Resource Efficiency
Rapid growth in the global population combined with increasing wealth in emerging economies is placing a higher strain on a finite resource base, driving the need for more efficient consumption and production as well as expanding the resource base through new solutions. The Nordic countries have a strong base of companies focused on addressing these problems, particularly in the food production, circular economy, infrastructure, and waste and recycling segments.
The Nordic countries have also historically been leaders in energy efficiency technology, due to the presence of a large traditional energy industry and a population that care about environmental conservation. This has created a thriving universe of SMEs active in the sector.
MEGATRENDS
- Resource Scarcity
- Population Growth
- Energy Efficiency & Climate Change
Investment Strategy
Focus
Aquaculture
Problem
In a world with strong population growth, the demand for food production increases at a critical rate. There is also a need for reducing greenhouse gas emissions from food production.
Solution
Aquaculture has potential to help increase the efficiency of food production and to ensure good health and well-being due to high protein quality and Omega 3 content, while having a low environmental footprint.
Investment Thesis
Three main trends drive the demand for seafood: an increasing population, focus on sustainable food production and the trend towards healthy eating.
Focus
Recycling
Problem
Today’s consumption pattern creates more than 2 billion tons of waste each year globally. Much of this waste ends up either in landfills, in nature or in the ocean, thereby polluting the world’s natural habitats.
Solution
Recycling of materials such as metals, plastic and wood ensures that less material ends up in landfills or in nature, possibly polluting natural habitats, and reduces the strain on finite resources.
Investment Thesis
Increased urbanization and focus on sustainability, in combination with higher standards of living, create a growing push towards taking better care of waste.
Focus
Circular economy
Problem
Global waste levels are expected to grow by 70% over the next 30 years unless urgent action is taken.
Solution
Contrary to recycling, circular economy enables direct reuse of products, thus reducing the amount of processing that recycling requires.
Investment Thesis
Sustainability focus and potential economic benefits have led to circularity being placed in the spotlight – with an increased desire for better care, reuse and upcycling of products.
Focus
Energy efficiency
Problem
With an increasing population and a growing middle class, the reduction of greenhouse gas emissions requires decarbonization and more effective use of the world’s energy sources.
Solution
By providing tools that promote sustainable consumption of energy, the sector helps reduce a company’s total carbon footprint.
Investment Thesis
Population growth, urbanization and a growing middle class drives demand for energy, which combined with climate focus generates a push towards energy efficiency.
Focus
Water treatment and infrastructure
Problem
Water is essential for human life, and water shortage represents one of the most important challenges to the world’s population.
Solution
Companies providing solutions for water treatment and infrastructure services help provide access to clean water and sanitation.
Investment Thesis
Growth in this sector is supported by five underlying drivers: population growth, economic growth, urbanization, focus on sustainability and water shortage for large geographic areas.
