"Protecting the climate and earning profits simultaneously"
The world is witnessing significant changes in the Arctic, with sea levels rising, oceans warming, and glaciers disappearing. These shifts have far-reaching implications for the global climate, and two investment funds, Ökoworld Klima C and LBBW Global Warming R, are taking different approaches to address these challenges.
Ökoworld Klima C, a fund primarily invested in companies making a tangible contribution to the climate turnaround, maintains a complete taboo on controversial industries such as coal, oil, nuclear energy, and armaments. The fund's focus areas include energy efficiency, sustainable agriculture and forestry, climate-friendly transport routes, environmentally friendly recycling, and the reduction of pollutants in air, soil, and water. The portfolio is dominated by medium-sized and smaller values, with the American auto parts retailer LKQ holding the largest position.
On the other hand, LBBW Global Warming R, managed by Christian Keidel, invests predominantly in companies whose business success is linked to combating global warming. Unlike Ökoworld Klima C, LBBW Global Warming R does not shy away from investing in sectors like technology, chemistry, health, financial services, and renewable energy, even though it includes companies from controversial industries. The fund's portfolio is diversified across various sectors, with large players such as US conglomerate Danaher, Microsoft, ASML from the Netherlands, Nvidia, and US technology company Thermo Fisher Scientific making up significant portions.
The LBBW Global Warming R fund, launched in 2007, has shown impressive returns over the years. Over ten years, it achieved a return of 22 percent this year, while the fund launched in 2007 achieved a return of 346 percent. In 2019, the fund volume was 130 million euros, but now, under Keidel's management, it manages over one billion euros.
The focus on sustainable development goals aimed at climate protection and sustainable cities is evident in LBBW Global Warming R's portfolio. The fund invests in technology and chemical companies contributing to CO2 reduction and renewable energies. Exclusion criteria such as child labor and violations of human and labor rights are mandatory for the fund.
Meanwhile, researchers predict further temperature increases, more drought, natural disasters, and an overall increasing unpredictability of the climate due to the greenhouse effect. The consequences of these changes can be seen not only in the Arctic but also in the decreasing global population of freshwater animals, which has decreased by almost 90 percent since 1970. The number of flying insects in Germany has halved in the past 30 years, a stark reminder of the impact of climate change.
Investing in funds like Ökoworld Klima C and LBBW Global Warming R could be a step towards mitigating these effects and supporting companies that are working towards a more sustainable future. However, as with any investment, it's crucial to conduct thorough research and understand the risks involved.
