BNP Paribas Wealth Management is advising its clients on investments in waste management, as it identifies the sector among its 10 investment themes for 2019.
“This theme identifies investment opportunities in companies offering innovative solutions for water management and more efficient waste treatments”, BNP said in a statement on Tuesday. The wealth manager’s 2019 Investment Themes outlines why: “Many companies contribute to the development of new, more effective and cleaner mechanisms for water and waste treatment.
Given the high potential growth in this activity, they represent an attractive investment opportunity in the long term.” This theme is likely to be popular among the rising number of impact investors, people who invest in companies creating a positive social or environmental impact.
Water and sanitation was the second most important cause for impact investors after health according to a report by Barclays Bank .
Many impact investors score their target companies using the UN Sustainable Development Goals. One such goal is to half food waste at the retail and consumer level by 2030. Currently, a third of all food is wasted according to the UN.
Hand-in-hand with waste management, BNP believes, will be a greater focus on mobility in order to tackle the saturated and polluted transport systems of ever-growing cities.