Up until about three years ago, all that a successful investor had to do was avoid companies exposed to environmental, social and governance risks. However, in the latest Nordea On You Mind report The New Green, our analysts show that in the past few years it has actually been a much more successful strategy to invest in companies that have a strong sustainability narrative. Companies that help society become more sustainable.
The first wave of these opportunity-driven, rather than risk-mitigating, investments have been steered toward companies with products, services and processes that will help us transform into a low-carbon world. These companies are found in “obvious” sectors, such as renewables, forestry and high-efficiency heating.
Predicting which companies that will be the foci of the second wave is, however, more difficult. Our analysts suggest that the market will start looking for companies in sectors that aren’t as “green” as in the first wave, but that will still be instrumental in driving the transition into a low-carbon economy.
Find out which companies and sectors our analysts think could be the next foci of ESG-opportunities-driven investments, and more, by listening to the latest Nordea On Your Mind podcast The New Green.
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High levels of customer and business activity led to very strong first-quarter results.