Luke Davis, CEO of IW Capital discusses growing green trend and the companies that demonstrate this desire to go green.
Joe Biden is this week hosting an online climate summit following the announcement in January that the United States would rejoin the 2015 Paris Agreement to fight climate change. He has promised to put the US on track to net-zero emissions by 2050 and released a $2 trillion “American Jobs Plan” last month with measures to boost clean energy and help the country fight climate change.
This is not unique to the US, with many other countries around the world have also been planning to reach net-zero greenhouse gas emissions by 2050 and the UK leading the way with new targets to reduce emissions drastically by 2035. This has put green and sustainable companies firmly in the sights of UK-based investors, perhaps this year more than ever before.
To understand the impact of this growing trend, IW Capital, a specialist SME private equity house, have commissioned research into the desires of investors in 2021.
– Nearly half (45%) of UK investors will back green or sustainable companies in 2021
– 44% of investors are now looking to back UK-based companies, instead of global firms
– 19% of investors believe the coronavirus pandemic has opened more investment opportunities than it has closed
– 36% are backing stocks and shares an investment option
– 34% are investing in life sciences, including Biotech, Medtech & Pharma, a 160% increase from 2019
– 29% of UK investors will back online retail businesses and technology
– Over a quarter (27%) of investors are investing in property
– 26% will invest in Fintech
– 18% of investors will back the creative industries
– 16% are investing in the hospitality sector
Luke Davis, CEO of IW Capital:
“This data does not come as a surprise given the interest in the sector over the past year. What may surprise some analysts is how much more interest there is in sustainable companies than even stocks and shares or property.
“A great example and a recent investment by IW Capital has seen a company called Transcend Packaging almost double their workforce following significant growth. They aim to create sustainable packaging products that offer a meaningful contribution toward reducing plastic waste as leading brands work to minimise the ecological impact of their packaging at the end of its useful life.
“Working with innovative and future-facing companies like SaveMoneyCutCarbon, Transcend Packaging and Impact Recycling Limited has shown us how important green tech companies are to the UK economy and it has highlighted the continued drive towards this sector and in supporting a more environmentally friendly economy.”