We have assembled an unparalleled combination of experience, insight, and skill. Harnessing environmental data and analysis, we strive to reliably achieve superior returns for our investors.

Terra Alpha Investments is a public equity manager founded in 2014 by highly experienced investors who share the conviction that our rapidly evolving world requires a change in investment thinking. Our rigorous and proprietary Environmental Productivity (EP) analysis values our planet’s natural resources and sits at the center of our successful investment process. Our innovative process of quantitative and qualitative analysis helps us identify companies with the optimal combination of Enduring Business Models (EBM) and superior EP. We believe this process is the primary driver of our ability to deliver superior long-term investment returns for our investors.

Environmental Productivity

Terra Alpha uses its proprietary Environmental Productivity (EP) analysis framework to identify leading companies across sectors and around the world. EP is the efficiency with which companies use and impact natural resources (clean air and freshwater, healthy soils, forests and oceans, and sustainable raw materials). For businesses operating in the 21st century, managing the evolving environmental challenges and constraints is imperative.


EP

In a resource-constrained world, Environmental Productivity analysis is an essential investment tool.

Carbon

Businesses and investors need to consider their use of greenhouse gas emissions in decision making.

Water

There is a strong business and investment case for taking into account sustainable water management.

Waste

Those who optimize resource efficiency and recover value from waste streams will be best positioned to outperform.

Soil

Healthy soil for growing food, fiber, and feeds is a shrinking global resource facing growing demands on its productivity.

Enduring Business Model

Terra Alpha’s Enduring Business Model (EBM) Scoring process is designed to measure a company’s ability to deliver long-term (5+ years) positive returns in our rapidly changing world. These changes will accelerate the creative-destructive nature of our capital markets; increasing risk and creating new opportunities for investors.

Our senior investment team and the sector analysts individually assess each company across a range of factors. In the end, we build a long-term outlook for each business which we believe is positioned to thrive.


Business Model

Ability of the company to prosper based on current business and strategy.

Governance & Management

Core to the ability of a company to navigate in our changing world.

Financials

Essential metrics to identify risks and evaluate future returns.

Operations

Ability of the company to deliver on market opportunities and minimize risks.

 

We incorporate key thematics that are built into all of our long-term analysis:

  • Decarbonization across the economy
  • Electrification of everything
  • Urbanization of society and greater resiliency in cities
  • Technological innovation – the fourth industrial revolution
  • Evolving food and agricultural systems to provide healthy diets for 9.5 billion people
  • Demographics; i.e. the aging population and impacts at country levels
  • Impacts of climate change on businesses, especially transportation, tourism, and agriculture

Engagement

We use education, engagement, and collaboration to improve financial, environmental, and social outcomes.  Our efforts seek to:

  • Expand the use of Environmental Productivity analysis for better business and investment decision-making.
  • Increase transparency in corporate disclosure with a priority on environmental information and data.
  • Improve corporate governance practices to encourage longer-term thinking and more sustainable business strategies.

Engage with companies to improve EP practices and disclosure

Engage with peer investor firms to improve investment practices

Engage with regulators to improve policies

Collaborate with peer investors to encourage improved corporate reporting

Partner with think-tanks and NGOs to build knowledge