Environmental investments, what do they really mean?
Since 1950, the world’s population has tripled, and increasing urbanization and prosperity are leading to ever more intensive use of natural resources and environmental pollution. In the public discussion, CO2 emissions are the main issue for environmental pollution and energy consumption for resource efficiency. In fact, however, there are a much larger number of harmful emissions, which may include, for example, radioactive radiation, noise, or even a variety of chemical substances. Similarly with natural resources, it goes far beyond oil, coal and metals.
Efficiency in the food industry, for example, also plays a major role for Ambienta; here, 57% of calories are lost today across the entire value chain during harvesting, processing, and distribution. At Ambienta, we measure sustainability using a matrix of 11 metrics for environmental pollution and resource efficiency. This ranges from water savings to pollutant emissions, to biodiversity. The products and services of our portfolio companies save, for example, 27 times the water consumption of New York with more than 20 million inhabitants per year.
We see the trend toward sustainable products and services as an irreversible necessity against the backdrop of a world population that continues to grow and consume at a faster pace.
We can find examples of sustainable products in all industries, similar to how we find digitization solutions in all industry segments today. Our portfolio company Oskar Nolte GmbH, for example, saved around 23,000 metric tons of solvents hazardous to the environment and health last year (equivalent to the volume of around 1,700 tanker trucks) through its water-based wood coating systems. Buildings represent 44% of European energy consumption (far more than vehicles) and so we find numerous products that reduce this consumption, e.g. through recyclable insulation materials, efficient heating systems as well as smart home technologies that also include software solutions. The packaging industry is also increasingly using sustainable raw materials, such as biodegradable plastics, to combat pollution of the world’s oceans. Consumers are also buying with greater awareness of sustainability; natural cosmetics is just one such example.
Ambienta invests in companies headquartered in Europe whose products or services contribute to pollution control or the efficient use of natural raw materials.
We take both majority and minority stakes, typically investing equity of between EUR 30m and EUR 75m with the capacity to invest up to EUR 150m for individual cases. — Our ambition is to actively promote the international growth of our businesses, as sustainability solutions are experiencing increasing demand globally and our European technologies are technically among the most advanced in the world. In this way, the ecological and economic benefits can go hand in hand.
Ambienta is a leading European private equity firm with offices in Milan, Düsseldorf and London. Focuses on growth investments in industrial companies that focus on trends in environmental technology. Ambienta manages the world’s largest capital fund in this sector, with more than €1 billion, and has already completed 27 resource efficiency and environmental investments across Europe. With industrial and management expertise as well as global industry contacts, Ambienta actively contributes to the development of its portfolio companies. For more info, visit www.ambientasgr.com.