Investing in companies that help regenerate ecosystems and create more resilient societies
Why invest in Regeneration?
Biodiversity is in rapid decline, largely caused by over-consumption of the world’s natural resources.
Biodiversity loss threatens global economies and their populations. It also threatens the economy, with more than 50% of global GDP dependent on nature and products and services derived from itWorld Economic Forum (WEF), Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy, 2020.
Source: Living Planet Report 2022, WWF/ZSL.
We believe investors have a role to play in creating the conditions for nature to regenerate itself by moving to a regenerative economy.
What is a regenerative economy?
A regenerative economy entails a healthy environmental and social system.
It has three characteristics:
- It is circular and has a neutral/positive impact on biodiversity.
- It is one where companies consume fewer natural resources (and more sustainably), produce more renewable resources, and repurpose products or extend their useful lives.
- It offers greater social and economic inclusion, helping to create more resilient societies which are better able to address the planetary emergency.
Three reasons why investors should pay attention to this important theme
Biodiversity is a global priority
The creation of the Global Biodiversity Framework (GBF) at COP-15 is creating investment opportunities.
Strategies investing in biodiversity and natural capital aim to help embed more sustainable and regenerative business practices in industries such as agriculture, materials, consumer discretionary and staples, and utilities.
A fast-growing market
Current spending on sustainable supply chains, green financial products, biodiversity offsets, carbon markets and natural climate solutions is around USD143 billionhttps://www.nature.org/en-us/what-we-do/our-insights/perspectives/closing-nature-finance-gap-cbd/ – this falls far short of the estimated USD1 trillion a year needed.
Transforming current food and land use to regenerative and circular practices could create a biodiversity market worth USD 4.5 trillion by 2030Food and Land Use Coalition, September 2019, https://www.foodandlandusecoalition.org/wp-content/uploads/2019/09/FOLU-GrowingBetter-GlobalReport.pdf.
Companies helping to preserve biodiversity are likely to outperform
We believe this will happen over the coming decades due to increased regulation, strong demand from consumers, and rising awareness of the planetary emergency.
What areas does our regeneration strategy invest in?
Source: Pictet Asset Management, 2023
Interested in learning more about ReGeneration ?
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Pictet-ReGeneration Launch Webcast
WatchWatch our latest webinar to hear more about our investment strategy and how we put it into practice through our ReGeneration strategy.
Our commitment to Biodiversity research
We have chosen to build on our 20+ year track record in sustainable investing and experience applying the Planetary Boundaries framework by deepening our relationship with the Stockholm Resilience Centre (SRC), through our participation in the SRC’s ground breaking biodiversity research programme (FinBio).
Pictet AM - Pioneers of environmental thematic investing
- We are the pioneers of thematic environmental investing with a 20+ year track record – dating back to the launch of Pictet Water in 2000.
- Our range of environmental investment strategies now covers the China Environmental Opportunities, Clean Energy Transition, Global Environmental Opportunities, ReGeneration, Timber and Water themes.
- Our range of thematic strategies encompasses 60+ investment professionals, managing around USD 65 Bn in AUM