Inside sustainable investing, Credit score Suisse says there’s one theme traders ought to concentrate on

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Sustainable investing traits are touching each a part of the market, and Credit score Suisse believes one theme stands out: firms targeted on pushing energy-consuming industries like buildings and the transportation sector towards a zero-carbon world. Amid a surge in ESG investing, the agency stated these shares ought to see elevated momentum below President-elect Joe Biden given the previous vp’s formidable local weather targets.

Constructing a zero-carbon world is one among 11 themes Credit score Suisse has categorized below its broader sustainable investing umbrella. Different sections embrace schooling, variety, water and renewable vitality. The agency famous that the latter has been the top-performing theme over the previous 12 months, however that a lot of the upside is already priced into these shares. Which means key metrics — together with worth, development and profitability — look extra engaging throughout different themes.