Credit Suisse reiterates ESG investment strategy

Credit Suisse has reiterated its key investment strategy for environmental, social and governance investors.

Assessing 17 sustainable themes, the bank said that based on its current quality and momentum scores, automation, building energy efficiency, ageing, and industrial energy quality were "the most attractive themes relative to the other 13 themes".

Those with the least attractive mix of quality and momentum were infrastructure, hydrogen, wind and solar.

Credit Suisse said: "Virtually all of our themes saw a pull back last month. Interestingly, we find that energy storage and wind were the two best performing themes. In case of energy storage, we note that the theme benefits from a positive change in average momentum scores, as well as having a majority of its constituents seeing upgrades from analysts to their 12-month EPS estimates.

"Wind, on the other hand, has the second lowest share of companies seeing earnings upgrades, at 29%.” Education was the lowest, at 22%.

"Investors interested in companies with strong earnings revisions support should take a look at our water theme," the bank added.

It concluded: "Themes that trade at the widest premium to history are energy storage, solar and wind-related stocks. Themes for which multiples appear less challenging are ageing and circular economy-exposed companies, now at a discount to their three-year average for the first time.

"Themes that have experienced the strongest de-rating in terms of price earnings during the past six months include circular economy - plastic, transport energy efficiency and building energy efficiency."