Thursday 30 July marked Earth Overshoot Day for 2026, the day on which we consume more ecological resources, or natural capital, than the earth can regenerate in a year. Darius McDermott, managing director of FundCalibre tells us about the meaning behind this day and highlights some themes and funds to impact the challenges.
Earth Overshoot Day is effectively the day our annual budget runs out and we go into deficit. It’s an indicator that highlights the consequences of using natural resources faster than they can be replenished.
If ecological overshoot continues over the long term, scientists expect significant impacts, including biodiversity loss, climate change and degraded ecosystems.
There are also economic consequences, such as rising food production costs, higher raw material prices for businesses, greater dependence on imports and increasing losses from floods, droughts and wildfires.
We use 1.7 Earths a year
After 211 days of 2026, humanity is estimated to have used the amount of renewable biological resources that Earth can regenerate in an entire year.
The remaining 154 days are considered to be in “ecological overshoot.” In other words, we are currently using resources at a rate that would require 1.7 Earths* to sustain indefinitely.
It should be noted that Earth Overshoot Day last year was actually six days earlier (July 24)*. However, this is not because we have made progress on the sustainability of our planet.
The organisation behind the calculation says the shift is mainly due to updated scientific data and accounting methods. In fact, actual changes in consumption and biocapacity would have pushed the date about two days earlier.
The date can move dramatically. For example, during the COVID-19 pandemic, Earth Overshoot Day shifted to 22 August 2020*, more than three weeks later than the previous year, because global economic activity and resource use temporarily declined.
It returned to earlier dates as activity recovered.
How fast are things moving?
In 1970, humanity was using almost exactly what the Earth could regenerate each year. However, since then the date has moved forward rapidly due to the likes of:
1. Population growth: The world’s population has grown from about 3.7 billion in 1970 to over 8 billion today. More people means greater demand for food, fresh water, housing, energy and raw materials.
2. Higher consumption per person: Average living standards have risen significantly in many parts of the world. People generally consume more than they did in 1970 – this includes more electricity, manufactured goods, meat and dairy, transport and larger homes and appliances.
3. Fossil fuel use: The largest component of the ecological footprint iscarbon emissions. Burning coal, oil, and natural gas releases carbon dioxide faster than forests and oceans can absorb it. As a result, the “carbon footprint” has become the biggest reason Earth Overshoot Day has moved earlier.
4. Deforestation and land use change: Forests are cleared for agriculture, livestock, mining, and urban development. This reduces biodiversity, the Earth’s ability to absorb carbon dioxide and overall biocapacity.
5. More intensive agriculture: Modern farming produces far more food than in 1970, helping feed a much larger population. However, in some places it has also led to soil degradation, overuse of fertilisers, freshwater depletion and habitat loss.
6. Overfishing and resource extraction: Many fish populations have been heavily exploited, and demand for timber, metals, and other natural resources has increased substantially alongside economic growth.
Some countries are worse than others when it comes to sustainability
Qatar hit its sustainability target on February 4 – due to high energy use per person, higher incomes, a large oil and gas industry and limited farmland and freshwater.
If everyone lived like the average person in Qatar, humanity would need 10 Earths to sustain that level of resource use**.
By contrast, Colombia (November 25) and Honduras (November 27) have the latest overshoot day as average consumption per person is much lower, carbon emissions are low and both countries retain significant natural resource ecosystems.
For example, Colombia contains part of the Amazon rainforest and has very high biodiversity**.
For clarity, the UK (May 14) and the US (March 14) are towards the higher end of the scale on a country-by-country basis**. Meaning if everyone lived like the average UK resident, we would need the equivalent of 2.6 Earths to sustain humanity.
Compared with if everyone lived like the average US resident, we would need 5.1 Earths*.
Slowing the trend
The Global Footprint Network identifies several areas that could help reduce humanity’s use of natural resources, including protecting biodiversity, decarbonising the energy sector, improving food production efficiency and reducing food waste.
These are all areas where responsible investment can play an important role, while continuing to seek long-term financial returns.
More than half of global GDP depends on healthy biodiversity and functioning ecosystems. The degradation of nature creates significant economic costs, with estimates placing the impact at more than $5 trillion annually***.
Increasing investment in areas such as precision agriculture, water management, sustainable forestry and clean energy will be critical to protecting biodiversity and strengthening long-term economic resilience.
However, decoupling economic growth from resource consumption remains a significant challenge. Schroders’ analysis shows a 96% correlation between GDP growth and ecological footprint****, highlighting the historic link between economic activity and resource use.
Data also shows that Earth Overshoot Day has only moved later during periods of economic contraction, such as the Covid-19 pandemic and the Global Financial Crisis.
A key part of the solution is the transition towards a circular economy, moving away from the traditional ‘take-make-dispose’ model.
The 2025 Circularity Gap Report estimates that the global economy is currently only 6.9% circular, down from 7.2% in the previous report.
This means that only 6.9% of the materials entering the global economy come from recycled or reused sources, highlighting the scale of the challenge and the opportunity for investment in more sustainable systems^.
Themes and funds to tackle the challenges
Thankfully there are now thousands of companies offering solutions in various areas like biodiversity, water treatment, clean energy and more – here are a few funds to consider when looking at sustainability.
Ninety One Global Environment
Managers Deirdre Cooper and Graeme Baker have a distinctive approach in this fund, looking for companies which are benefiting from, and contributing to, a more decarbonised economy.
The process is incredibly in-depth, looking throughout the entire supply chain of the company for carbon emissions, as well as a thorough analysis of the company financials.
The fund will only have 20-40 stocks from across both emerging and developed markets.
Examples of electrification & energy efficiency holdings in the fund include Infineon Technologies, which produces power semiconductors used in electric vehicles, renewable energy systems, charging infrastructure and industrial efficiency applications.
Another is Waste Management which operates waste collection, recycling and landfill-gas projects, supporting resource recovery and emissions reduction^^.
Regnan Sustainable Water & Waste
Launched in 2021, Regnan Sustainable Water & Waste is a global, high-conviction fund that targets companies within the water and waste value chains, emphasising medium-sized firms with strong earnings visibility.
This ESG-integrated strategy is distinctive, tapping into under-researched themes and offering investors a unique product with minimal overlap with traditional global equity portfolios.
The fund’s largest holding is Watts Water Technologies which develops valves, controls and water-management technologies that improve efficiency, safety and conservation in buildings and industrial systems^^.
Rathbone Greenbank Global Sustainable Bond
This global bond fund follows a ‘best ideas’ approach, focusing on sustainable themes aligned with the UN Sustainable Development Goals and investments that contribute to a more sustainable world.
The fund maintains a highly active approach with a very broad investment universe. Every investment undergoes a sustainable screening process by the Greenbank Ethical, Sustainable and Impact research team.
The final portfolio holds 180-200 names. The fund’s main themes can be grouped into five areas: climate change & decarbonisation; resource efficiency & circular economy; environmental protection; social progress & inclusion; and sustainable finance & green bonds.
Liontrust Sustainable Future Managed
The Liontrust Sustainable Future Managed fund was launched in February 2001 and has returned almost 300% to investors in the past 20 years^^^. Every investment in this fund has to meet four set criteria: thematic drivers; sustainable credentials; good fundamentals; and attractive valuation.
The team has identified three megatrends with strong and dependable growth prospects. These are: better resource efficiency (cleaner); improved health (healthier); and greater safety and resilience (safer).
Within these three buckets the team has identified 22 areas of predictable and resilient growth. The final portfolio consists of 40-60 stocks.
*Source: Earth Overshoot Day, 2026
**Source: Global Footprint Network, 15 January 2026
***Source: PWC
****Source: Schroders, Earth Overshoot Day 2023
^Source: Global Circularity Report 2025
^^Source: fund factsheet, 30 June 2026
^^^Source: FE Analytics, total returns in pounds sterling, 28 July 2006 to 28 July 2026
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. Darius’s views are his own and do not constitute financial advice.
Main image: sustainable, ESG, guillaume-de-germain-6Xw9wMJyHus-unsplash
