Investment managers mark World Energy Day 2020

Three investment companies share their thoughts on World Energy Day

Today is World Energy Day, an annual day marked internationally that aims to increase awareness of energy efficient policies and the need to conserve natural resources.

It is also a chance to show the impact energy choices make on the environment. This year’s World Energy Day Conference is focused on sustainable energy in Africa, but UK and EU finance businesses are also observing the day.

Here, ESG Clarity has spoken to three investment professionals about the significance of World Energy Day.

KBI Global Investors

Dublin-based KBI Global Investors, which believes we are at a “tipping point” in energy production and use driven by regulation and technology, has produced this video to mark the day.

In it lead manager Colm O’Connor explains what we are seeing from governments in order to meet climate objectives, and the advancements in technology that will help stimulate the move to clean energy. “We’ve reached a tipping point where wind and solar are the cheapest form of electricity in many places around the world,” he says.

The firm also said strategies invested in the transition to clean energy will “benefit from exposure to key structural growth trends such as decarbonisation, smart building technologies, smart grid infrastructure, increased use of energy storage and disruptive technologies”.

EQ Investors

In its recent impact report, EQ Investors focused on carbon emissions, and has this year partnered with carbon analytics company Urgentem to see how its portfolios align with a low carbon future.

EQ head of investing Sophie Kennedy said World Energy Day is an opportunity to emphasise the importance of reducing carbon emissions as well as showing the “importance of efforts to reduce practices that harm the environment and raising awareness of the importance of rationalising energy use”.  

American Century Investments

“World Energy Day presents an opportunity for us to embrace the notion that the environment and the economy intersect,” said Guillaume Mascotto, head of ESG and investment stewardship for American Century Investments.

“It is crucial investments be allocated with the long-term objective of safeguarding of the planet without dialling back returns.”

But he added World Energy Day should include other exposed sectors, such as agriculture forestry and land use, waste management, industry and even financials.

“It’s an opportunity for the investment community to reflect on the importance of themes such as energy poverty where fossil fuels is often the only affordable, reliable supply. How can we focus on the necessary transition towards a lower-carbon economy, while balancing social and economic considerations?”

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Natasha Turner

Natasha is global deputy editor at ESG Clarity, part of the Bonhill Group, and has been a financial journalist for six years. She has been shortlisted for Story of the Year and Investment Journalist of...