Stocks that Profit from Climate Change

Global warming, a growing global population, dietary changes in developing economies, and declining arable land create potential investment opportunities in agriculture

Fidelity International 16 October, 2013 | 7:00AM
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Read more on ethical and sustainable investing in Morningstar's Ethical Investing Week 2013.

The latest spike in food prices seems to be following an increasingly familiar pattern. In 2008, a spike in the price of many of the world’s agricultural staples triggered riots across the developing world as the UN admitted that more than a billion people were hungry. In 2010, failed crops and an export embargo in Russia sent cereal prices spiralling again. This year, the blame is being attached to America’s worst drought in half a century and environmental “food for fuel” legislation that ensures the bio-fuels industry eats first. The short term drivers might be different on each occasion but the results are the same: the global food supply is now highly susceptible to shocks.

Notably, unlike four years ago, when there appeared to be a significant speculative element to the price rises, today’s crisis appears to be a genuine supply problem.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Industries Qatar QSC14.95 QAR0.00
Shenguan Holdings Group Ltd0.04 EUR0.00
Tesco PLC280.65 GBP0.00Rating
The Mosaic Co34.47 USD0.00Rating

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Fidelity International

Fidelity International  

is a global leader in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific.