Thematic investinginvolves targeting investments that align with specific ESG-related themes, such as clean energy, climate resilience, or sustainable infrastructure. When investors allocate capital towardwaste and water infrastructure, they are aligning with environmental themes likeresource efficiencyandclimate adaptation.

“Investment in infrastructure projects such as water and waste… with high environmental impact aligns with thematic strategies, particularly under the environmental factor category of resource use and pollution control.”

Impact investing goes further by requiringintentional and measurable social or environmental outcomes, which isn't a requirement in this case. Best-in-class investing focuses on selecting top ESG performers within each industry, which is not the theme here.