Stropro, a platform for wholesale and sophisticated investors has reported a surge in demand for ESG-themed stocks, following the European Commission committing €1 trillion ($1.6 trillion) towards environmentally responsible products.
The $1.6 trillion investment by the commission is part of the European Green Deal, a set of policy initiatives aiming to make the continent carbon-neutral by 2050.
Key sectors being targeted through the scheme include clean energy, building and renovation, sustainable mobility and recycling.
Anto Joseph, chief executive at Stropro, said Australian high-net-worth investors have been increasingly drawn to tactical strategies offshore – with the European Green Deal providing a strong opportunity.
“A growing number of sophisticated Australian investors are seeking thematic investment opportunities in response to structural changes in areas like technology and government policy,” Mr Joseph said.
“The European Green Deal is a once-in-a-generation opportunity. The European Commission has a clear investment objective over a 30-year horizon as the continent transitions to a cleaner future. Australian investors want to capitalise and be part of that green growth story.”
Stropro is offering access to an unlisted Green Deal Index managed by Societe Generale, with 43 companies including Siemens and Schneider Electric that are expected to support Europe’s carbon-neutral transition.
Stropro chief product officer Ben Streater reported the index has returned 38 per cent for the year to date and more than 52 per cent in 2019.
“Wholesale investors are more agnostic when it comes to investing,” Mr Streater said.
“They are eager to put their money to work beyond our shores. A number of investors want to increase diversification in their portfolios particularly given their overexposure to banking, mining and property.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].