Energy transition – facilitating decarbonization

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Why invest in energy transition?

Structural growth: companies positively exposed to structural long term trends should reduce economic cycle exposures

Portfolio diversification: a global thematic equity strategy, investing across industry sectors and geographic regions providing lower correlation to the broader market

Access attractive growth opportunities: by investing in companies that facilitate more efficient use of resources and emissions reduction and align with global climate mitigation goals

Why now?

There are four broad themes driving the energy transition

Clean transportation

Global EV sales are expected to increase 10x during the current decade and surpass IC in sales the next 15 years

Source: BNEF Long-Term Electric Vehicle Outlook 2021. EV includes battery electric and plug-in hybrid vehicles, IC includes mild hybrid and pure internal combustion engine vehicles. This page contains projections, there is no guarantee these projections will be met.

One of the main catalysts driving growth within these energy transition themes is policy from both governments and corporations

The energy transition universe of over $9 trillion is comprised of companies that are making the biggest impact in reducing emissions. Investing in the energy transition can provide diversification and upside potential to a portfolio as it is encompasses 6 of the 11 GICS® sectors.

Dramatic changes need to occur over the next several decades to hit these goals. At Ecofin, we believe that investing in the facilitaters of decabonization should result in strong performance while making an impact.

Ecofin Investments, LLC is the parent of registered investment advisers Ecofin Advisors, LLC, which is regulated by the Securities and Exchange Commission, and Ecofin Advisors Limited, which is regulated by the Financial Conduct Authority and registered with the Securities and Exchange Commission, (collectively known as “Ecofin”).

This commentary contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical fact, included herein are “forward-looking statements.” Although Ecofin believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect; actual events could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. You should not place undue reliance on these forward looking statements, which speak only as of the date of this publication. Ecofin does not assume a duty to update these forward-looking statements. The views and opinions in this commentary are as of the date of publication and are subject to change. This material should not be relied upon as investment or tax advice and is not intended to predict or depict performance of any investment or any fund managed by Ecofin. This publication is provided for information only and shall not constitute an offer to sell or a solicitation of an offer to buy any securities.