Sustainable Insight Capital Management Reveals its Predictions for the Year
NEW YORK – February 4, 2014 – Sustainable Insight Capital Management (SICM), an investment management firm focused on companies with superior environmental, social, and governance practices, expects China will set the pace on global environmental policy this year. The company’s newly released “Sustainable Insights: 2014” report predicts trends in sustainability.
“Companies across all industries and governments throughout the world must realize the need to incorporate sustainable practices throughout their entire organization, in order to invest not only in their future but the future of the planet,” said Kevin Parker, Chief Executive Officer of SICM. “Our report reveals that in the year ahead certain industries will be making progress, but there still remains much work to be done.”
The persistent smog in many Chinese cities cannot be disguised and rising concerns over the long-term impacts will continue to worry many urbanites, according to the report. The firm predicts that there will more restrictions on vehicle registrations, financial penalties on the worst industrial emitters and development of new carbon trading schemes in the region.
In its report, SICM also predicts that:
- Financial markets will become increasingly nervous about the issue of standard carbon assets
- The Sustainable Accounting Standards Board will develop sustainable accounting standards for 10 sectors and over 80 industries
- The conditions of the Earth’s oceans will receive significantly more publicity this year
- The debate over genetically modified organisms will continue
- Little progress will be made by politicians – both nationally and abroad – on climate change policy
- The Intergovernmental Panel on Climate Change will garner more media attention, with important papers planned for release
- Oil majors might open up the renewables investment tap, most likely in biofuels
- Oil majors will also drop their objections to a carbon tax
- The long-short hedge fund strategies will see the emergence of the first sustainable funds
“Carbon dioxide is increasing in the Earth’s atmosphere at an alarming rate,” Parker noted. “It is the responsibility of the greatest contributors to the problem to act swiftly, and while there are gaps that still need to be filled, we are generally pleased that our predictions indicate corporations and governments are taking this obligation seriously.”
To download the full report, please visit: http://www.sicm.com/docs/SICM%20Predictions-2014.pdf.
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About Sustainable Insight Capital Management: Sustainable Insight Capital Management (SICM), a leading investment management firm, was founded to enable investors to benefit from the transition to a resource-constrained economy. The firm believes today’s most forward-thinking companies are responding to challenges and opportunities created by population growth, natural resource scarcity, climate change, urbanization and globalization. SICM’s research suggests that markets are inefficient and not accurately pricing securities to reflect these macro trends. Leaders who manage these sustainability risks have historically demonstrated superior performance, more stable cash flows, and higher dividend growth over time.
The above research materials are for informational purposes only. They are not an offer or solicitation for any security or investment product managed by SICM and should not be construed as investment advice. Investment strategies implemented by SICM on behalf of its clients may or may not trade or hold positions in the securities referred to above. Further, investment accounts managed by SICM may or may not employ strategies based on or related to the above research.
