According to scientists, methane accounts for around 30 per cent of global warming and is up to 80 times more harmful than carbon dioxide.
More than half of these toxic emissions come from agriculture. Cattle alone produce about a third of global methane emissions, largely from burping.
Dutch health and nutrition group DSM-Firmenich has created a digestion aid for these grass-guzzling ruminants.
Creating a stink: According to scientists, methane accounts for around 30% of global warming
Just a quarter of a teaspoon of Bovaer a day helps cattle to burp less, cutting their methane emissions by up to 45 per cent.
Made from nitrate and a bio-based alcohol Bovaer is increasingly popular with farmers worldwide and is just one product in the DSM stable.
The company focuses on promoting animal and human welfare, and London-listed Impax Environmental Markets owns a chunky slice of it.
Impax invests in small and mid-sized businesses with an environmental twist, from hazardous waste treatment in America to reusable pallets in Australia.
There are several UK firms in the mix as well, including packaging group Mondi and steam specialist Spirax Sarco.
Impax shares are £3.96 and should increase in value this year and beyond. Manager Jon Forster has been with the business since 2002 and seeks out companies that are not only trying to do good but should also deliver long-term returns.
Clean Harbors is a case in point. Headquartered in Massachusetts, the New York-listed business removes hazardous waste and disposes of it safely and securely.
On the up: Impax shares are £3.96 and should increase in value this year and beyond
Customers include the US military as well as chemical, energy and manufacturing firms across North America. Clean Harbors is growing fast as businesses outsource their waste disposal and the shares are up 55 per cent over the past 12 months alone.
Many environmentally focused companies invest in unlisted businesses or projects that require significant funding. That puts them at a disadvantage when money is tight and interest rates are high.
Other green funds invest in large-scale firms or infrastructure, where competition can be fierce.
Impax is different. The group seeks out smaller companies that are listed on local stock markets but are less well-known than larger peers. The approach offers two key benefits to investors.
They gain access to businesses that would otherwise be hard to find and these firms are more likely to deliver faster growth over time.
Forster and his crew spend months assessing whether companies fit the Impax bill. Research is comprehensive and potential investments pass through several hoops before approval. The net is cast wide, too.
Dabur India specialises in products with natural, Ayurvedic ingredients, from toothpaste and shampoo to milkshakes and supplements.
A traditional form of Indian medicine, Ayurveda is credited with a range of healthcare benefits and has helped make Dabur one of India’s most trusted businesses.
Importantly too, Dabur shares have increased consistently over the past decade and plenty more growth is in the pipeline.
In Japan, Impax recently bought a stake in bicycle parts specialist Shimano. In China, energy storage firm Contemporary Amperex Tech has joined the portfolio and, closer to home, Milan-based Prysmian is helping to make the Italian energy grid more efficient.
Economic uncertainty has created challenges for many companies, driving valuations lower and denting Forster’s performance.
But after strong returns for several years, recent times have been tough and shares have lost around a third of their value since 2021.
Prospects are bright, however. Impax has weathered several periods of turmoil and emerged stronger and better prepared for the future. This time, there are even more grounds for optimism.
As climate change rises up the worldwide agenda, companies with robust green credentials are increasingly likely to benefit, gaining support from governments, investors and consumers.
Some market watchers worry a Donald Trump victory in this year’s US elections could hit Impax but the stock delivered consistent growth during his last White House stint.
And Forster is using current conditions to pick up bargains the world over.’
MIDAS VERDICT: Impax Environmental Markets has been through a rough few years but, at £3.96, the shares are a bargain. The group combines green credentials with hard-nosed commercial nous. Buy and hold.