Encouraging to see more ESG initiatives from AIM companies
We have been keeping a close eye on the reaction of AIM companies to the increasing ESG demands of customers and investors.
This week brought news of initiatives from two AIM companies which highlight the growing focus on ESG from the AIM community.
Science in Sport (LON: SIS), the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, announced its first major launch of an environment-friendly pack.
Science in Sport has invested in packaging technology and plan to convert the bulk of its protein powder range into recyclable pouch packaging, this being a first for the sports nutrition industry globally.
The PhD Nutrition pouch range will move to recyclable material, with a full range change completed in early 2021. In the last 12 months, PhD Nutrition has filled 700,000 pouches which have ultimately gone to landfill.
We commend the initiative of this small AIM company but also find it somewhat worrying that PhD will be the first sports nutrition brand in the world with packaging which can be recycled. Furthermore, this approach will only be rolled out to the Science in Sport brand later in 2021.
The new pouch is the first step in the Company’s strategy to minimise waste and the negative impact on the environment. Initiatives to support the recycling of gel and bar packaging are expected to commence in 2021.
We have never been tempted to invest in Science in Sport, which has been unable to make a profit for many years, and the shares continue to languish 45% below the June 2013 AIM listing price. However, it’s a credit that a small struggling AIM company has taken the initiative on this matter, although not before time given all the discarded SiS pouches one comes across!
Stephen Moon, Science in Sport’s Chief Executive Officer, commented:
“We take our ESG strategy very seriously and are in the process of introducing wide-ranging measures aimed at reducing the environmental impact our manufacturing footprint, brands and products have on our planet. The introduction of a recyclable pouch is the first of several initiatives over the short and medium-term.”
We hope they are rewarded for this initiative, as shareholders could also do with some encouragement.
Inspecs Group (LON:SPEC), the designer, manufacturer and distributor of eyewear frames, a relatively new addition to AIM in February this year announced news of a new ‘house brand’, made from fully sustainable and recycled materials.
The new brand is due to be launched in 2021 and is in line with its continued ESG improvement policy. This is another great initiative which we hope will go down well with customers, however, it would be helpful if Inspecs could elaborate on the ESG improvement policy referred somewhere on its website.
ESG investing is an undeniable and perpetual growth story which is not slowing down and is expected to be a significant part of financial advice in the future.
How does AIM perform against ESG principles and what opportunities in ESG does AIM have to offer?