Resource Efficiency
The Model of Resource Efficiency
A Smarter Approach to Sustainable Investing
A proprietary global environmental dataset
In the absence of consistent environmental reporting standards, Osmosis pioneered a proprietary approach to the standardisation of unstructured corporate environmental data
Innovation
20+ Years of Environmental Data
Our Model of Resource Efficiency dates back to 2005, and covers over 2500 companies globally. It sits at the heart of our systematic equities framework.
What is Resource Efficiency?
Resource Efficiency is the effective use of scarce resources to generate greater economic value with decreased environmental impact. It reflects a company’s operational discipline, strategic foresight, and financial resilience.
Why Carbon, Water & Waste?
Our research demonstrates that a comprehensive approach to addressing the corporate environmental balance sheet – considering carbon, water and waste – will leave investors less exposed to a broader range of externality risks.
Proprietary Data
Third-party ESG data may offer convenience but falls short in delivering precision and integrity. It is therefore not suited for integration in an alpha seeking portfolio.
RESEARCH
Positively associated with desirable financial characteristics
Our research shows that more Resource Efficient companies have, on average, higher future firm value, gross profits, free cash flow, and lower leverage. They also invest more in R&D – all attributes which are considerable over long-term investment horizons.
Resource Efficient Solutions
Our Resource Efficiency Factor sits at the heart of our systematic equities framework.
Core Equities
Seeking superior risk-adjusted returns by targeting the world’s most resource efficient companies.
Multi Factor
Re-thinking traditional factors for today’s economy. Combining new investment signals to build more economically relevant portfolios.
Transition Leaders
A higher-conviction strategy targeting superior risk-adjusted returns via Resource Efficiency.
Stewardship
Active Ownership is a pivotal component of our investment approach
We seek to improve the accuracy and availability of corporate environmental disclosure, whilst encouraging companies to adopt better sustainability practices. We believe that a company which discloses its environmental footprint is more likely to measure, manage, and reduce its impact.
The Model in Action
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“Resource Efficiency gives us a way to look beyond environmental impact and understand something fundamental about a business: how effectively it turns scarce resources into economic value.”
Latest Thinking
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Macro & Policy