Investments to fight against global warming

How can savers use their money to help the energy transition? Morningstar's investment information provider lists 33 environmental specialty funds marketed in France. The category loses an average of 5.86% over one year but shows an annual gain of 5.47% over five years.
While they have not escaped the ebb of global stock markets in 2018, companies in the sector benefit from a favorable wind: the markets related to the preservation of the environment progress from 6% to 8% per year. "It has become a buoyant business. We can now invest in this sector without taking too many risks, "says Hervé Thiard, head of Pictet AM in France.
Article reserved for our subscribers Read also How to invest in luxury
Most managers have a fairly broad approach to the subject: their strategies encompass all environmental issues, very few precisely target that of the fight against global warming. Many invest in the water sector through utility providers, while their business does not have a direct influence on C02 emissions. Some even buy Toyota or Renault shares, which make cars "cleaner" than their competitors.

The titles most frequently cited by the managers are Queenspan (insulation), Vestas and Siemens (wind turbines), Schneider Electric (energy efficiency), Suez (utilities), Dassault Systèmes (3D modeling), Smurfit Kappa (paper recycling) ...
More diversified and less risky
Funds appear today much more diversified and much less risky than ten years ago. It is true that the sector was shaken by a deep crisis between 2008 and 2012, when European and American solar panel manufacturers were rolled by the Chinese competition. "A time leaders worldwide, the German companies Q-Cells and Solarworld were overwhelmed by the wave coming from Asia. But Asian competition has also helped to democratize this market. A kilo of polysilicon, the raw material of photovoltaic cells, is worth only 9 dollars, against 200 at the time, "says Olivier Ken, environmental performance manager at Ecofi.

Article reserved for our subscribers Read also Should we take advantage of the decline to invest in Chinese funds?
After this painful episode, green funds have broadened their investment horizon. "It's a lot easier today because in twenty years the number of companies dealing with environmental issues has increased from 250 to more than 1,600 worldwide," says Alexandre Jeanblanc, Environmental Product Specialist. at BNP Paribas Asset Management. The bank offers two funds: Parvest Global Environment, which deals with pollution issues in the broad sense, and Parvest Climate Impact, which targets the fight against global warming. The latter's portfolio reflects the dominant position of US companies in environmental markets: they represent more than 40% of its assets, compared to 30% for European companies. https://www.kopos.fr/2018/12/15/des-placements-pour-lutter-contre-le-rechauffement-climatique/