According to scientists, methane accounts for about 30 percent of global warming and is up to 80 times more harmful than carbon dioxide.
More than half of these toxic emissions come from agriculture. Livestock alone produce about a third of global methane emissions, largely from belching.
Dutch health and nutrition group DSM-Firmenich has created a digestive aid for these grass-eating ruminants.
Creating a bad smell: according to scientists, methane accounts for around 30% of global warming
Just a quarter teaspoon of Bovaer a day helps cattle burp less, reducing their methane emissions by up to 45 percent.
Bovaer, made from nitrate and a bio-based alcohol, is increasingly popular with farmers around the world and is just one product in the DSM catalogue.
The company focuses on promoting animal and human welfare, and London-listed Impax Environmental Markets owns a large part of it.
Impax invests in small and medium-sized businesses with an environmental touch, from hazardous waste treatment in the United States to reusable pallets in Australia.
There are also several UK companies in the group, including packaging group Mondi and vapor specialist Spirax Sarco.
impax stock They cost £3.96 and should increase in value this year and in the future. Manager Jon Forster has been in business since 2002 and looks for companies that are not only trying to do good but also need to generate long-term returns.
Clean Harbors is a good example. Headquartered in Massachusetts, the New York-listed company removes hazardous waste and disposes of it safely.
On the rise: Impax shares are £3.96 and should rise in value this year and beyond
Its customers include the US military, as well as chemical, energy and manufacturing companies throughout North America. Clean Harbors is growing rapidly as companies outsource their waste disposal, and shares are up 55 percent in the past 12 months alone.
Many environmentally focused companies invest in unlisted companies or projects that require significant financing. That puts them at a disadvantage when money is tight and interest rates are high.
Other green funds invest in large-scale companies or infrastructure, where competition can be fierce.
Impax is different. The group looks for smaller companies that are listed on local stock markets but are less well-known than their larger peers. The approach offers two key benefits to investors.
They gain access to companies that would otherwise be difficult to find and these companies are more likely to generate faster growth over time.
Forster and his team spend months assessing whether companies meet Impax requirements. The research is extensive and potential investments go through several hurdles before approval. The network is also widespread.
Dabur India specializes in products with natural Ayurvedic ingredients, from toothpaste and shampoo to shakes and supplements.
Ayurveda, a traditional form of Indian medicine, is credited with a variety of healthcare benefits and has helped make Dabur one of the most trusted companies in India.
It’s also important to note that Dabur stock has risen steadily over the past decade and there is much more growth on the way.
In Japan, Impax recently bought a stake in bicycle parts specialist Shimano. In China, energy storage company Contemporary Amperex Tech has joined the portfolio and, closer to home, Milan-based Prysmian is helping to make the Italian energy grid more efficient.
Economic uncertainty has created challenges for many companies, driving down valuations and impacting Forster’s performance.
But after strong returns for several years, recent times have been tough and the stock has lost around a third of its value since 2021.
However, the prospects are bright. Impax has weathered several periods of turmoil and emerged stronger and better prepared for the future. This time there are even more reasons for optimism.
As climate change rises to the top of the global agenda, companies with strong green credentials are increasingly likely to benefit, gaining support from governments, investors and consumers.
Some market watchers are concerned that a victory by Donald Trump in this year’s US election could hurt Impax, but the stock saw steady growth during his last term in the White House.
And Forster is taking advantage of current conditions to score bargains around the world.’
MIDAS VERDICT: Impax Environmental Markets has had a tough few years but, at £3.96, the shares are a bargain. The group combines green credentials with an uncompromising business sense. Buy and hold.
