Traditional, bottom up research paired with a compelling, macro-economic growth thesis based on scientific, demographic and climate trends.
Green Alpha begins the investment process by asking, “Does a company, in aggregate, contribute to or mitigate the systemic risks of resource scarcity, climate change or population growth?” The resulting list of Next Economy candidates are then vetted using time-tested growth and valuation methodologies.
Key solutions to warming, resource scarcity, extreme weather, rising sea levels and increasing population.
- Inexpensive, indefinitely renewed energy
- Waste-to-value economics (near perfect recycling)
- Careful management of scarce resources, like water and farmland
Companies that deliver solutions most efficiently and profitably.
- Observable high EPS growth
- Proven management skill and execution
- Areas of current or expected high demand
The most feasible, promising, fastest growing sectors.
- Solar: cheap and efficient; fastest growing energy type in the world
- Water management, treatment and creation
- Advanced materials
- Production and information efficiency gains