50 Shades of Green: Sustainable investing with Robeco
UMushroom Podcast: What Your Bank Doesn't Tell You
Sustainable investments and the energy transition are increasingly relevant and important topics. We had the pleasure to welcome Berit Gehring from Robeco, a Client Portfolio Manager that specialises in Sustainable investments.
We discussed decarbonisation, the electrification of the energy value chain, and the crucial role of government and macroeconomic factors and more! Find out about the challenges and opportunities associated with the shift to renewable energy and everything you need to know abut sustainable investing!
Key Themes of the Episode:
Infrastructure and Energy Efficiency:
Challenges with Electric Vehicles: Many people want to switch to electric vehicles but face the issue of not being able to install charging stations at home due to insufficient network expansion.
Importance of Energy Efficiency: Energy efficiency is essential for achieving climate goals and reducing CO2 emissions. Electrification and decarbonization of the energy value chain are central aspects.
Market Developments and Challenges:
Transition to Renewable Energy: The need to switch to electric processes and applications like heat pumps and electric vehicles is highlighted, as renewable energies like solar and wind power provide electricity.
Strategies to Achieve Net-Zero Goals: These strategies have evolved over time. Initially, oil and natural gas were considered cleaner than coal, which has since changed. The Russia-Ukraine war accelerated Europe's effort to become independent from Russian gas, leading to increased investments in renewable energies.
Market Dynamics and the Stock Market:
Stock Market and Reality: The stock market often does not reflect current reality but is forward-looking. In 2022, the Russia-Ukraine war led to significant investments in solar energy, causing stock prices to rise temporarily. In 2023, however, there was a correction as expectations were too high and actual developments lagged behind.
Long-Term Investment Strategies:
Long-Term Planning: Investments should be planned for the long term, at least five years. A broad portfolio approach covering various areas of the value chain has proven successful. Thematic funds offer a way to invest more broadly and benefit from the expertise of professional asset managers.
Specific Opportunities and Risks:
Promising Areas: Areas such as equipment for electricity networks and energy efficiency in data centres show potential. Direct investments in individual stocks can be volatile and require deep expertise. Passive ETFs focusing on renewable energy can also be volatile and often cover only specific sectors like solar and wind.
Recommendations for Investors:
Staggered Investment: A staggered investment over time can help minimise risk. Delegating to professional asset managers can be worthwhile, especially in specialised and complex areas like sustainable energy.
Sustainable investments, especially in the field of renewable energy, offer numerous opportunities but also face challenges. A long-term approach can help investors navigate the world of sustainable investments. Professional management and in-depth knowledge continue to be the core advantage in recognising the best opportunities and minimising risk.
Tune in to the latest episode of “What Your Bank doesn’t tell you” and learn more about the exciting world of sustainable investments and the future of the energy transition!
