Jupiter has published an in-depth analysis looking at the past 20 years of green investing and investigating what has caused the recent explosion in growth.

The last few years have seen the environment shoot up the agenda for investors. However, the roots of interest in the investment opportunities presented by the environment date back at least 20 years, when the UK's first 'green' fund, the Jupiter Ecology Fund, was launched in 1988.

It was around this time that environmental issues started to receive more attention following the discovery of the hole in the ozone layer.  There were two significant events in 1987, the first was the publication of the Brundtland Commission's report 'Our Common Future', and the second was the adoption of the Montreal Protocol.  This was followed by a number of reports and investigations around the world culminating in 1997 when the Kyoto Protocol made it mandatory for industrial countries to cut their carbon dioxide emissions. Since that time, environmental issues have been permanently on the agenda particularly with events such as the high profile Stern Review on The Economics of Climate Change in 2007 and Al Gore's documentary An Inconvenient Truth in 2006.

Emma Howard Boyd, head of SRI at Jupiter, says: "All of these developments translate into three key drivers for growth in green investing: governments are taking more action, consumers are demanding sustainable products and businesses are looking to exploit this opportunity."

One result of the changes outlined above is that more and more businesses are 'greening' their existing products or entering new markets to provide solutions to the challenges we face. They range from the smallest start-up companies to some of the world's biggest enterprises.

Emma Howard Boyd continues: "The level of activity has provided a huge boost to green investors because it means there are many more companies to choose from. Even ten years ago, the investment universe numbered only about 250, whereas there are now well over 1,000 pure-play 'green' companies and the number is growing all the time. There is an increasing diversity and maturity to the sector as well.

"However, while shares of these businesses can, like most others, be volatile, the long term drivers for growth in this area are clear. We are arguably in a virtuous circle, where the three pillars of growth - government, companies and consumers - are all positively engaged."

A full copy of Jupiter's Guide to Green Investing, which includes the high points of the past 20 years, is attached and can also be accessed via the Jupiter website link http://www.jupiteronline.co.uk/ApplicationFiles/GetFile.pdf?docId=856

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NOTE

Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Services Authority and their registered address is 1 Grosvenor Place London SW1X 7JJ. The group is collectively known as "Jupiter". The above commentary represents the views of the Fund Manager at the time of preparation and may be subject to change. They are not necessarily those of Jupiter and should not be interpreted as investment advice. Past Performance should not be seen as a guide to future returns, the value of an investment and the income from it can fall as well as rise and may be affected by exchange rate variations. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.