Global Sustainable Equity news and opportunities (Part I)

‘Build Back Better’

For us, the most significant news flow in the quarter was in relation to climate action. The catchphrase to come out of the G7 meeting in Cornwall in the UK was ‘Build Back Better’. Central to that statement is the recognition that climate change mitigation and adaption, and protection of biodiversity, lie at the heart of achieving it. All G7 countries committed to deep emission reduction targets in the coming decade and to reach net zero carbon by 2050.

A few weeks before the G7 summit the International Energy Agency (IEA) published a special report containing the world’s first comprehensive study of how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access and enabling robust economic growth. A step change in investment in clean technologies is required this decade with a fourfold increase in annual renewable energy investment and a twentyfold increase in electric car production. 

Overall, the IEA sees a requirement for US$100 trillion in total clean energy investment over the next three decades. Whether Net Zero is achievable or not by 2050, one thing is certain, we believe there is an enormous investment opportunity ahead of us. The investment logic for low carbon investing has never been stronger and we see a large and diverse opportunity set.

The above information is provided by Janus Henderson Investors

ZA One: Sustainable development has become a global investment theme. If you are interested in this theme, please check out Janus Henderson Balanced Fund, Janus Henderson Flexible Income Fund and other funds with this theme on ZA One App.

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