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Investing in the Necessities.
The Pillars of Human Existence:Water, Food, and Energy

What are the key themes in Essential Products investing?

Essential Products investing encompasses investments in water, food and energy: energy resources and renewable energy themes. The objective of Essential Products investing is to capture investment opportunities from "technology development" and "business model transformation" within the water, food, and energy sectors. By strategically investing in companies addressing supply-demand gaps in these essential themes, the portfolio seeks to generate sustainable growth and positive social impact.

Benefits of Essential Products investing include:

1.Creating a stable and sustainable demand: Essential products are necessities for human survival and daily life. This inherent demand tends to remain relatively stable regardless of economic conditions.

‍2.Technological Innovation: Investments in essential products aren't limited to traditional industries. There's ongoing innovation in water treatment, sustainable agriculture, renewable energy, and energy efficiency. These advancements can create opportunities for both established companies and startups.

‍3.Environmental and Social Impact: Many subsets of essential product industries are closely tied to environmental and social considerations. Investing in companies that prioritize sustainability and ethical practices can align with your values and have a positive impact on the world we live in today.

Water and Food

Water not only holds significant importance in agriculture but also profoundly affects the accessibility of clean drinking water, particularly in third-world nations. The World Health Organization (WHO) reports that 785 million people still lack access to basic drinking water services². Water scarcity affects over 40% of the world's population³, leading to economic losses and environmental challenges.

‍The critical role of agriculture in feeding the rapidly growing population is evermore intensifying. The Food and Agriculture Organization (FAO) estimates that global food production needs to increase by 60% to meet the demand by 2050⁴. However, land degradation, water scarcity, and unpredictable weather patterns pose threats to food production.

Energy Resources & Renewable Energy

The global energy demand is experiencing rapid growth due to urbanization and industrialization. The rising middle-class populations in emerging economies also contribute to increased energy consumption as more people gain access to energy-intensive goods and services. The International Energy Agency (IEA) predicts that global energy demand will increase by 1.3% each year to 2040⁵. The transition to renewable energy is crucial to mitigate climate change, as fossil fuels continue to dominate the energy mix.

‍The advent of renewable energy is primarily driven by environmental, economic, and social considerations. Renewable energy such as solar, wind, and hydro produce significantly lower greenhouse emissions. By shifting to renewable energy, we can reduce carbon footprint, mitigate the impacts of climate change, reduce air pollution and increase energy security.

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