GLOBAL FOOD CHALLENGE
Why the global food challenge ?
World population growth, urbanisation and rising incomes are prompting a double effect on food demand: quantitatively, an increase in consumption and qualitatively, an evolution of eating habits.
By 2050, the food industry will have to feed more than 9 billion people on earth with generally better living standards, who consume more and better food. Food demand is particularly strong in developing countries where consumption not only follows but exceeds population growth.
Feeding a growing global population in a context of resource scarcity and changing climate presents a significant challenge, as it requires to increase the availability of food while simultaneously reversing and preventing resource degradation. Increasing efficiency will be needed, through an optimised use of resources and efforts made in waste management.
As food demand increases, eating habits evolve. Emerging middle classes in developing countries are eager to overcome their nutritional deficiencies and diversify their diet. Consumers globally have increasing expectations, seeking convenience and flexibility with no sacrifice of quality and nutrition. While indulgence remains a key component of food consumption, health considerations and ethics are gaining ground as a central consumer aspiration.
We invest in equities, rather than directly in commodities.
The investment universe of about 600 stocks extends throughout the global food value chain, downstream and upstream, encompassing six distinct sectors: Agriculture, Water, Food Products, Beverages, Food Retail and Restaurants. Through such a multisector coverage, we expose our investments to the structural trends that are driving food industries.
Sustainability is a key pillar on which we ground our investment philosophy. Through our sustainable approach, we endeavour to support the developments needed to allow companies throughout the food value chain to provide food in sufficient quantity and quality, while always respecting the planet and human rights.
Such sustainable approach is two-folded :
- Stock selection relies on environmental, social and governance (ESG) criteria, scanning companies’ behaviours and controversies. This sustainable filter aims to detect food chain-related issues to exclude wrong practices on a case-by-case basis.
- Implementation of impact investing to minimise our carbon and water intensities and to maintain a high waste recycling ratio, and to encourage a greater number of companies to report such data and display improvements from year to year.
Past performances are not a reliable indicator of future performances of the funds and of the funds manager.