Climate change is highly interconnected to other environmental and social issues, from the more obvious, such as the impact of mass coral bleaching on marine ecosystems, to the more granular, such as the strain on India’s wheat production caused by its food systems. It is a complex challenge that affects us all and is becoming increasingly urgent, as global temperatures briefly crossed 2.0 degrees celsius of warming since pre-industrial times for the first time last year.

FSSA Investment Managers share a case study on Midea, the largest appliance company in China and a core holding in their portfolios. In 2022 the group ranked first in multiple home appliance categories, one of which was residential air conditioners with around 34% market share. While air conditioners are a necessity in growing areas of the world, the irony is that cooling products are actually warming the planet. They have continued to develop and improve the energy efficiency of its products. In 2022 the company produced the world’s first 'Energy Efficiency Grade 1' air conditioner.

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