Boutique Investment Manager of the Year – Europe: Osmose
By targeting resource efficiency in its portfolio companies, Osmosis has managed to achieve an average reduction of 61% carbon, 68% water and 77% waste, across its strategies, compared to their references, he says.
Osmosis used a proprietary environmental database it developed to find and direct its portfolios to resource-efficient companies.
The database works by collecting and standardizing companies’ relevant environmental information on carbon emissions, water consumption and waste generation. The methodology then uses these key resource efficiency indicators to make investment decisions because, according to Osmosis, it identified early on that resource efficiency could be used as a predictor of business value and as a source independent of alpha. This research is supported by strong statistical evidence over time across economic sectors and geographic regions, he says.
The company also seeks to differentiate itself by evaluating only the actions taken by a company that affect its environmental record.
“The past year has been difficult for many sustainable investment funds [but] our focus on resource efficiency continued to pay off in this challenging macro environment, resulting in the onboarding of new customers from Australia, Brazil, North America, Europe and the UK United and has seen assets grow significantly,” said Ben Dear, CEO and Founder of Osmose.
Over 18 months, to the end of May, the investment manager increased its assets under management by 144%. This was done in part by winning warrants from an Australian government pension scheme and the East Sussex pension fund.