As climate and environmental issues gain momentum on the global agenda, the pressure increases on companies to become more sustainable and reduce their greenhouse gas emissions. The EU has set ambitious climate targets that require both consumption and production to become carbon neutral in 2050 or earlier. In addition, there is an increased environmental awareness among consumers globally, which creates new trends and patterns of consumption.
For businesses, this can be a risk while also creating new opportunities. Regardless of industry, companies will need to raise issues of environment, social responsibility and corporate governance, so-called ESG factors, on to their own agendas in order to be able to compete and be profitable in the long-run. As an investor, following these trends and integrating sustainability into the portfolio have shown a positive or neutral impact on financial returns.