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by Tanay Kanungo4 views·Updated Dec 2, 2020
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  1. we greenness consulting has been hired as consultant into public
  2. a pension institution.
  3. Our task is to provide recommendations regarding PUBLICAS investment strategy
  4. with focus on mobility, part of its investment portfolio.
  5. Re recommend investing Maurin the automotive companies that are focusing
  6. on electric hydrogen or hybrid technologies and working towards a
  7. sustainable future.
  8. We also recommend divesting from the automobile companies that solely
  9. manufacture fossil fuel based auto Mobil's.
  10. The rationale behind this is explained in this video.
  11. When evaluating the automotive industry, conventional internal combustion engine vehicles
  12. and their emissions are a controversial topic.
  13. Because of this, the car industry seems risky for sustainable
  14. investors. Furthermore, additional risk comes from some governmental and political
  15. movements to limit the number of these vehicles in cities
  16. such a spans seen in Germany.
  17. Unfortunately, the carbon emissions from internal combustion and vehicles are
  18. not. The only sustainability concerns in the automotive industry, for
  19. example, is the electricity used to power electric vehicles, sometimes
  20. obtained from fossil fuel power plants.
  21. Moreover, the mining of rare earth elements such as lithium
  22. for the production of batteries has a larger negative environmental
  23. impact. In addition to that, studies have shown that tie
  24. aware on all vehicles can contribute 1000 times small to
  25. total emissions than burn fuel.
  26. However, numerous financial opportunities are created by sustainable solutions in
  27. the auto industry, particularly in companies manufacturing, electric and hybrid
  28. vehicles due to the growth and the consumer market and
  29. sales. Moreover, these companies are connected to research and innovation
  30. in the growing market for renewable energy, with forecasts for
  31. long term growth.
  32. There are several risks for conventional common factors such as
  33. environmental, economic, regulatory and reputational risks, the scarcity of the
  34. resource oils and environmental and economic risk.
  35. Hence, the oil price will increase in the future, according
  36. to the Hotel ING rule, which might motivate people to
  37. switch the alternatives off conventional cars.
  38. This and lower sales and the overall financial performance of
  39. conventional car only companies.
  40. Additionally, there regulatory risks for example, increasing bands off cars
  41. with 12 combustion engines from cities which might cost decreasing
  42. sales of conventional cars and therefore lower stock prices.
  43. But companies that provide alternative technologies like electric vehicles, hydrogen
  44. fuel cells or hybrid cars could take advantage of that.
  45. Furthermore, ethical preference changes has seen in the product for
  46. future movement towards sustainable solutions boost the sail off new
  47. technologies simultaneously.
  48. The reputation of conventional car manufacturers has taken damage from
  49. the Volkswagen scandal, and Volkswagen itself has suffered from huge
  50. decrease in profitability.
  51. Often, sustainability is part of a company's cradle when the
  52. company provides sustainable solutions.
  53. In addition to that, the policy making is going more
  54. and more in the direction of establishing sustainable energy, such
  55. as window solar in energy instead of fossil fuels.
  56. To meet the girls off the Paris Climate agreement.
  57. Sustainable investment incentives can therefore reduce the environmental footprint on
  58. one side at the investment footprint.
  59. On the other side, we want to recommend a mixed
  60. investment strategy to public are the first approach we want
  61. to implement this SG integration.
  62. Assuming that expected financial performance is a function of years
  63. to ratings, the financial performance should be better than better.
  64. The USD readiness.
  65. Due to this reason, we recommend investing more heavily into
  66. companies with the best yes to ratings.
  67. The Easter data includes, amongst other things, natural resource scarcity,
  68. pollution, environmental opportunities and climate risks.
  69. As an example, electric vehicle sales will increase due to
  70. legislation in Europe and China in the coming years, which
  71. might therefore be reflected in the financial performance off those
  72. companies and their shareholders like public, to implement this further,
  73. we apply the best in class approach and this site
  74. that are cut off level is to be better than
  75. average. The SD ratings we use are provided by sustainability
  76. X and R S D risk ratings.
  77. The lower the S G rating, the lowest the risk
  78. the average off the S to risk ratings in the
  79. automotive sector as a value off about 25 we recommend
  80. to invest Maurin companies with yes, you risk ratings below
  81. 25 which results in the company's Yamaha Motor, Persia Mitsubishi
  82. Corporation and Harley Davidson.
  83. Certain automotive companies are facing potential decrease in demand caused
  84. by the imposed environmental legislation and taxes, which makes them
  85. a risky investment.
  86. By using this mixed investment strategy, these risks can be
  87. minimized with a new tax and legislations.
  88. It is certain that more people are turning towards electric
  89. and hybrid cars, and this transition has made easier by
  90. the constant technological development that makes these vehicles more desirable.
  91. Our investment approach is meant to maximize financial returns in
  92. the long term by choosing low risk companies who have
  93. an existing or growing electric vehicle portfolio.
  94. This is done to include this market, which is expected
  95. to grow exponentially in the coming years, thus being future
  96. proof. Furthermore, by choosing companies who produce both conventional and
  97. electric vehicles, we ensure that the large financial returns from
  98. these still enormous conventional market segment are taking advantage off.
  99. Although automotive giants based solely on conventional technology are a
  100. major market players in the present, their market share and
  101. profitability towards the stakeholders is bound to diminish in the
  102. future. Due to several factors such as rising awareness, environmental
  103. concerns, depleting resources and governmental policies, this makes him unsuitable
  104. investment for long term profits.
  105. However, our investment recommendation, based on SD integration and best
  106. in class strategy, includes companies that have a considerable mark
  107. chair in the present and a great potential in the
  108. future due to their existing or developing electric product range.
  109. This will ensure steady returns in the present long term
  110. profits in the future and a low investment footprint by
  111. public up