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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

6th

Resource Scarcity is the 6th most represented megatrend in this portofolio

9 (of 30)

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

6%

Portfolio Megatrend Exposure

0%100%

Data source: Globalance

 
Asset Name
Resource Scarcity Exposure
Global Megatrends Exposure
% of portfolio
BASF SE45%45%5%
Henkel AG & Co. KGaA Pref45%100%1%
Continental AG35%53%1%
E.ON SE21%99%2%
Bayer AG18%75%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.

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