Population growth, soaring energy demand, and water scarcity have created a multi-decade secular investment opportunity to re-envision global resource efficiency and resiliency.
We believe there is a mispriced alpha opportunity in high quality, growth-oriented companies scaling solutions tied to the green economy, offering investors idiosyncratic exposure to megatrends that we expect will outperform over a full market cycle.
Our focus on finding climate innovators with materiality, profitability, and financial flexibility is at the heart of our value creation.
ScopeFour has developed a proprietary universe of ~3000 global all-cap publicly traded companies offering one or more climate solutions as a service or product. This versatile platform is the starting point for our alpha generation.
Fact SheetOur ranking factors are combined with deep fundamental analysis to build a curated portfolio. Key attributes for a company’s inclusion into the portfolio are three-fold:
Determining whether a company is materiality tied to one or more climate solutions is not readily identifiable by using commercial datasets. We use deep fundamental analysis to pinpoint exposure through a company’s revenues, and where appropriate, also examine R&D, and capital expenditures.
Each portfolio holding has one or several climate and fundamental catalysts that will lead to future stock price appreciation. The companies with the strongest and most defensible catalysts will be assigned a higher multiple.
We seek companies with the ability to fund and grow their exposure to the business channel that reflects the climate solution. We look for strong free cash flow generation, low EBIT coverage and a history of earning returns over the company’s cost of capital.
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