- Switzerland
- July 22, 2022
War and crisis also set the world back in terms of UNO Sustainable Development Goals - But there are rays of hope
Barely seven years remain to achieve the United Nations Sustainable Development Goals (SDG…
Megatrend Exposure
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The Resource Scarcity score of this Portfolio is 6%
Resource Scarcity
The Globalance Megatrend-Share shows you the average share of revenues of the portfolio that is achieved in one or more megatrends. For the calculation, the Megatrend-Shares of the individual investments are capital-weighted and added up.
6%
Resource Scarcity Exposure
7th
Resource Scarcity is the 7th most represented megatrend in this portofolio
10 (of 39)
of the holdings are invested in this megatrend
What's at stake
We consume more natural resources than are available to us. At the same time, we reduce the quality of all our natural resources. Natural resources include finite materials (e.g. minerals, ores for industrial metals, phosphorus, sand, fossil groundwater, etc.), renewable resources (e.g. food raw materials, fish stocks), as well as the quality of the soil, the health of the plant and animal world and biodiversity. One sub-category concerns (scarce) energy resources. These are treated separately under the megatrend "Climate and Energy".
Resource Scarcity Exposure of your Assets
Portfolio Megatrend Exposure
Data source: Globalance
What am I looking at?
The graph shows you the score for each asset. The shape of each asset is its stylized Footprint-Profile.
Asset Name | Resource Scarcity Exposure | Global Megatrends Exposure | % of portfolio | |
|---|---|---|---|---|
| Henkel AG & Co. KGaA Pref | 50% | 100% | 1% | |
| BASF SE | 38% | 38% | 4% | |
| Siemens Energy AG | 26% | 48% | 1% | |
| Beiersdorf AG | 19% | 100% | 1% | |
| Bayer Aktiengesellschaft | 18% | 66% | 4% |
Why does it matter
Opportunities
Basically, it is about nothing less than decoupling economic growth from resource consumption. The vision of a complete recycling economy serves as a long-term guideline.
Reduction of resource consumption (absolute).
Increasing resource efficiency (relatively) by recycling valuable raw materials from waste.
Reduction of the ecological Footprint or increase of biocapacity (according to Global Footprint).
More innovations in the field of Clean-Tech.
Risks
An expression of scarcity are calculations of the global Ecological Footprint as well as the phenomenon of the Anthropocene, i.e. the term for the age in which humans have become one of the most important factors influencing biological, geological and atmospheric processes on Earth.
The material cycle of our consumption (production, consumption, recycling, disposal) is not yet closed.
The laws of nature cannot be overridden. It is a question of survival for mankind to overcome the scarcity of resources. The exponential growth in resource consumption is already leading to critical effects on human health and survival in many regions. Global economic development and population growth will further intensify the challenges of resource scarcity.
Relevance for Investors
Since the 1990s, eco-efficiency thinking has contributed most to the acceptance and business case for sustainability in companies. Produce more from less. Win-win, as costs and resources are saved. But it has been clear for almost as long that eco-efficiency is not enough. Relative improvements are not enough if our natural resources are absolutely finite. Appearance Circular Economy: What we really need is to close the material cycles.
Latest Insights
Globalance assesses and comments: With our Insights, we show you what the developments in the world mean for your assets. The focus is on future-oriented answers to major challenges.