Australia Resource Efficiency™
As emerging market populations develop and incomes continue to grow, consumption will follow, creating a long term demand driver for improved infrastructure and commodities. As resource prices adjust to another 1 billion middle income consumers , a selective pressure that favors more resource efficient companies, in LGA’s view, is likely to emerge.
The Australia Resource Efficiency™ strategy is designed to provide investors with a transparent exposure to companies well-situated to benefit from the forthcoming growth in infrastructure spending in South and East Asia. Whilst India and China appear to have attractive long term secular growth opportunities, their transparency with regards to ESG considerations and corporate accounting under Generally Accepted Accounting Principles (GAAP) is notably lacking.
Australia, in contrast, is a AAA country with a market transparency equal to or better than that of the USA. Australia produces a high proportion of the physical resources required by fast-growing emerging countries such as India and China, including a wide variety of metals that are critical to infrastructure such as roads, buildings, and bridges.
LGA has developed a process for identifying the most resource- efficient producers of resources in Australia, whether they are domiciled in Australia or elsewhere.
For access to a background paper on Resource Efficiency and Australia, click the link below: