CPR Invest Blue Economy

The oceans, a vital resource under threat

Oceans and coastal ecosystems are the first producer of oxygen on Earth, far ahead of forests. They also play a major role in absorbing CO2 emissions.

Although they are true climate regulators and vital resources for mankind, they are under threat from human activities. Threats include global warming (leading to acidification, higher sea levels and higher water temperatures), overfishing, plastic waste and water pollution.

Acting to protect oceans therefore requires taking urgent action to limit greenhouse gasses, sustainably exploiting the resources they provide to us, and controlling the negative impacts we have on them.

The world’s seventh-largest economic power

The value of ocean economy is estimated to $24 trillion. This “blue economy” generates GDP of $2.5 trillion annually. If oceans were a country, they would be the world’s seventh-largest economic power!

Indirect output (from coastal activities, tourism, etc.) accounts for almost one third of this value, followed by direct output (fishing, algae farming, etc.), marine transportation, and oceans’ environmental benefits.

The OECD estimates that the ocean economy will account for 5% of global GDP in 2030, and that the number of jobs related to it will have risen by 130% from 2010 to 2030, led by offshore wind power and harbour activities.

Our comprehensive and transparent sustainable approach

To tap into the blue economy’s potential growth and to help protect the oceans, we have defined an investment universe through two prisms:

• the marine ecosystem, including aquaculture, commercial fishing, seaborne transport, biotechnologies, infrastructures, renewable energies, tourism, healthcare and other areas;
• activities that help preserve oceans, including managing waste and water quality, carbon sequestration, etc.

This obviously comes with a 360° sustainable approach from the universe definition to portfolio construction and including dialogue and engagement with companies, as well as backing major ocean-related initiatives.

The fund’s objective is to outperform global equity markets over a long-term period by investing in international equities involved in the Blue Economy defined as the sustainable use of marine resources and the protection of marine ecosystems.

The investment process integrates a sustainable approach through Environmental, Social and Governance (ESG) criteria. As such, companies with the worst ESG behaviours  and highest controversies are excluded from the investment universe.

The fund is actively managed. Stocks are selected according to a combined top down and bottom up approach. The final portfolio including between 60 and 80 stocks seeks to reconcile the search for performance and the improvement of extra-financial indicators.