To reach Net Zero and avoid the worst effects of climate change, the world needs to wean itself off carbon-intensive energy – fast. For this to be possible every country needs to undergo a complete change to the way it sources, produces and delivers energy. The clean energy revolution is likely to profoundly change the world, but what’s not so clear is exactly how and when these changes will occur. This makes the challenge for investors more acute.

How should investors take advantage of the massive flows of capital into the energy transition – estimated to rise to US$5.6 trillion by 2031 – while simultaneously managing the risks to their investment portfolios? 

This is the key question at the heart of this new Natixis Investment Managers (IM) white paper.  

The white paper brings together the views of three investment experts from three affiliates of Natixis IM, including Vaughan Nelson, with significant experience in energy investment, from different parts of the world: 

• Chris Wallis, CEO and CIO, Vaughan Nelson 
• Jens Peers, Global CIO of Equities and Fixed Income, Mirova 
• Tim Wood, Portfolio Manager and Head of ESG at IML 

The paper delves into the scale of the opportunity, how far into the multi-decade transition we are and their advice to investors on how to approach the various opportunities available.

They also discuss:

• The investment opportunities they are most optimistic about, including electrification, wind, nuclear, natural gas, carbon capture and storage and hydrogen. 
• The main risks they see for investors including government regulation, technological risk and geopolitical risk.  

This information is provided for general information purposes only and does not take into account the investment objectives, financial situation or needs of any person. Investors Mutual Limited (AFSL 229988) is the issuer and responsible entity of the Vaughan Nelson Global Equity SMID Fund and the Vaughan Nelson Global Equity SMID Fund (Quoted Managed Fund) (‘Funds’). Vaughan Nelson Investment Management, L.P. is the investment manager. 

This information should not be relied upon in determining whether to invest in the Funds and is not a recommendation to buy, sell or hold any financial product, security or other instrument. In deciding whether to acquire or continue to hold an investment in the Funds, an investor should consider the current Product Disclosure Statement and Target Market Determination for the appropriate class of the Fund, available on the website www.VaughanNelson.com.au or by contacting us on 1300 219 207.