Sustainability factors are increasingly being included in investment decisions and more investors are looking for ESG (environment, social and governance) cases for their portfolios. ABG Sundal Collier (ABGSC) is hosting a Clean Air & Water seminar on 12 November 2021. Companies presenting at the seminar are: Absolent Group, Beijer Ref, Instalco, Lindab, Nederman Group and Systemair. The seminar will be open for ABGSC clients only.
Why is ABGSC arranging a Clean Air and Water seminar?
“Companies that offer solutions related to improved air and water applications address several important aspects of the UN’s sustainable development goals, and we believe there are multiple drivers behind why such companies could see improved tangible demand for several years to come”, says ABGSC’s equity analyst Karl Bokvist.
What are the key factors driving the sector?
“Existing HVAC* applications often account for a significant portion of total energy consumption in buildings (nearly 20% of total electricity, according to the IEA), and the launch of the EU’s renovation wave, the proposed infrastructure plan in the US and companies committing to the Science Based Targets Initiative (SBTi) are all regulatory drivers that we expect will drive increasing investments into these areas. In addition, water shortages and a lack of access to clean air and water have been highlighted as key topics for the future, according to the UN”.
How do companies within the “Clean Air and Water” segment stand out from other ESG cases?
“Many products and solutions offered by these companies are commercially proven and already offer tangible benefits for their customers. Thus, we believe investors looking for companies with established revenue models could find these companies attractive”.
The appetite for ESG cases has been strong among investors for some time. Do you see any risk of a “green bubble”?
“There are many highly interesting areas within the ESG space that could offer substantial benefits to the world over a long period of time. However, some ESG cases tend to be based on revenues far out in time, thus increasing their sensitivity to investors’ return requirements and risk-aversion. On the other hand, there could also be a risk of extrapolating growth trends in companies that generate revenues today. As with all investments, there will be good and bad ESG cases. Therefore, I believe it is very important to be selective and always do your homework and make decisions based on in-depth knowledge, as well as your investment horizon and risk-aversion”.
Anything in particular that you are looking forward to hearing from the presenters?
“Applications related to energy efficiency and clean air and water can take many forms. We therefore want to hear how each company aims to provide market leading solutions in their respective niches, and how these niche areas together support the overarching ambition of improving the world’s access to sustainable air and water”.
* Heating, ventilation, and air conditioning
To find out more about ABGSC’s Clean Air & Water seminar as well as other events and research, go to http://researchweb.abgsec.net/ (Available for ABGSC clients only)

Published: 29 Oct, 2021