investment viewpoints

    A new urgency: clean energy and adaptation

    A new urgency: clean energy and adaptation
    Paul Udall - Portfolio Manager, Global Equities

    Paul Udall

    Portfolio Manager, Global Equities
    Peter Burke-Smith - Junior Portfolio Manager

    Peter Burke-Smith

    Junior Portfolio Manager

    Recent developments have reinforced the case for both the clean energy transition and stronger climate change adaptation measures.

    In this issue of Futureturns – our quarterly report on investment thematics and trends in equity markets – we discuss the accelerated move toward energy independence, as well as ways to adapt to the inevitable effects of global warming.

    Key points:

    • Surging commodity prices in recent months have reinforced the long-term case for transitioning away from fossil fuels, particularly in Europe. This is despite short-term headwinds from higher prices for metals and other inputs needed for renewables infrastructure. 
    • At the same time, scientists are issuing ever-louder warnings on the need for permanent adaptation to a certain level of climate change. There is broad scope for adapting in areas such as land use and industry. Failure to adapt will have grave consequences, according to the Intergovernmental Panel on Climate Change.
    • We describe the sectors that are well-placed for the renewables transition, as well as the growing investment opportunities arising from climate adaptation. Our Climate Transition Strategy − winner of Best Climate Focused Fund at the ESG Clarity Awards 2022 − is positioned to capture these themes as we envision a dramatic transformation of the global economy.

    Please click the link at the top of the page to download this edition of Futureturns.

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