goods at every point from initial production to final sale. In the coming years, institutions that succeed in incorporating sustainable practices into their business model will thrive, yet those who fall short will surely fall behind.
As corporations worldwide begin to adjust to the sustainability trend, new opportunities for investment are created daily. In the US alone, over 11 percent of all assets under professional management, amounting to over $2.7trn, are invested in the socially responsible investment market. As capital continues to enter the sector it will further the sustainability trend, expanding the market and increasing returns.
Pluris Sustainable Investments focuses on identifying investment opportunities with businesses that have found a way to embrace sustainability as a means of offering superior returns. In a quest for returns that satisfy the “triple bottom line”– people, planet, profit – Pluris Sustainable Investments constantly reaffirms its dedication to ESG considerations through the application of its unique Green Investment Mandate across all investments. The mandate requires that each investment promotes sustainable practices, first, by falling into one of the five sectors of the WCARE investment universe, and second, by qualifying, wherever applicable, for independent, audited third party certifications.
Investing with care
Pluris maintains a diverse portfolio by investing globally in five sustainable sectors: Water Infrastructure/Treatment, Carbon-Emission Reduction, Agricultural Sustainable Growth, Renewable Energy, and Environmentally Sustainable Properties. Collectively, Pluris Sustainable Investments refers to these sectors as the WCARE (or “with care”) investment universe. These five sectors were carefully selected at the asset management company’s inception to generate superior returns within the parameters of certified sustainable investing. All potential investments are originally identified based on their operation within one of the WCARE sectors. Each sector allows for unique opportunities to capitalise on the expansion of sustainable markets and to ensure continued growth of investments in strong, cutting edge, and ever-evolving markets.
Water infrastructure /treatment
Global water infrastructure is seriously lacking, with over one billion of the world’s people still devoid of access to safe drinking water. Most efforts to extend clean water access worldwide are headed by charitable organisations. Pluris Sustainable Investments seeks to encourage the privatisation of these efforts with investments in this sector, maximising economic, environmental and social benefits.
Carbon-emission reduction
As carbon resources continue to disappear at astonishing rates, governments worldwide respond with new mandates and regulations limiting carbon emission. These environmental and legal demands have led to the creation of new and unique investment opportunities in the global race for carbon emissions reduction.
Agricultural sustainable growth
Population growth and harmful farming practices threaten the global agriculture industry more and more with each successive growing season. Pluris Sustainable Investments works to support sustainable farming and environmental protection while increasing crop yield with its investments in this sector. All of Pluris’ agricultural investments derive additional financial benefit from qualification for independent third party certifications, enjoying price premiums and entry into niche markets.
Renewable energy
As energy from fossil fuels loses viability, the renewable energy sector – including hydro, wind, solar, wave energy and biofuels – has enjoyed rapid growth. Investments in renewable energy enjoy worldwide support in the form of tax breaks, cash grants, and feed-in tariffs. When this support is coupled with a strong, innovative business platform and rapid industry growth, investments in the renewable energy sector offer the potential for maximum returns. Pluris Sustainable Investments looks to capitalise on this opportunity as the renewable energy sector grows to replace the rapidly outdated and ecologically unstable fossil fuel market.
Environmentally sustainable properties
Environmentally sustainable properties seek to maximise traditional benefits from property development by applying sustainable practices to reduce costs and energy requirements. Further opportunity for financial returns comes from the unique position sustainable properties hold to meet the demands of the environmentally-minded consumers. Involvement in this sector allows Pluris to encourage the incorporation of sustainability across industries.
Third party sustainable certifications
After identifying investment opportunities in one of the five WCARE sectors, the investment selection process continues with extensive research into both the viability and sustainability of each opportunity. The Green Investment Mandate’s requirement for third party certifications is a vital aid to this research. Pluris Sustainable Investments itself uses third party sustainable and ethics certifications as a means of ensuring that investments meet the highest standards in sustainability and ethical practice. Certifications further serve as a signal to investors that assets management continues to adhere to our Green Investment Mandate. And for investments themselves, third party certifications allow for price premiums and access to specialised markets.
Pluris is focused on investments which qualify or are under review for four of the most universally respected sustainability certifications: Forest Stewardship Council Certification (FSC), Rainforest Alliance Certification (RA), Fair Trade Certification, and Leadership in Energy & Environmental Design (LEED). Pluris Sustainable Investments itself is currently under review by Ethics, a third party certification service monitoring corporate adherence to ethical principles above and beyond the law. Qualification for the Ethics Certification denotes an outside recognition of in-house commitment to responsible, ethical conduct and indicates an incorporation of ESG into not only investments, but also Pluris’ own operations. Though not a certification, Pluris’ asset manager is also a signatory of the United Nations Principle for Responsible Investing, a commitment that further indicates a belief in high economic, social, and governance standards.
Investments must further adhere to Pluris’ own strict risk management execution mandate, which is a key and fundamental element of the group’s investment thesis. Foreign exchange and commodity hedging programs through advance derivate trading have been part of the manager’s added value offering over 40 years of combined experience. Additionally the team benefits from the consulting industry’s gold standard, with senior associates adding both depth and breadth to quantitative and qualitative business analysis.
Incorporating ESG
Pluris’ newest investment opportunity is a prime example of how the Green Investment Mandate works to incorporate ESG considerations into all investment decisions. As a sustainable timer extraction operation, this new investment falls under the Agriculture Sustainable Growth sector of our WCARE universe. All products merchandised by our partner in country are Forest Stewardship Council certified.
Operating in Nicaragua, Pluris’ new investment thesis is based on a timber salvage effort in the RAAN (North Atlantic Autonomous Region). Nicaragua is an environment ripe for the expansion of sustainable forestry practices. The RAAN is not only Central America’s largest lowland tropical forest but also Nicaragua’s richest area in terms of natural resources. However, the average per capita annual income in the area stands at an average of only $28. Within this dichotomous region, our investment partner has already acquired approximately 13,000 hectares of forest damaged by Hurricane Felix in 2007. This natural disaster created an immediate need for the removal of felled timber to prevent the conversion of damaged forest into agricultural areas and to allow for full ecosystem recovery. Pluris’ investment will translate this need into an opportunity by supporting the creation of a sustainable timber extraction operation.
Amongst others, we are joined in our efforts by multi lateral development banks such as the International Finance Corp. of the World Bank who foster private sector investment in developing nations. Financial support from groups such as the IFC shows widespread affirmation of Pluris’ belief that this investment will offer enhanced returns from price premiums and niche market access with FSC Certified products, while also benefitting the local Nicaraguan society and economy through sustainable, ethical business practices. Thus, the investment will allow Pluris Sustainable Investments to invest not only in local economic, enviromental and social change, but to also encourage the expansion of sustainable forestry at large.
From inception, Pluris Sustainable Investments was created to incorporate environmental, social, and governance concerns into investments and operations. Indeed Pluris attracts investors with an ability to maximise returns through environmentally and socially sustainable investment opportunities. The Green Mandate functions as an internal guideline in the investment selection process. It also serves to guide Pluris Sustainable Investments towards the “triple bottom line”. As the Sustainability trend grows, Pluris Sustainable Investments will increasingly rely on the Green Mandate, and particularly third party certifications, to avoid “greenwashed” opportunities in favor of those that truly show dedication to economic, environmental and social sustainability.
For more information tel: +41-21-340-6526; email: info@plurisinvestments.com;
www.plurisinvestments.com
