Contribute to the low-carbon energy transition by investing in companies dedicated to finding solutions that address climate change.
THE OPPORTUNITY SET
Climate change is real and urgent. By the end of 2017, global average temperatures were about 1.0oC warmer than in pre-industrial times. In response, we are now witnessing a global movement towards a low-carbon economy, which should help to curb global warming and its impact on human and natural systems.
We believe companies participating in this energy transition could offer attractive growth potential, and should remain well supported over the long-term given changing public policy, technology, and consumer and investor preferences.
As part of our energy transition suite, we offer two equity strategies: Energy Transition and Energy Absolute Return Thematic (EARTH).
Both invest in companies across the globe that through their products, processes or services address environmental challenges in the energy, materials, agriculture, and industrials sectors. However, Energy Transition can only take long positions, while EARTH can go both long and short to meet its absolute return target.
WHY INVEST IN ENERGY TRANSITION?
Energy Transition seeks to take advantage of the energy transition by investing in three areas that, we believe, are central to its success:
- Renewable and transitional energy production (decarbonisation)
- Energy technology and efficiency (digitalisation)
- Energy infrastructure, transportation and storage (decentralisation)
Its long-only approach could generate higher returns in exchange for greater volatility.
WHY INVEST IN EARTH?
EARTH seeks to capitalise on the same three themes as the Energy Transition strategy (above). The key difference is that it follows a long/short approach. It will invest in companies addressing environmental challenges, while shorting those with unsustainable business models that are vulnerable to transition risk, which can help to mitigate volatility.
Both strategies are co-managed by Ulrik Fugmann and Edward Lees, who have been working together since 2001. They have vast experience in investing and managing businesses in energy, materials, agriculture, and industrials markets. They are supported by two dedicated fundamental research analysts, as well as a quantitative analyst, and have access to the BNP Paribas Asset Management Sustainability Centre, which provides proprietary research and data.