Thematics AM, Natixis Investment Managers affiliate, on investing for safety


Thematics Asset Management, an affiliate of Natixis Investment Managers, explores the growing concern of human safety during an age where climate change and natural disasters are becoming increasingly predominant whilst delving into how this theme creates opportunities to invest for a better future.

Increasing urbanisation, an ageing and shrinking workforce and adaptation to climate change are examples of long-term structural shifts that will continue to change the way we live and work in the future. Climate change has been one of the most discussed themes over the past year, escalating given Australia’s ongoing bushfire emergency of 2019 and 2020. The impact of these events holds many and devastating impacts for human safety. The paper outlines both the impact on safety and where companies providing solutions are also offering investment opportunities.

While human security debates and policies have tended to focus more on human-made disasters, such as armed conflicts and human right abuses, the threats that people struggle with following a natural disaster are similar. With human lives at stake, demand is finally increasing for the technologies and services that can help people to find secure locations when their lives are threatened and to keep basic services operational ‘when the lights go out’.

Frederic Dupraz and Matthieu Rolin, portfolio managers of the Thematics Safety Strategy said, “Adaptation to climate change is one of the long-term structural shifts that we see taking place today, and that we’ll increasingly need to face tomorrow. It permeates the theme of human safety and securing human lives during a natural disaster.

The world, sadly, isn’t getting any safer. However, the rise of mass notification and localisation technology, among others, is helping us to respond more effectively to the increasing threats posed by intensifying hurricanes and other major critical events. This, in turn, can offer investment opportunities that will help not only sustain the development of these tools and solutions but may also provide investment returns in the long-term”.

Thematic Asset Management is a signatory of the UN Principles for Responsible Investment, one of the world’s leading initiatives promoting responsible investments.

Download the white paper.

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