Biodiversity
The Redwheel Biodiversity Strategy aims to provide long-term capital growth in a portfolio of global companies whose products and services have the potential to mitigate biodiversity loss. The Team believes that the preservation of the planet’s biodiversity is a long-term, structural, growth opportunity supported by regulatory, governmental and consumer pressures.
Why now for Biodiversity
Natural ecosystems are under threat from an array of mostly human-made problems such as pollution and overexploitation of resources, exacerbated by a funding gap. Ecosystem services are worth an estimated $125-$140 trillion per year and only ~$39 billion of finance currently flows to biodiversity. This is an unrecognised investment opportunity that the Redwheel Biodiversity Strategy aims to take advantage of.[1]
Investment approach
The Investment Team selects companies that can progress the preservation of biodiversity through their products and services and that have the potential to succeed profitably over the long term. The team’s unconstrained, active, approach to selecting companies results in a diversified, multi cap portfolio.
There are four themes in which the investment team see the highest potential for investor action, providing breadth and depth of investment opportunities:
Sustainable Materials
Terrestrial Ecosystems
Aquatic Ecosystems
Circularity & Waste Management
In this video, Amanda O’Toole, examines four investment themes as part of the Redwheel Biodiversity Strategy that can potentially reduce the rate of environmental depletion and degradation, and deliver a better future for biodiversity.
The focus for climate change action is almost always on ‘mitigation’ – investing in the technologies and activities that can reduce emissions to reduce the amount of warming that happens. In this Greenwheel research paper, Redwheel focused on another side of the climate change action coin that gets much less attention but is crucial in its own right: adaptation.
Amanda O'Toole, Portfolio Manager of the Redwheel Biodiversity and Clean Economy Strategies, discusses the water pollution crisis and opportunities for businesses and investors.
