To reach Net Zero and avoid the worst effects of climate change, the world needs to wean itself off carbon-intensive energy – fast. For this to be possible every country needs to undergo a complete change to the way it sources, produces and delivers energy. The clean energy revolution is likely to profoundly change the world, but what’s not so clear is exactly how and when these changes will occur. This makes the challenge for investors more acute.
How should investors take advantage of the massive flows of capital into the energy transition – estimated to rise to US$5.6 trillion by 2031 – while simultaneously managing the risks to their investment portfolios?
This is the key question at the heart of this new Natixis Investment Managers white paper.
The white paper brings together the views of three investment experts from three affiliates of Natixis IM, including IML, with significant experience in energy investment, from different parts of the world:
- Tim Wood, Portfolio Manager and Head of ESG at IML
- Jens Peers, Global CIO of Equities and Fixed Income, Mirova
- Chris Wallis, CEO and CIO, Vaughan Nelson
The paper delves into the scale of the opportunity, how far into the multi-decade transition we are and their advice to investors on how to approach the various opportunities available.
They also discuss:
- The investment opportunities they are most optimistic about, including electrification, wind, nuclear, natural gas, carbon capture and storage and hydrogen.
- The main risks they see for investors including government regulation, technological risk and geopolitical risk.
Interested in ESG investing?
Read more about our Sustainable Future Fund.
While the information contained in this article has been prepared with all reasonable care, Investors Mutual Limited (IML) (AFSL No. 229988) accepts no responsibility or liability for any errors, omissions or misstatements however caused. This information is general in nature and does not constitute personal advice. This advice has been prepared without taking account of your personal objectives, financial situation or needs. The fact that a particular security may have been mentioned should not be interpreted as a recommendation to buy, sell or hold that stock. IML is a responsible entity for the IML Sustainable Future Fund. Investors should consider the relevant Product Disclosure Statement and Target Market Determination available on the website www.iml.com.au in deciding whether to acquire or continue to hold an investment in the Fund.
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