Climate change is one of the biggest challenges of the 21st century and it is affecting our environment, society and economy. This creates risks, but equally provides opportunities for innovative business able to provide solutions. Two big trends emerging are energy transition and energy efficiency.
In order to ensure the increase in average global temperature is kept well below two degrees when compared to pre-industrial levels, the world needs to change to cleaner energy and become more energy efficient. Two holdings in our Amity funds range particularly illustrate those themes: Greencoat UK Wind and Schneider Electric. Greencoat owns a portfolio of 19 wind farms located in the UK, generating over 420MW,
both onshore and offshore. Schneider Electric is a global specialist in energy management, providing adaptive technologies for energy-efficient homes and smart buildings. Its products and services include energy management systems, smart metering systems and energy and carbon dashboards.
The urgency of issues such as climate change increases the attraction of green bonds or thematic investments. There are also more tools available, making true ESG integration easier than before. More and more investors are also calculating the carbon emissions of investments, enabling further risk management and improved portfolio resilience.