THINK BIG!

Sebastián Plubins
October 19, 2018

Climate Change is one of the biggest threats facing humanity today and dealing with this issue must be our number one priority. In less than one hundred years, the world’s population has grown from 1,5 billion to 7,5 billion people and it’s expected to reach nearly 10 billion in 2050.  Nowadays, we are living longer, consuming more and, consequently, polluting our environment more than ever. Our ecosystem is under an enormous pressure and in response, its unleashing global warming and extreme weather events that could potentially challenge our existence.

The Paris Agreement, led by the United Nations Framework Convention on Climate Change (UNFCCC), was signed in 2015 by 194 countries including US, China and the EU.  Its objective is to deal with greenhouse gas emissions, mitigation, adaptation and finance, starting in 2020. The long-term goal is to keep the increase in global average temperature well below 2°C above pre-industrial levels, and to limit the increase to 1.5°C. The ultimate goal is to achieve net-zero emission in 2050. This would reduce the risks and effects of climate change, but the agreement is in danger of falling apart if the United States intention to withdraw from it becomes effective in November 2020.

And while we wait, we are losing precious time.  

According to scientists convened by the United Nations the world must invest $2.4 trillion dollars in clean energy every year through 2035 and cut the use of coal-fired power to almost nothing by 2050 to avoid catastrophic damage from climate change.

"The world must invest $2.4 trillion in clean energy every year through 2035 ."

We are already late, so we have to act now because there are many more challenges we have to deal with.

As I mentioned earlier, humans are living longer and the desire to maintain living standards after retirement is creating huge demographic pressure on pensions plans across the globe. The aging population is a time bomb for governments everywhere.

People need to save more money, stay healthier and look for better investment alternatives. Unfortunately, the current financial system is not easy to deal with. Financial advisors receive commissions every time a trade is made, hence the conflict of interest between bankers and retail investors. The truth is that a low rotation portfolio and long term investment returns outperform short term trading.  

On top of that, Carbon & Oil company stocks are included in every retirement plan scheme and index fund across the world, making it extremely difficult to get rid of people's addiction to fossil fuels.  

Moreover, we are entering one of the most definitive moments of our era where new and exciting technologies are shaping everything and probably Artificial Intelligence and Biotechnology are the most relevant breakthroughs of the 21st century.

Cloud Computing is bringing cheap computer power to the masses, and the rise of Artificial Intelligence could be transformative for human-kind, creating new opportunities and jobs, but it may also leave many people behind.  

The same -potentially- could happen with Gene-Editing, a branch of Biotechnology. Nowadays computer power and technological innovations, like CRISPR-Cas9, allows scientific researches to dig very deep into our DNA structure figuring out new solutions to existing genetics problems. And this is just the beginning, so we must be careful.

It is true that scientific and technological breakthroughs have helped push humanity forward, but we should never underestimate the potential they have to cause us harm. Take nuclear technology, for example: In the right hands, a nuclear-power station can generate electricity for an entire city, but in the wrong hands, a nuclear bomb could destroy it.

What about Ethics?  What about our Environment?  What about our future?  

How can we help?  

Kaccelerator is a next-generation thematic investment fund focused on disruptive innovations that are changing the world for the better and that have long-term growth potential. We believe in the transformative power of allocating capital into mission-driven businesses that can deliver positive change and alpha.

Kaccelerator was founded by Sebastián Plubins, an environmental activist and social business advocate that has decided to build an impact investment company following his values and principles without compromising growth and returns. He believes the sustainability revolution is history's biggest investment opportunity.

Our philosophy follows the Environmental, Social and Governance (ESG) investment strategy. We value transparency, ethics and integrity in our investments. We don't invest in assets or companies that are heavily weighted in oil, carbon, tobacco and weapons.

"He believes the sustainability revolution is history's biggest investment opportunity."

Although we follow a value investment philosophy, we understand that the market is like a pendulum that goes from euphoria to depression, in cycles. Therefore, it’s important to be patient -never panic- and have a cold and independent mindset to find true value.  

In a nutshell, we believe humanity is transitioning from the industrial revolution’s economic order towards a newer, greener and more transparent economic and political model.  We believe in sustainable business models for impact investing and we seek companies with high potential for sustainable growth that from time to time are undervalued by the market.    

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Kaccelerator is a next-generation thematic investment fund focused on disruptive innovations that are changing the world for the better and that have long-term growth potential. We believe in the transformative power of allocating capital into mission-driven businesses that can deliver positive change and alpha.

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