Sustainable Urbanisation

Sustainable urbanisation is a global phenomenon and one of the greatest challenges of our century. Many investment opportunities are to be seized to make the city of tomorrow bigger, smarter and more sustainable.

Why sustainable urbanisation?

The 21st century will undoubtedly be the century of cities, which concentrate an increasing share of the world's activity and population. While powerful demographic and economic drivers - particularly in emerging countries - are fuelling the theme with growth potential, they also confront it with environmental, social and economic challenges.

The United Nations have identified sustainable urbanisation as a sustainable development goal (SDG).

Sustainable development will leave its mark on urbanisation, and inspire solutions to manage the influx of population, fulfill the functional needs and improve the quality of life of urban dwellers while contributing at the same ti me to the reduction of the environmental impact of cities. The transition to the city of tomorrow is a source of many opportunities: from urban infrastructures, the cornerstones of economic development and energy transition, to technological innovations for an efficient and sustainable city management, to the invention of new services to facilitate the daily life of city dwellers.

Our approach

The definition of the investment universe approaches the theme of urbanisation in its entirety. The sector coverage is structured around five pillars, which are identified by the management team and represent the urban ecosystem: Construction, Mobility, Connectivity, Resources and Services. The investment universe, which includes approximately 500 stocks, covers all countries and has a wide sectoral scope, being this way exposed to all the growth drivers of the theme.

On the environmental front, intelligent building solutions could reduce energy consumption by 40%, water consumption by 30% and CO2 emissions by 15%

In order to exclude companies considered incompatible with a sustainable and harmonious urban development, we use ESG overall scores and specific criteria related to the theme, as well as controversy data.