Green Investment Overvalued Or Will It Look Fantastic Value In Years to Come?
As the planet moves towards becoming greener with environmentally friendly, socially responsible and corporate governance investing (ESG), demand is outstripping supply driving values up to the point where the question is whether the green investment sector is overvalued.
Today, £ for £ it probably is overvalued but the sector is going to grow exponentially so perhaps it is not. Globally, many countries have signed the Paris Climate Agreement and as such it is legislation that will force many businesses and individuals to become greener with a carbon neutral target over the coming years.
Businesses are innovating and we believe there will be even more opportunities over the coming decades.
We liken these seismic changes in how we live to the ‘techno’ revolution of the last 30 years. Imagine where your investments would be today if you had invested in Apple, Google and Microsoft 30 years ago. More recently, what if you had bought bitcoin 10 years ago?
This is where we believe the ESG market is today. Markets are growing in value and with governments pushing a greener agenda, it can only grow further.
We suggest in 10 years, many investors will look back and wish they had invested in ESG earlier.