Investment Themes

The SBP Formula will guide the investment focus on the following sectors, believed to be key in the transition process to post-industrialisation, providing the broad boundaries for the investment themes:

• Sustainable energy generation:
  Innovative capabilities to generate energy efficiently or from renewable sources that do not pollute or contribute significantly to climate change.
  
• Industrial tools, technologies, and software:
  Facilitating transfer of industrial tools, technologies and software that promote sustainable industrialisation.
  
• Water and waste remediation:
  Technologies that facilitate the removal or reduction of existing pollution.
  
• Information services, process improvement & corporate governance:
  Process improvement through information & communication technologies, internet services, and management processes that help to converge towards global standards.
  

SBP is confident that its formula has captured vital elements that on the macro level will help to shift China’s trajectory of economic development, protect long-term growth, reduce its levels of environmental degradation and accelerate the rate at which it achieves sustainable industrialisation – all while participating in and benefiting from the country’s phenomenal economic growth.

SBP will further benefit from the development in environmental industries; one of the fastest growing sectors of industrialisation worldwide and a very evident China specific need. Future growth in the sector will be based on the continuing need for solution that are sustainable, including clean sources of water, renewable energy generation and processes to improve sustainability, often based upon – at least in the short run – conventional technologies.

China has identified its needs in its environmental industry sector, its services sector and its processes sectors and is now aggressively developing these industry sectors with the intent of not only meeting domestic needs but also supplying international markets. It has put its money behind the rhetoric ($175 billion in the current five-year plan) and is investing in research and solutions. The sustainable industrialisation practices emerging in China today will no doubt be exported to other areas of Asia and the developing world as industrialisation takes root in those countries.

SBP will both contribute to and profit from this development. The logic of this value creation is depicted below.