The new crown has not gone, monkeypox has come again.

At the same time, recently, with the continuous high inflation and the increasing expectations of tightening monetary policies such as the Fed’s interest rate hike and balance sheet reduction, the U.S. stock market has entered a stage of adjustment. The sharp rise in prices, etc., further magnified the volatility of overseas markets, and the VIX panic index $$ in the mid-panic period to go long ETN-iPath S&P (VXZ.US)$ also had a pulse-like rise.

In this context, how should ordinary investors invest? What opportunities are there to watch? In this regard, the latest views of leading asset management institutions with rich investment and research resources are of considerable reference value.

This issue brings the latest investment views from Schroders Investments.

In a new report, Samuel Thomas, sustainable investing analyst at Schroders Investments, said waste management has been one of the main challenges facing society. Given how little the industry has changed over the past few hundred years, the time is ripe for change.

Why is waste a problem?

Poor waste management is one of the causes of climate change, which can directly affect ecosystems and cause air, water and land pollution.

For example, 37% of global municipal solid waste is sent to landfills. Human-related methane emissions from these waste treatment plants alone account for 8-10% of the total.

Food waste is a pressing problem. According to the Food and Agriculture Organization of the United Nations, the economic losses caused by food waste are estimated at $1 trillion each year. This could exacerbate water scarcity, biodiversity loss, and lead to harmful health impacts and soil erosion. All of the above have the potential to increase the risk of conflict and loss of livelihoods.

Is the waste regulated?

There is increasing social and political pressure on waste generators to dispose of their waste in a more sustainable way. As a result, pressure from regulation is continuing to increase.

Regulators appear to be on the same page, pursuing a “polluter pays” principle, which could include increased waste import and export taxes, higher admission prices for waste treatment plants, and increased fines for poor waste management and illegal dumping.

Exporting waste to other countries is a common practice due to the strong international trade market for waste. Currently, the regulator intends to encourage countries to dispose of waste generated within their own borders, instead of exporting waste to other countries.

These changes in the regulatory environment have increased the need to develop innovative waste treatment methods that are in line with social responsibility and environmental protection principles.

Therefore, companies with relevant new technologies are bound to usher in more opportunities.

What are the opportunities for investors?

Given the expected rapid growth of municipal solid waste in the coming decades, Schroders believes that the following areas are particularly attractive:

First, artificial intelligence and automatic classification.

It is estimated that more than half of waste management tasks in material recovery facilities can be automated. Using video surveillance, 3D laser scanning and metal sensors, combined with machine learning and advanced robotics, the accuracy and sensitivity of automatic classification is significantly improved. $ Allianz Global Artificial Intelligence Stock Fund (LU1548497426.HK)$ $ Allianz Global Artificial Intelligence Stock Fund (LU1548497426.HK)$

Second, turn waste into energy.

This is a method of producing electricity or heat by processing and disposing of waste. It reduces the need for waste treatment plants and the reliance on fossil fuels, and in some cases reduces environmental pollution.

Schroders believes this will be the fastest growing waste management industry over the next five years. $Schroders Global Fund Series – Global Continuous Growth (LU0557290698.HK)$ $Schroders Global Fund Series – Global Continuous Growth (LU0557290698.HK)$

This article is reprinted from: https://news.futunn.com/post/15774247?src=3&report_type=market&report_id=206389&futusource=news_headline_list
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