Emerald Product Portfolios have Companies with "Greener Visions"

Aug 27, 2008

Since our founding in 1991, Emerald’s philosophy has been rooted in the belief that fundamental, bottom-up research is the key to gaining exceptional understanding of the companies we choose to include in our investment portfolios. Conducting over 2,000 on site, face to face visits a year, Emerald utilizes a proprietary 10-step research process that seeks explanations far beyond board room rhetoric. In addition, this intense process reveals what other commitments aside from increasing revenues and gaining competitive advantages, companies have made that further contribute to community business development or may sustain national and local initiatives.

With technology, energy, manufacturing, consumer goods, materials, and health sciences traditionally being key sectors of Emerald coverage for many years, Emerald analysts and management have been mindful of the growing need for conservation awareness.  In reviewing our Emerald portfolios we discovered companies that have established initiatives to encourage improving the environment whether it is through more environmentally sound product design, conservation of energy and materials; pollution reduction; recycling and reuse of materials; reduced use of toxic chemicals; or other practices that clearly illustrate their commitment to be more “green” minded. There are companies educating their workforce on conservation awareness and have made facility modifications to be more energy efficient.  Many of the companies held in Emerald portfolios are getting educated and smarter about buying, using, and developing products that are better for the environment. At Emerald we refer to it as “greening up”.

We have found companies that have initiated changes in their manufacturing process to be more energy efficient including reducing waste in both operating and stand-by modes. Companies that have developed technologies that have resulted in a 50% reduction in chemical usage; companies who see waste as a commodity and are developing ways to convert it to energy funneling it back into the production process or producing heat for their building. There are developments in optical, thermography and imaging applications; semiconductor processing; the manufacturing of industrial motors, drives, generators and transmission products; and the collection, transfer and disposal of waste services that are generating an abundance of recycling efforts worldwide. The initiatives that have been uncovered reach across the globe and include rain forest preservation.