ESG & Energy Transition
Socially conscious investing, well underway pre-COVID, has gained renewed momentum. COVID’s destructive aftermath, and accelerated global warming, lead more investors to take into consideration stakeholder capitalism and the bigger picture. Consistent with this theme, institutional investors are shifting their portfolios away from carbon-intensive assets toward renewables. Renewables are now becoming cost competitive with hydrocarbon fuels and we believe a number of clean tech companies are positioned to benefit.
What we’re watching:
- EV cost parity
- Traditional oil & gas company moves into sustainable energy assets
- US emissions policy and Paris Agreement
- Hydrogen technology
Related themes:
$3.5T
per year in renewable energy investments required, on average, between now and 2050 to limit global temperature rise
76%
of survey respondents age 18-34 indicate that social responsibility and sustainability are an important part of purchase decisions
$12T
Sustainable, responsible and impact investing assets in the US
No single silver bullet will solve the world’s energy crisis. We see room for multiple technologies to succeed, enabling investors to capitalize on next-generation energy technology investments.
Jeffrey Osborne, Sustainable Energy & Industrial Technology Primer