Younger investors more likely to back impact investment funds, Barclays survey
Millennials are driving the trend in impact investing, research from Barclays reveals. A survey of 2,000 investors found that almost half of young people are backing impact investment funds, up from 30 per cent in 2015. Impact funds find firms actively trying to address challenges such as climate change, ageing populations and chronic diseases through their products and services or business practices. Funds are available that tap into mega-trends such as clean energy, sustainable food and low carbon transport and still deliver competitive returns. The Hermes Impact Opportunities Equity fund, launched in December 2017, has returned 7.7 percent over the last six months. The Barclays survey also indicated that investors under-30 allocate three times as much of their portfolio to impact investments as those aged 60 and over. (Money Observer)
Facebook’s privacy efforts are ‘inadequate’, says ESG head
Social media giant Facebook is not responding adequately to concerns over data privacy and content moderation, according to Liontrust. The active fund management company sold out of the stock earlier this year. Mike Appleby, sustainable investment director at Liontrust, wrote a commentary in the week prior to the recent stock-price drop of 20% citing concerns about the steps being taken to address major data breaches. “Over the course of 2017, we met with experts in data privacy, content moderation and fake news, and how social networks fit in with existing media regulation.” but Appleby said the response is “inadequate in light of the risk to its profitability.” Liontrust has updated how it rates social networks to be more stringent and subsequently downgraded and removed Facebook from portfolios in Q1 2018. Looking at ongoing efforts to combat challenges such as fake news and inappropriate content, Appleby said Facebook and other social networks are looking at a challenge that will probably “stretch to years rather than months.” (Citywire)
Renewables
Wind power drives UK renewables to 30% share of electricity mix
The UK Government’s latest Digest of UK Energy Statistics found that renewables accounted for 29.3% of the UK’s electricity in 2017, up from 24.5% in 2016. Wind power accounted for half of the renewables mix, with 8.6% source from onshore wind and 6.2% from offshore. According to RenewableUK’s executive director Emma Pinchbeck, the latest figures suggest that the UK is building an energy system “fit for the future”, but only if onshore wind policy is reformed. Onshore wind has been locked out of the UK’s Contracts for Difference (CfD) framework since 2015, with the current auction process only open to less established renewable technologies such as offshore wind. However, reports suggest that 1GW of new onshore wind farms would be £30m cheaper a year than offshore wind, and £100m less than new nuclear or biomass plants. Onshore wind accounted for 3.3GW of new additions for the first half of 2018, with Germany, France and Denmark the primary drivers of growth. (Edie)
Innovation
The North Face launches refurbished apparel pilot
VF Corporation brand The North Face launched a pilot program this summer to sell refurbished apparel online, extending product life. Called The North Face Renewed, the collection targets consumers looking for affordable gear who also want to reduce their environmental footprints. The North Face Renewed partners employ cleaning processes that include Tersus Solutions, a water-free and dryer-free cleaning technology that uses liquid carbon dioxide to deliver durable garments. “The process recaptures approximately 98% of the CO2,” according to The North Face. “It eliminates the need for water, thus using fewer natural resources and produces no effluent. Also, as no heat is used, the garments are protected against shrinkage and fiber degradation.” James Rogers, director of sustainability at The North Face said, “As we address the impacts of our products over their entire lifecycle, recommerce is an important next step in opening new markets and minimizing our impact on the planet.” (Environmental Leader)
Sustainable Fashion / Ocean Plastics
Inflatable pool toys draw attention to plastic crisis in Botter’s latest collection
Dutch fashion label Botter‘s Spring Summer 2019 collection explores the impact of ocean pollution on developing countries. Pool inflatables shaped like marine life, fluorescent fishing nets and the logo of a multinational oil company featured in Botter’s SS19 show, named Al Fombra. The design duo behind Botter wanted to create a collection that represents their Caribbean roots while drawing attention to how the region is being damaged by global consumption and oil exploration. Garments were accessorised with colourful plastics, inflatable pool toys and clothes items that resembled an oil slick. The collection combined designs with logo t-shirts for gas and soft drink companies; intended as a critique on hyper-consumerism and the impact of offshore drilling on the world’s oceans. (Dezeen)
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