It is difficult to draw many broad conclusions from reporting season due to the wide dispersion and out of date market analyst expectations, the rapid development of the economic landscape and the government support measures, but it is possible to categorise companies into three broad buckets:
1)Companies that are benefitting from rent relief, government stimulus and a short term change of consumer behavior and spending habits (we have been selling exposures to these companies);
2)Companies that are experiencing increased but likely more sustained revenue growth (we are continuing to build positions in these companies);
3) Companies that have recorded lower profit growth now through being conservative in their provisioning but should benefit in future periods (we are maintaining sizeable positions in these companies).
Full report attached
Ethical Partners are pleased to see Australia take the next steps to implement mandatory climate reporting with the release of draft climate standards, which we provided feedback on.
Ethical Partners have continuously called for the provision of high quality, comparable data on company’s climate governance and carbon metrics, which we believe is imperative for investors to fulfil the potential of responsible investment.
Ethical Partners have been proud to have been active supporters of the TNFD Forum over the past few years, and to provide regular feedback on the development of the official TNFD recommendations, which were launched in December, as well as to be active members of the RIAA Natural Capital Working Group.