Credit Suisse has named a slew of stocks that it says will be "direct beneficiaries" as a young and socially conscious generation of consumers increasingly take a more sustainable approach to their lifestyle choices. "Younger consumers matter most when it comes to future spending behavior. Therefore, if a reduction in emissions is to be achieved via a change in consumer lifestyles or spending behavior, one should know what today's younger consumer is likely going to do in the future," Credit Suisse analysts, led by Eugene Klerk, said on Feb. 1 in a research note. The bank examined how consumers impact sustainability and the lifestyle changes required to live sustainably. The bank also identified food, fashion, transport and travel, and housing as the key end-markets that could see the greatest impact as a result. Within the food sector, the bank said consumers are willing to pay a premium for sustainable food, with a strong growth outlook for alternative (plant-based) protein, Klerk said. Similarly, the bank found that consumers are also willing to accept a premium for sustainable fashion, posing a challenge to the traditional fashion industry. In the transport sector, Credit Suisse said consumers are embracing low emission solutions while energy efficiency technologies are set for strong growth as consumers look to improve building energy efficiency. Direct beneficiaries Against this backdrop, the bank's analysts identified several stocks which they say are "direct beneficiaries" of sustainable consumption. These companies sell products or offer services that will be bought or used directly by consumers as they become more sustainable, Klerk added. "We recognize that our analysis is unlikely to result in changes to the immediate outlook for exposed sectors and companies. Rather, we have selected companies that we believe might benefit longer term from a move by consumers to a more sustainable lifestyle," Klerk said. These companies include eBay and Norwegian classifieds firm Adevinta within the bank's circular economy theme. Irish building materials company Kingspan Group , Chinese solar maker Xinyi Solar and lighting fixtures manufacturer Acuity Brands are the bank's top picks within the sustainable buildings space. German meal kit delivery company HelloFresh and Australian health supplements firm Blackmores are the bank's top picks within the sustainable food theme, while ski resort operator Vail Resorts and New York-based travel magazine Travel + Leisure round up the bank's picks within the sustainable travel sector.
Credit Suisse has named a slew of stocks that it says will be "direct beneficiaries" as a young and socially conscious generation of consumers increasingly take a more sustainable approach to their lifestyle choices.