Contribute to the low-carbon energy transition by investing in companies dedicated to finding solutions that address climate change.
THE OPPORTUNITY SET
We believe companies participating in the shift towards a low-carbon economy (the energy transition) could offer attractive growth potential and should remain well supported over the long-term given changing public policy, technology, and consumer and investor preferences.
As part of our energy transition suite, we offer two equity funds: BNP Paribas Energy Transition and BNP Paribas Environmental Absolute Return Thematic (EARTH).
Both invest in companies across the globe that through their products, processes or services address environmental challenges in the energy, materials, agriculture, and industrials sectors. However, BNP Paribas Energy Transition can only take long positions, while BNP Paribas EARTH can go both long and short to meet its absolute return target.
WHY INVEST IN BNP PARIBAS ENERGY TRANSITION?
BNP Paribas Energy Transition seeks to take advantage of the energy transition by investing in three areas that, we believe, are central to its success:
- Renewable and transitional energy production (decarbonisation)
- Energy technology and efficiency (digitalisation)
- Energy infrastructure, transportation and storage (decentralisation)
Its long-only approach could generate higher returns in exchange for greater volatility.
WHY INVEST IN BNP PARIBAS EARTH?
BNP Paribas EARTH seeks to capitalise on the same three themes as BNP Energy Transition, as well as natural capital such as water, land, forestry and food. Another key difference is that it follows a long/short approach. It will invest in companies addressing environmental challenges, while shorting those with unsustainable business models that are vulnerable to transition risk, which can help to mitigate volatility.
Both funds are co-managed by Ulrik Fugmann and Edward Lees, who have been working together since 2001. They have vast experience in investing and managing businesses in energy, materials, agriculture, and industrials markets. They are supported by two dedicated fundamental research analysts, as well as a quantitative analyst, and have access to the BNP Paribas Asset Management Sustainability Centre, which provides proprietary research and data.
RESOURCES & INSIGHTS
What will recession mean for the energy transition?
Big oil – Staring down the barrel of an uncertain future
How responsible is your asset manager?
|Post pandemic, we believe there will be a renewed focus on the energy transition by politics, the public and investors.||On the structural side, the oil industry faces three big challenges: decarbonisation, deflation and detoxification.||A recent report ranked BNP Paribas Asset Management in second place for its responsible investment strategy.|
The investments in the Funds are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the Funds described being in risk of capital loss. For a complete description and definition of risks, please consult the last available prospectus and KIID of the Funds that can be downloaded free of charge from our website: www.bnpparibas-am.com.