The sustainable investor for a changing world
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Energy Transition Strategy

 

Contribute to the low-carbon energy transition by investing in companies dedicated to finding solutions that address climate change.  

OPPORTUNITY

To meet the Paris Accord targets on rising global temperatures and growing energy demand due to expanding and wealthier populations, the energy transition towards a low carbon economy is expected to accelerate in the next decade.

The global energy mix is changing and by 2030, it is estimated that:

  • Low carbon energy will increase to 60%1
  • Fossil fuels will decrease to 40%1

We believe companies participating in the shift towards a low-carbon economy (the energy transition) could offer attractive growth potential and should remain well supported over the long-term given the changes in:

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For example, huge leaps in technological advancements coupled with changing supply and demand have driven down the price of wind and solar energy, making them more affordable and prevalent.

Through decarbonisation, digitalisation and decentralisation, the energy transition presents a large and diverse investment opportunity set of US$115 trillion2.

 

KEY HIGHLIGHTS

BNP Paribas Asset Management’s energy transition strategy invests in all-cap companies globally that seek to take advantage of the energy transition by investing in three areas that, we believe, are central to its success:

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Its long-only approach could potentially generate higher returns in exchange for greater volatility.

BNP Paribas Energy Transition is ranked first quartile among peers for it 1-year performance3 and contributes to three Sustainable Development Goals (SDGs).

 

clean energyindustry-innovation-infrastructuresustainable-cities
www.un.org

OUR TEAM

BNP Paribas Energy Transition is 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.

RESOURCES

Infographic: Energy transition and the $115 trillion opportunity2

What will recession mean for the energy transition?

Green hydrogen – investing in the ‘Swiss army knife of decarbonisation’

Post pandemic, we believe there will be a renewed focus on the energy transition by politics, the public and investors.

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Hydrogen can be seen as the answer to the challenge of reaching net-zero emissions as long as it can be produced without emitting CO2 – in other words, as long as it is green

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Source(s):

  1. Citi, June 2017
  2. IRENA, International Renewable Energy Agency, World Energy Transitions Outlook, April 2021
  3. Morningstar, as of 31 July 2021. Peers refer to the Morningstar category: Sector Equity Alternative Energy