Bank Sarasin critical ethanol in terms of sustainable development.
Renowned for its analysis on sustainable development of economic sectors, Bank Sarasin (BSAN.S) focuses on biofuels, including ethanol, a form of alcohol produced by fermentation of natural sugars. The theme is hot: Switzerland opened Thursday in Winterthur, its first petrol station equipped with bioethanol (liter price 20% lower than unleaded gasoline). And IPOs of the main producers are increasing in the United States.
Fertilizers and pesticides
From the perspective of sustainable development, the sector reveals clear strengths, but Matthias Fawer at length addresses weaknesses. It sports a great restraint in respect of the prefix bio eventually amaze. The bank highlights the overexploitation of crops through increased use of fertilizers and pesticides and the risk of deforestation. It criticizes the competition of arable land with the food industry: 50% rapeseed already used for biodiesel production. Prices of some food products are already driven up, including vegetable oils. Social and environmental conditions, described as "critical" in developing countries, reinforcing fears of the bank, as well as the use of GMOs (genetically modified organisms). Indeed experts talk of the development of "energy crops".