Language
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US & Canada
30%
Latin America & Carribbean
3%
Africa
& Middle East
4%
Europe
35%
Asia & Pacific
28%
16%
12%
12%
12%
10%
10%
9%
7%
6%
Industrials
Consumer staples
Materials
Financials
Consumer discretionary
Healthcare
Utilities
Information technology
Communication services
Energy
Real estate
5%
1%
Click the interactive cityscape to find out how the companies we invest in are driving Positive Change
Breakdown by geography
Breakdown by sector
Accelerating the transition to
Positive Change
Sustainability journey from opportunities to improvers to leaders
Energy provider
The company is a leader in the generation of wind energy in China.
Investment thesis
The energy transition presents a huge growth opportunity for this market leader. They are seeking to develop new renewable energy projects which will help reduce China’s dependency on coal for power generation.
Increasing alignment with:
UN SDG 7 - Clean & Affordable Energy
UN SDG 13 - Climate action
Companies that may have lower alignment to the SDGs but where we have identified the potential, ability and willingness to improve alignment.
Opportunities
Improvers
Companies that may have lower alignment to the SDGs in their sector but are already showing signs of improvement.
Leaders
Companies that are the best performers in their sector in terms of alignment of their products and services to the SDGs.
We aim to work in partnership with the companies we invest in, driving positive change through collaboration.
“
”
Yuko Takano
Co-Lead Investment Manager, Pictet- Positive Change
Positive Change is a global, diversified, unconstrained equity strategy. It invests not only in those companies that are already leaders in sustainability but also in those that have the potential and willingness to improve.
We engage directly with selected companies in order to improve their alignment to the UN Sustainable Development Goals (SDGs) and reduce their exposure to non-financial risks because we believe this will lead to improving returns and the potential for a re-rating, creating value for our clients.
We classify companies in three ways:
What indicators are we looking at to measure improving alignment?
- Reduction in power generation from coal
- Increase in capacity for clean energy generation,
- Development pipeline for new projects
Engagement
We started engaging with the company in 2021, with an objective focused on helping to accelerate the transition from legacy coal assets towards renewables.
Time horizon: end 2024
Leader
Encourage and accelerate improving alignment to the
United Nations Sustainable Development goals (UN SDGs)
1
Mitigate non-financial risks
2
Create value for our clients
3
Investing only in companies that are already aligned with the UN SDGs is a limited approach. We want to engage with companies that need and want to change – rather than simply excluding them from our portfolio. That’s how we think we can drive real Positive Change.
“
”
Evgenia Molotova
Co-Lead Investment Manager
Interested in learning more about Positive Change?
Visit our dedicated microsite
Marketing material for professional investors only
Provider of recycling services and natural ingredients
Leader
This US company collects and recycles the by-products of animal processing and used cooking oil. It processes these waste materials into natural, sustainable and high-energy ingredients as well as renewable fuels.
Investment thesis
We believe the company’s refining capabilities make it well positioned to capture the growth in demand for renewable ingredients and innovative bio-fuels.
Increasing alignment with:
UN SDG 7 - Clean and affordable energy
UN SDG 12 - Responsible Consumption & Production
UN SDG 13 - Climate Action
What indicators are we looking at to measure improving alignment?
- Reduced water use
- Increased production of renewable/bio-diesel
- Emissions avoided
Engagement
In partnership with a third-party, we started engaging with the company in 2022 in order to reduce their water pollution.
Time horizon: end 2024
Pharmaceuticals provider
Improver
This US company develops medicines for the treatment of disease in humans.
Investment thesis
The company is involved in developing RNA interference (RNAi) technology. This has the potential to revolutionise the treatment and prevention of genetic disorders.
Increasing alignment with:
UN SDG 1- No Poverty
UN SDG 3- Good Health & Wellbeing
What indicators are we looking at to measure improving alignment?
- Drug development pipeline and product launches
- Reach of products and eligibility for Co-pay in the US
Engagement
We initiated a collaborative engagement in 2022 with an external 3rd party with objectives focused on water pollution mitigation and circularity.
Time horizon: end 2024
Oil services provider
Opportunity
Alongside legacy oil and gas services, the company is a leader in the compression technology currently required for natural gas production and transportation. This technology is likely to be crucial to the future development of hydrogen and carbon capture markets. Therefore, as the business transitions, we believe it could be an enabler of the decarbonisation of the energy industry.
Investment thesis
We believe further investment in the company’s climate technology solutions will improve their SDG alignment and increase commercial opportunities.
Increasing alignment with:
UN SDG 6 - Clean Water & Sanitation
UN SDG 7 - Clean and Affordable energy
What indicators are we looking at to measure improving alignment?
- Scope 3 emissions
- Containment of level 2 spills violations
- Investment in CTS (climate technology solutions)
Engagement
We started engaging with the company in 2022. Our short-term objectives focus on reducing their scope 3 emissions and spills, whilst longer-term we want to see increased investment in climate technology solutions (CTS).
Time horizon: end 2025
Auto manufacturer
Opportunity
The company was a pioneer of hybrid technology but has fallen behind current industry leaders in electric and zero emissions vehicles.
Investment thesis
We believe the company’s end-of-life recycling program has the potential to be market leading and their technology and investments could help the company to re-establish its leadership in clean transport.
Increasing alignment with:
UN SDG 11 - Sustainable Cities & Communities
UN SDG 12 - Responsible Consumption & Production
UN SDG 13 - Climate Action
What indicators are we looking at to measure improving alignment?
- Electric vehicle (EV) sales
- Investment in R&D on electrification &
- alternative power sources
- Increase in end of life recycle stations
Engagement
We started engaging with the company in 2022 across a broad range of objectives including: EV production targets, R&D investment in alternative power sources and the alignment of executive compensation with EV production.
Time horizon: end 2025
Disclaimer
This material is for distribution to professional investors only. However it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation.
The information and data presented in this document are not to be considered as an offer or sollicitation to buy, sell or subscribe to any securities or financial instruments or services.
Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
This document has been issued in Switzerland by Pictet Asset Management SA and in the rest of the world by Pictet Asset Management (Europe) SA, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.
For UK investors, the Pictet and Pictet Total Return umbrellas are domiciled in Luxembourg and are recognised collective investment schemes under section 264 of the Financial Services and Markets Act 2000. Swiss Pictet funds are only registered for distribution in Switzerland under the Swiss Fund Act, they are categorised in the United Kingdom as unregulated collective investment schemes. The Pictet group manages hedge funds, funds of hedge funds and funds of private equity funds which are not registered for public distribution within the European Union and are categorised in the United Kingdom as unregulated collective investment schemes.
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Pictet Asset Management (USA) Corp ("Pictet AM USA Corp") is responsible for effecting solicitation in the United States to promote the portfolio management services of Pictet Asset Management Limited ("Pictet AM Ltd"), Pictet Asset Management (Singapore) Pte Ltd ("PAM S") and Pictet Asset Management SA ("Pictet AM SA"). Pictet AM (USA) Corp is registered as an SEC Investment Adviser and its activities are conducted in full compliance with SEC rules applicable to the marketing of affiliate entities as prescribed in the Adviser Act of 1940 ref.17CFR275.206(4)-3.
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Issued in July 2023
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Across all three we selectively engage where we feel we can encourage or accelerate the transition.
