Climate Change Podcasts

In this second episode of the new Climate Change podcast series, Mark Curtin, CEO at the Felix Project speaks with John Teahan, Value Investments Portfolio Manager at RWC Partners about reducing food waste through the distribution of surplus food and how the investment industry can support this work and improve the current landscape.

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Right now, millions of people in the UK regularly experience hunger. Yet tonnes of surplus fresh food is thrown away every day. Mark Curtin and his team at the Felix Project have set out to change this. 

The UN Sustainability Development Goals (SDGs) are looking to halve food waste by 2030, with the UK making significant progress. There is a growing awareness, from all types of investors, about the issue of food waste and the business benefits that can be realised when providing solutions to tackle it. 

Targeting investments in sustainable food companies and in businesses that can demonstrate innovation in resource efficiency and nutrition. Especially those who invest in technology that assist in reducing waste in their production, monitoring, packaging, storage, harvesting and distribution channels.

In simple terms, waste negatively impacts margins in any business, and reducing this waste will improve profitability and investor returns. What can those working in investment do to support this?

1. Inform your clients about the benefits of reducing food waste within their business (increased profits margins/improved brand image/reduced carbon footprint)
2. Align with your stakeholders who already want to tackle food waste, hunger and poverty
3. Research existing investment products that target food waste and other sustainability issues, for instance the World Bank’s Sustainable Development Bonds
4. Create new investment opportunities and innovative solutions to meet the demand
5. Promote the work of food waste charities similar to the Felix Project
6. Make a personal change within your business and take a moral stance

In this first episode of the new Climate Change podcast series, Thomas Streater, CFA from the CFA UK Climate Change Content Working Group, speaks with John Teahan, Value Investments Portfolio Manager at RWC Partners about climate change and value investing.

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A recent Professional Investor article, Asset managers still slow on climate change, revealed that a substantial number of asset managers are still struggling to engage with climate change challenges and research conducted by the CFA Institute shows that, of 305 respondents from across the investment industry, only 40% are currently incorporating climate change into the investment process, even though three-quarters of respondents feel that climate change is an important issue for investment management.

2020 - the boom year for ESG

This last year has seen phenomenal growth with ESG investing and there has been a renewed focus on these high-performing strategies. Bernstein estimates that £200bn flowed into ESG strategies in 2020, compared to £100bn being pulled from all active funds. Why was 2020 such a pivotal year for ESG investing?

A combination of factors has contributed to these successes, from the doubling of companies declaring net zero targets, increased regulation (EU Taxonomy, SFDR) and a societal recognition and shift towards environmental issues.  On top of this COVID-19 gave ESG an unexpected boost with the UK governments mantra of ‘Building Back Better’ cutting through with the general public and investors alike.

There has been a real wake up call for value investors to engage with ESG issues, to attract and win capital for their businesses and the companies they invest in. For Teahan and his organisation RWC Partners, it is not only about integrating ESG strategies into their portfolios, but it’s about going even further and becoming impact investors.