10 ESG Investments for 2021 - Part 5

These farms are good for the environment

Andrew Willis 29 April, 2021 | 4:50PM
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See last week's ESG investment for 2021 here

Andrew Willis: It’s time again for Morningstar Sustainalytics’ “10 for 2021” – which presents investors with 10 ESG investment themes that can positively contribute to advancing United Nations Sustainable Development Goals. In this series, we’ll feature a new development each week so that you can ‘create impact through thematic investing’.

This week, we’re talking about certified sustainable products – specifically land-based farming that maintains the natural environment so that it can continue providing us withfood, clothing and anything else we need on an ongoing basis.

Organic certifications, for example, are just a part of it. We also need to avoid land erosion, nutrient depletion, acidification, and other unsustainable situations – because we’ve already lost of third of the world’s productive land currently used to grow crops.

So, how can investors help? You could start by supporting some of the biggest food distributors that decide to take on sustainable products into their supply chains. One of them is Singapore-based Olam international (OLMIY) that offers an outlet for names such as Rainforest Alliance.

We see momentum building in the organic food space with the global market surpassing 110 billion U.S. dollars in 2018, up from only 15 billion in 2000. As growing issues like climate change also increasingly impact crop sustainability – we’re likely to see more activist consumption ahead.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Olam International Ltd ADR21.25 -5.30

About Author

Andrew Willis

Andrew Willis  is Content Editor for Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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