From Headwinds to Tailwinds: Fondita Sustainable World delivering strong returns

Climate and sustainability-focused investing faced a challenging period between the years 2022 and 2024. Political headwinds, regulatory uncertainty and shifting investor sentiment weighed on the theme. That period now looks increasingly like a pause rather than a reversal, and 2026 has been particularly rewarding for investors who stayed the course.

Fondita Sustainable World has returned just below 22% in 2026 (As of August 12th), outperforming its unofficial benchmark, the MSCI World Climate Paris Aligned Index, by almost 10 percentage points, and the broad MSCI World Index by approximately 6 percentage points. Over the past 12 and 18 months, the fund has outperformed both its own benchmark and the MSCI World Index. For 2026 the fund ranks in the top 15 % of its Morningstar category, a universe of more than 230 globally focused sustainable funds. 

It is worth noting that Fondita Sustainable World is classified as an Article 9 fund under the EU SFDR regulation. This is the highest sustainability classification, requiring that investments have a measurable positive impact on the environment or society. The fund’s strong returns have been generated without compromising on those standards. 

The results reflect something worth pausing on, investing in companies providing climate and environmentally smart solutions has proven to be a compelling investment proposition. Not despite the current environment, but in many ways because of it. The most powerful tailwind has been the surge in global energy demand. The wave of investment in AI processing capacity and data centers is energy-hungry, accelerating the need for new production capacity with renewable energy at the centre. At the same time, the geopolitical environment has fundamentally shifted the conversation around energy independence, channeling capital toward renewable infrastructure at an accelerating pace. 

Beyond energy, we see equally compelling structural drivers elsewhere in the portfolio. Clean Water Solutions addresses one of the most fundamental challenges of our time, the growing global demand for access to clean and efficiently managed water resources. Waste Management & Recycling benefits from tightening regulation and the accelerating shift toward circular economy models, both of which continue to strengthen the commercial case for companies in this space. 

All sub-themes delivered positive returns in 2026, with Sustainable Technology and Renewable Energy as the strongest contributors. Additional momentum for the theme would be supported by a clearer and more consistent regulatory and political commitment to green investment frameworks, both within Europe and globally. A more predictable policy environment would further reinforce what are already strong and self-sustaining economic drivers across the fund’s sub-themes. 

We continue to see encouraging signs of growing demand for climate- and environmentally smart investments, driven by rapidly growing energy demand and the global push for energy independence. The structural case for renewable energy investments remains as strong as ever. 

Marcus Björkstén
Portfolio Manager for Fondita Sustainable World