Renewables: moving beyond the spin by pushing for circularity
Date: 25 May 2023
As asset managers look at the financial and environmental benefits of clean energy, one practical way to invest is buying shares in renewable energy infrastructure investment trusts. These own and operate assets, such as wind farms and solar power plants, and sell the energy generated. These trusts deliver high income returns by distributing their profits in the form of dividends. Over the long term, they also act a portfolio diversifier as their performance is not strongly correlated with equity or bond markets.
Very revealing and extremely valuable
We have been engaging closely with our renewable energy holdings. These discussions have been very revealing and extremely valuable in forming our opinion on how sustainability focused the various management teams really are. Some are well versed in the issues and have frameworks in place. As a general rule, supply-side has been better considered than end of life plans.
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Climate Assets Funds
The Climate Asset Funds invests in companies that make a positive contribution to the world, with a strong underpinning of ethical values.