In light of the current macroeconomic outlook, we have been approached by a number of parties, asking how the eco-economics thesis works in a market where the US administration is against environmental and social regulations, and where several companies are dropping their targets.

Our approach remains intact, specifically in this market, given that:

* Most incentives in the ESG space are at the state level, and not federal, so while some environmental regulations might be relaxed, the incentive structure remains intact.

* Companies that drop targets never intended to meet them in the first place. Eco-economics focuses on businesses that make progress, quarter on quarter, over a five-to-ten-year period, so these programs are embedded into the strategy of the firm.

* Having said the above, we actively track companies that drop targets, have ESG / greenwash litigation against them, with a view to taking a short position on these.

* Eco-leaders operate by targeting the younger generations (under 30 age group) who aspire to create a digitally interconnected, sustainable future.

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