World Environment Day – Investing in a greener future May 31, 2024

World Environment Day – Investing in a greener future

  • What is it?

    • World Environment Day is the UN’s largest global platform for environmental public outreach, celebrated annually on 5 Jun.

  • History: Established in 1973, it has become a major platform to raise awareness on critical environmental issues such as climate change, plastic pollution, and sustainable development.
  • 2024 Theme: This year’s theme is “Land restoration, desertification, and drought resilience”, with the slogan “Our Land. Our Future. We are #GenerationRestoration”. This theme aligns with the 30th anniversary of the UN Convention to Combat Desertification (UNCCD).
  • Purpose:

    • o Encourages worldwide awareness and action for the protection of our environment
    o Drives changes in consumption patterns and environmental policies
    o Inspires people to take action to combat environmental degradation

  • How it’s celebrated:

    • o Events are held worldwide by governments, businesses, NGOs, and individuals
    o Activities include conferences, clean-up drives, tree plantings, and educational initiatives

  • Websites:

    • o Official website
    o UN Environment Programme


World Environment Day is a significant opportunity to reflect on the health of our planet and take action to create a more sustainable future.

ETFs you can invest in which align with World Environment Day objectives

Here are some ETFs that align with the objectives of World Environment Day, focusing on sustainability, clean energy, and land restoration:

1. Climate-Focused ETFs:

  • SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC): Tracks companies aligned with the goals of the Paris Agreement, aiming for a net-zero carbon future.
  • iShares Global Clean Energy ETF (ICLN): Invests in companies involved in clean energy technologies like solar, wind, and renewable energy infrastructure.
  • Invesco WilderHill Clean Energy ETF (PBW): Focuses on clean energy companies, with a tilt towards smaller and mid-cap firms.


2. Environmental Sustainability ETFs:

  • SPDR S&P 500 ESG ETF (EFIV): Tracks companies within the S&P 500 that demonstrate strong environmental, social, and governance (ESG) practices.
  • iShares MSCI USA ESG Select ETF (SUSA): Focuses on U.S. companies with high ESG ratings, considering environmental factors alongside social and governance aspects.


3. Land Restoration and Agriculture ETFs:

  • Global X Millennials ESG & Consumer ETF (MILN): Invests in companies addressing climate change and sustainability challenges, including land and water conservation.
  • Timber ETF (WOOD): Provides exposure to timber REITs that own and manage forests, potentially contributing to sustainable forestry practices.
  • iShares Global Agriculture ETF (COW): Offers broad exposure to the agriculture sector, which plays a crucial role in land management and resource utilisation.


Important Considerations:

  • Research the specific ETF’s holdings: While the overall theme might align with World Environment Day, it’s essential to understand the underlying companies within the ETF to ensure they truly prioritise sustainability and land restoration.
  • Diversification: Consider including a mix of ETFs from different categories to spread your investment across various environmental focus areas.
  • Fees and Performance: Like any investment, compare expense ratios and historical performance to choose ETFs that align with your financial goals.

Remember, these are just a few examples, and it’s crucial to conduct your own research before making investment decisions.


How Phillip Securities can help you find ETFs to align with World Environment Day aims

Phillip Securities offers various tools and resources to help you find ETFs that align with World Environment Day’s objectives:

1. POEMS Platform:

  • ESG Information Page: This page allows you to learn more on Environmental, Social, and Governance (ESG) criteria such as environmental impact ratings, carbon footprint, and involvement in clean energy or sustainable practices.
  • Thematic Investing: POEMS provides access to pre-built thematic portfolios including those focus on sustainability, clean energy, and climate change solutions. These portfolios often include relevant ETFs aligned with World Environment Day’s goals.
  • ETF Thematic Investing: POEMS provides access to a wide range of ETFs across various themes, including those focus on sustainability, clean energy, and climate change solutions. These portfolios often include relevant ETFs that align with the goals of World Environment Day.
  • Research Reports: Phillip Securities publishes research reports analysing ESG investing trends and highlighting specific ETFs with strong sustainability characteristics.


2. Phillip Securities Investment Advisors:

Phillip Securities offers investment advisory services where you can connect with a financial advisor specialising in sustainable investing. They can:

  • Analyse your investment goals and risk tolerance: Understanding your individual preferences is crucial for tailoring an investment strategy that aligns with both your financial needs and environmental values.
  • Recommend suitable ETFs: Based on your risk profile and sustainability focus, your advisor can suggest specific ETFs that fit your investment criteria.
  • Create a diversified portfolio: They can help you build a well-balanced portfolio that incorporates ETFs from various environmental sectors like clean energy, sustainable agriculture, and land restoration.


3. Phillip Securities Research and Insights:

  • Market Updates: Phillip Securities regularly publishes market insights and commentaries that discuss ESG investing trends and the performance of sustainable ETFs.
  • Webinars and Events: They occasionally host webinars or events specifically focused on sustainable investing, providing valuable information on relevant ETFs and the latest developments in the environmental finance landscape.

By utilising these resources and consulting with Phillip Securities investment professionals, you can effectively navigate the world of sustainable ETFs and make informed investment decisions that align with your values and World Environment Day’s objectives.


Remember:

  • Clearly Communicate Your Goals: When interacting with any financial advisors, clearly articulate your interest in aligning your investments with World Environment Day’s objectives, particularly land restoration and environmental sustainability.
  • Do Your Research: Even with Phillip Securities’ resources, it is still important to conduct your own research on the recommended ETFs. Understand their holdings, investment strategies, and alignment with your values before making investment decisions.


Disclaimer

These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

About the author

Elston Soares

Elston Soares is an editor with Phillip Securities Research

Related Articles

Boosting ETF Portfolio Efficiency: Reducing Tax Leakage Through Smarter ETF Selection Boosting ETF Portfolio Efficiency: Reducing Tax Leakage Through Smarter ETF Selection
How to Build a Diversified Global ETF Portfolio How to Build a Diversified Global ETF Portfolio
The Complete ETF Playbook for Singapore Investors: From Beginner to Advanced Strategies The Complete ETF Playbook for Singapore Investors: From Beginner to Advanced Strategies
Tariff Tantrums: What Happened Last Time Round, What Will Happen Now Tariff Tantrums: What Happened Last Time Round, What Will Happen Now
Market Journal

Join Events & Seminars

Learn best practices and latest market outlook from experts and special guests
Market Journal

Hear & Ask our Experts

Join live weekly market calls
Market Journal

Read Popular News & Reports, Technical Pulses

at www.poems.com.sg/stock-research
Market Journal

Subscribe to our YouTube Channel

New video every week

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com