Keep in mind that our commentary on the fund, as well as its past performance, is not a guarantee of what will happen in the future. The value of investments, unlike cash, will go up and down over time. Depending on the value of your investments when you sell, you may not get back as much as you invested.

We’ve tried to explain any technical terms where possible and included expandable segments for more information. You may also want to view our A–Z of Impact Investing (PDF download).

Investment approach

The Triodos Global Equities Impact Fund aims to generate positive impact and competitive financial returns from a concentrated portfolio of large, listed companies pioneering the transition to a sustainable society. We select companies for their contribution to our sustainable transition themes. In an integrated financial and sustainability analysis we identify the impact of material environmental, social and governance (ESG) issues on a company's ability to create value.

Market outlook

Adam Robbins, senior investor relationship manager, Triodos Investment Management
Adam Robbins, senior investor relationship manager, Triodos Investment Management

In the final quarter of the year, stock markets partly recovered from the sharp falls earlier in 2022. This recovery was mostly related to investors speculating that central banks would soon slow the pace of the interest rate hikes due to inflation starting to fall.

We expect US inflation to fall faster than UK and eurozone inflation, because in the first half of 2023, European inflation will still be affected by the Russian gas supply cuts. US inflation will in the meantime fully benefit from easing global supply chain pressures and slowing global demand. We expect eurozone and UK inflation to catch up in the second half of the year, but we still expect US, UK and eurozone inflation to be materially above the 2% central bank targets by the end of 2023, with the US at 3.4%, eurozone at 3.8% and the UK at 5.2%.

We project global economic activity to expand by a meagre 2.5% in 2023. This is the slowest annual growth rate since 1993, besides the 2008/09 Global Financial Crisis and the COVID pandemic. This sees a continuation of the recessions that have already started in the eurozone and UK, however, we believe a global recession will be narrowly avoided, due to improving growth in the US and Japan.

Despite the slowdown in economic activity, corporate earnings have held up relatively well until now. We expect continued modest growth in public spending and use of resources and services. However, on the flip side, we believe company earnings will come under pressure so overall our stance is neutral. That is, we do not believe stock markets overall will make significant progress from current levels. However, we aim to invest in quality impactful companies, and these could generate positive returns in the current environment.

How the fund has performed

The Triodos Global Equities Impact Fund achieved a positive return of 3.2% in Q4, outperforming its benchmark which increased by 0.9%. Part of this was driven by currency movements, the Euro strengthened against the US Dollar (USD) and many of our investments are located in or influenced by price changes in Europe. We also benefitted from the fact we don’t invest in many energy and financial companies since these performed relatively poorly.

The fund’s investments in technology companies were a key driver of positive returns. However, investments in industrial businesses underperformed, partly over concerns their performance will be impacted by the slowing economic environment.  



As of 31/12/22


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Please remember that past performance isn't a guide to future returns

Stocks in focus

Contributors to performance


As a pure play in the wind energy industry, Vestas contributes to the increase of renewable power production capacity. The company therefore directly helps in the transition towards a net zero emission world, using clean energy and diverting away from fossil fuels.

The company announced several new orders during the quarter which boosts potential future profit growth. Also, new Treasury guidelines on tax credits can be positive for US businesses, where the Inflation Reduction Act will spur the green transition with over $350 billion of green subsidies.


EssilorLuxottica is a French eyewear company, that designs, manufactures, and distributes eye lenses, frames and sunglasses. The company aims to eliminate poor vision in a generation, by finding ways to reach the 2.7 billion people that suffer from uncorrected poor vision and the 6.2 billion that do not protect their eyes from harmful rays.

The company recently posted a trading update that reported good sales numbers, with organic growth of over 9% in the first nine months of 2022, which saw the share price increase.

Detractors from performance

Advanced Drainage Systems

Advanced Drainage Systems is the second largest plastics recycler and leading manufacturer of thermoplastic corrugated pipe in the US. The company’s products are designed to manage the entire lifecycle of a raindrop, from capturing and conveying stormwater runoff to storing and treating the water.

After a strong performance in the third quarter of 2022, it saw the shares fall back in the last three months of the year. Investors are worried about short-term cyclical headwind on the business. The company did revise downward the full year sales forecast, however maintained its profit guidance. We retain our confidence in the long-term prospects for the business.

Edwards Lifescience

Edwards Lifescience offers solutions for patients that suffer from cardiovascular diseases. They provide minimally invasive procedures such as the replacement of the aortic heart valve by keyhole surgery rather than invasive surgery, which results in lower mortality rates, stroke rates, and quicker recovery times.

As the company is reliant on hospital services, shortages in this area have affected the business and the shares fell after the company lowered full year guidance.