Investing in Our Future on Earth Day and Beyond
As our cherished home, protecting and preserving Planet Earth should be our utmost priority. Unfortunately, years of rampant pollution, deforestation, overconsumption and other harmful practices have contributed to the acceleration and exacerbation of climate change. Consequently, we are witnesses and victims to a growing number of severe weather events and natural disasters globally.
In honor of Earth Day, ProcureAM acknowledges the urgent need for action to mitigate the risks of climate change, highlighting the pivotal role the private sector plays in ensuring safety and preparedness in the face of natural disasters.
According to a recent report released by the U.N’s Intergovernmental Panel on Climate Change (IPCC), nearly half of the global population lives in regions that are ‘highly vulnerable’ to climate change. Additionally, highly vulnerable regions experienced 15 times more deaths caused by floods, droughts and storms.1
Several major and unexpected catastrophic events devastated communities around the world in 2023 alone. Parts of Turkey and Syria were destroyed by a 7.8 magnitude earthquake in February,2 which resulted in thousands of deaths and left behind a massive economic toll; most of the infrastructure in affected areas were severely damaged or wiped out completely.
Last month, California endured a series of treacherous storms and floods that left residents trapped amidst overflowing rivers and mudslides. The adverse effects have extended to the state’s agricultural sector. Some farms are fully submerged by floodwaters and others are too waterlogged to support cultivation.3 This could have far-reaching implications throughout the United States. If farmers are unable to sow their intended crops, the harvest and distribution of food could suffer, leading to food insecurity issues.
These are not the only climate-related disasters that have occurred this year and with hurricane season approaching, we could see more. What can we do to prevent natural disasters from ravaging our communities? There are many private companies dedicated solely to risk reduction and recovery efforts that are called into action during natural disaster emergencies. When creating the Procure Disaster Recovery Strategy ETF (FIXT), we sought out global companies engaged in those exact practices, whether they build infrastructure strong enough to withhold potential earthquakes or provide emergency response following disasters.
Officials in Turkey and Syria will likely explore different construction strategies that rely less on concrete as a building material. Fugro,* a Dutch firm that analyzes the Earth’s stability for building, may be in demand for this reason. In fact, Fugro was previously hired to conduct ground analysis for a nuclear reactor construction project in Turkey.
With the impact from the California floods, issues with the power grid may have been mitigated by generator manufacturers like Generac,* Cummins* and Xylem*. Further, the unstable farmland could potentially be contaminated from debris and other toxic materials. To help address the contamination, companies involved in water management, sanitation and flood control could step in such as Xylem,* John Wood Group,* Sulzer,* Stantec,* Clean Harbors* and Tetra Tech.*
As investors, we can play our part by funding, supporting and acknowledging the companies working collectively towards natural disaster preparedness and resilience to protect our Earth and future.
1CNBC, March 23, 2023, World’s top climate scientists issue ‘survival guide for humanity,’ call for major course correction.
2The Wall Street Journal, February 9, 2023, Why the Turkey-Syria earthquake was so destructive and deadly.
3Fox40.com, March 31, 2023, California’s farmers struggle with deepening flood waters.
*As of April 14th, 2023, Clean Harbors CLHJ) was a 2.05% holding, Cummins (CMI) was 1.79% holding, Fugro (FUR NA) was a 2.23% holding, Generac (GNRC) was a 1.72% holding, John Wood Group (WG/ LN) was a 1.92% holding, Stantec (SNT CN) was a 2.01% holding, Sulzer (SUN SW) was a 1.96% holding, Tetra Tech (TTEK) was a 2.10% holding, and Xylem (XYL) was a 2.05% holding in the Procure Disaster Recovery Strategy ETF (NASDAQ: FIXT).
Please consider the Funds investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before you invest.
Investing involves risk. Principal loss is possible. The Fund is also subject to the following risks: Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Securities of small- and mid-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices and significantly lower trading volumes than securities issued by large, more established companies. The Fund is not actively managed so it would not take defensive positions in declining markets unless such positions are reflected in the underlying index. Please refer to the summary prospectus for a more detailed explanation of the Funds’ principal risks. It is not possible to invest in an index.
Natural Disaster/Epidemic Risk – Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and may be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Fund’s investments.
Foreign Investment Risks – Foreign securities are typically more volatile, harder to price, and less liquid than U.S. securities.
American Depositary Receipt Risk (ADR)-ADRs involve risks like those associated with investments in foreign securities, including changes in political or economic conditions of other countries and changes in the exchange rates of foreign currencies. ADRs listed on U.S. exchanges are issued by banks or trust companies and entitle the holder to all dividends and capital gains paid out on the underlying foreign shares. Investing in ADRs as a substitute for an investment directly in the foreign company shares, exposes the Fund to the risk that the ADRs may not provide a return that corresponds precisely with that of the foreign company’s shares.
The Procure Disaster Recovery Strategy ETF is neither associated with, nor endorsed by, the Federal Emergency Management Agency.
The Procure Disaster Recovery Strategy ETF is distributed by Quasar Distributors LLC.