The EQ Positive Impact portfolios invest in companies that are making a positive impact on society and the environment by providing solutions to real world problems. We use the United Nations Sustainable Development Goals as a way to map the impact of their products and services.
Case study 1: Renewable energy – powering a safer future
Although electricity access has continued to improve globally over the last decade, the UN projects that, by 2030, there will still be roughly 670 million people unable to access electricity. The share of renewables in global energy consumption is continuing to rise, yet it still only represented 17% of the global energy mix in 2021 and will need to increase significantly to reach UN SDG 7 targets.
Even within renewable energy, challenges persist in terms of efficiency, cost, and environmental impact of the technologies. Continued investment into clean energy solutions is important to drive the necessary innovation and cost efficiencies, so that clean energy becomes the largest portion of our global energy mix.
Company spotlight: Vestas Wind
Vestas Wind Systems, a Denmark-based leader in the renewable energy sector, specialises in designing, manufacturing, and servicing wind turbines. Vestas produces efficient wind turbines that facilitate the large-scale generation of affordable, sustainable energy. By harnessing wind power, Vestas’ technologies help reduce our current electricity grid’s dependence on fossil fuels and prevent the associated greenhouse gas emissions once installed.
As of 2022, Vestas has avoided 1.9 billion tonnes of CO2 over the last four decades, equivalent to the yearly carbon emissions from roughly 2.5 times the UK population. Vestas continues to innovate its products to enable wind turbine installations in previously unsuitable locations. This includes designing turbines for high-wind and ultra-low-wind environments. Addressing the issues that can arise at the end of the product life cycle, Vestas’ new ground-breaking blade circularity solution achieves 100% recycling, eliminating landfill waste.
Fund in focus: Guinness Sustainable Energy Fund
Vestas Wind Systems A/S receives investments through the Guinness Sustainable Energy Fund, which invests in companies worldwide that are actively involved in the production of energy from renewable sources and those that provide technologies across the renewable value chain. Other prominent companies in the fund include Hubbell Inc and Schneider Electric.
Case study 2: Improving air quality
Air pollution is a severe global problem. According to the World Health Organisation, 99% of the global population live in areas with unacceptable air pollution levels, contributing to seven million premature deaths annually.
The transport sector, with its reliance on fossil fuels, is a significant contributor to this problem, releasing pollutants such as nitrogen oxides and carbon dioxides, with the sector accounting for 20% of global CO2 emissions. Additionally, industrial processes such as power generation and back-up generators for data centres contribute to a high portion of global emissions of harmful gases and particulate matter. To help reduce these emissions, we must improve the effectiveness of emission control technologies.
Company spotlight: Johnson Matthey
Johnson Matthey operates across several sectors, including automotive, chemicals, pharmaceuticals, and energy. Their products are diverse, from automotive catalysts reducing vehicle emissions to sustainable battery materials for electric vehicles and clean air solutions. Johnson Matthey’s emission control technologies are vital in addressing the severe global air pollution problem.
In the automotive sector, their catalysts enable chemical reactions at the tail-pipe, which reduce harmful emissions such as carbon monoxide and nitrogen oxide from vehicles’ exhausts, turning them into less harmful emissions such as nitrogen and water vapour. One in every three vehicles globally contains a Johnson Matthey catalyst, preventing 40 tonnes of pollutants from entering the atmosphere every minute. In the industrial sector, Johnson Matthey’s technology reduces emissions from large point sources such as backup generators for data centres, power generation, shipping, mining, and various industrial processes.
Beyond catalysts, and to reflect that we are moving towards an electrified transport sector, Johnson Matthey is widening its solutions to develop fuel-cell technologies, electric-vehicle battery materials and hydrogen electrolysis.
Fund in focus: Ninety One UK Sustainable Equity Fund
Johnson Matthey receives investment from the Ninety One UK Sustainable Equity Fund, which invests in UK companies that display leading internal and external sustainability.
Another company in the fund that works on preventing air pollution is Oxford Instruments, producing emission control and fluid dynamics measurement techniques.
Case study 3: Fighting back against antimicrobial resistance
Healthcare-Associated Infections (HCAIs) are a growing and substantial global challenge. HCAIs are a type of infection that can develop either because of healthcare interventions such as medical or surgical treatment, or from being in contact with a healthcare setting. HCAIs affect around 11 in every 100 patients and significantly increase morbidity, mortality, and healthcare costs; around 1 in 10 patients will die from their HCAI.
A leading cause of this issue is Antimicrobial resistance (AMR), which occurs when bacteria, fungi and parasites change over time and no longer respond to antibiotics. This makes infections harder to treat. Deemed a ‘global health emergency’, AMR threatens to undermine decades of progress in treating infectious diseases. Addressing this challenge requires technological innovations, improved healthcare infrastructure, and greater accessibility to quality healthcare services.
Company spotlight: Becton, Dickinson, and Co.
Becton, Dickinson, and Co. (BD) is a medical technology company with expertise in developing and manufacturing a diverse array of healthcare products, devices, and diagnostics crucial to advancing medical practices and patient care.
A significant area of BD’s focus is infection prevention and control. It provides a suite of products and technologies to reduce healthcare associated infections (HAIs), including specialised needles, catheters, and other medical devices that minimise infection risk.
BD has been a major player in the fight against AMR. The company’s approach involves the development of precise diagnostic technologies to identify infections and inform suitable treatment. Additionally, BD champions antimicrobial stewardship programs, promoting responsible use of antibiotics, thereby contributing to the long-term effectiveness of these vital drugs.
At the heart of BD’s mission is accessibility and affordability. The company strives to make its medical technologies available to all healthcare systems, even in resource-limited environments and geographies.
Fund in focus: Wellington Impact Bond Fund
Becton Dickinson Co. received investment through the Wellington Impact Bond Fund, a fund committed to generating social impact alongside a financial return. Some healthcare bonds that Wellington Impact Bond invests in include the Mount Sinai Hospital and the
Beth Israel Deaconess Medical Centre bonds, which use proceeds for healthcare-related projects.
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