One of the top global trends is increasing demand for environmental management services and the need for sustainability. These trends are being propelled by rapid population growth in developing and frontier markets, higher standards of living demanded by emerging markets, and the sheer volume of resources consumed in the developed nations.
Environmental Sustainability Definition
Sustainability is the concept of managing resources in a responsible manner to meet the needs of the present and the future. It is no secret that environmental sustainability and the long term health and standard of living of populations go hand in hand. The concept of sustainability has the attention of both governments and corporations because we live in a world with finite resources. How we manage the water, materials, and resources needed to build vibrant economies will determine whether we are able to meet the growing needs of the world.
Trends in Global Environmental Management Services
Many of the healthcare problems in the frontier and emerging markets could be solved by providing clean water, proper sanitation, and healthy food to the populations.
Water will play a key role in how and where economic development takes place. Large amounts of water are required for health and sanitation, agriculture, and the production of energy; all important ingredients for economic growth. In the last decade many large and small corporations have made major investments in water related products and services. There are even Exchange Traded Funds (ETFs) that specialize in water related companies.
Proper sanitation, removal of waste, and recycling are a worldwide problem requiring solutions from governments and corporations alike. Likewise, the need for sustainable agriculture is being addressed by new methods and technologies that can provide more food with less input.
Global Environmental Sustainability
Governments need to provide the atmosphere for businesses and people to collaborate for profits to meet the needs of global environmental sustainability. It is in the interest of all parties to do business in a sustainable manner. Why would the forest industry only cut down trees without planting new ones? Their long term survival and quest for profits makes sustainability a required practice. This is true of all industries and why many corporations are being recognized for their sustainable development.
The costs and resources needed are huge and require capital for investment. The need for capital provides investment opportunities for investors looking for long term growth and a desire to invest in industries that benefit mankind.
Investing in the Environment
Major corporations such as Waste Management (WM) and Republic Services (RSG) as well as Market Vectors Environmental Services ETF (EVX) provide examples of ways to invest in Environmental Services. There are many ways to investing in water and agriculture; examples include companies such as Archer Daniels Midland (ADM), Deer & Co. (DE), or ETFs such as Powershares Water Resources (PHO), Market Vectors Agribusiness ETF (MOO), and IQ Global Agribusiness Small Cap ETF (CROP).
The result of growing demand for environmental management services is unlimited opportunities for companies to innovate and meet the global demands for these services. New products and technologies that meet needs and or reduce costs will create profits for shareholders and provide sustainable resources to meet the needs of a growing world.
Disclosure: The Arbor Asset Allocation Model Portfolio (AAAMP) has long positions in PHO and CROP. No positions in WM, RSG, EVX, ADM, DE, and MOO. (9/17/2011)
Free Wealth Builder Newsletter
| AAAMP Blog by Ken Faulkenberry | |
|
Ken Faulkenberry earned an MBA from the University of Southern California (USC) Marshall School of Business with an emphasis in investments. Ken has 25 years of investment experience and is dedicated to helping people with self-directed investment management through the Arbor Investment Planner. His asset allocation strategies have an outstanding performance record. |
 |
