Sustainability challenges facing the chemical industry: What investors need to know
- 01 November 2023 (10 min read)
Key points:
- Chemicals help form the backbone of modern economies, providing numerous everyday benefits and enabling innovation. But how can we continue to reap their benefits and simultaneously protect the environment?
- Not all chemicals are harmful. However, there are substances which can negatively affect nature and human health. The impact of hazardous chemicals has the potential to be financially material to the companies in which we invest
- Responsible investors looking to safeguard biodiversity can proactively engage with companies in the chemical industry, advocating for greater transparency on exposure levels and the use of hazardous chemicals, as well as their reduction – with a particular regard for persistent ones
- In parallel, they can consider allocating capital towards sustainable solutions via companies developing safer alternatives and deploying technologies to address existing environmental challenges
Disclaimer
This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.
Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.
Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.
Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate London EC2N 4BQ
In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.
Image source: Getty Images
Risk Warning
The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.