BNP AM

The sustainable investor for a changing world

Investing in companies at the forefront of the energy transition

THE OPPORTUNITY SET

To meet the Paris Accord targets on rising global temperatures and growing energy demand due to expanding and wealthier populations, the energy transition towards a low carbon economy is expected to accelerate in the next decade. 

The global energy mix is changing and by 2030, it is estimated that: 

  • Low carbon energy will increase to 60%1
  • Fossil fuels will decrease to 40%1

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 the changes in:

Transition in the energy system is expected to accelerate in the next decade

For example, huge leaps in technological advancements coupled with changing supply and demand have driven down the price of wind and solar energy, making them more affordable and prevalent.

Through decarbonisation, digitalisation and decentralisation, the energy transition presents a large and diverse investment opportunity set of US$115 trillion .2

KEY HIGHLIGHTS: BNP PARIBAS ENERGY TRANSITION

BNP Paribas Energy Transition invests in all-cap companies globally that seek to take advantage of the energy transition by investing in three areas that, we believe, are central to its success:

Features of energy transition

Its long-only approach could potentially generate higher returns in exchange for greater volatility.

BNP Paribas Energy Transition is recognised  as a ‘best-in-class thematic impact (environmental)’ fund3 and contributes to three Sustainable Development Goals (SDGs).

Affordable and clean energy
Industry innovation and infrastructure
Sustainable cities and communities

OUR EXPERTISE

BNP Paribas Energy Transition is 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 two quantitative analysts, and have access to the BNP Paribas Asset Management Sustainability Centre, which provides proprietary research and data.

Asset Asian Awards 2021
Editor’s Triple Star – Energy Transition Fund4
Sustainability benchmark
Thematic Impact – Environmental – Best-in-class3

RESOURCES & INSIGHTS

Getting to net zero – The view for the energy sectorGreen hydrogen – investing in the ‘Swiss army knife of decarbonisation’
As discussions at the COP26 international climate conference continue, Thibaud Clisson dives into one vision of a net-zero future
Read more
Climate change is a threat to life on earth through its impact on livelihoods, health and income, and nature as a whole.
Read more

Sources:
1. Citi, June 2017
2. IRENA, International Renewable Energy Agency, World Energy Transitions Outlook, April 2021
3. Benchmark Sustainability Awards 2021 reflects the performance from 1 July 2020 to 30 June 2021
4. The Asset – Asset Asian Awards 2021, Sustainable Investing, reflects the performance from 1 January to 31 December 2020


DISCLOSURES

This advertisement has not been reviewed by the Monetary Authority of Singapore. It is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Singapore Limited [BNPP AMS]. It is produced for information purposes only and does not constitute: 1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. It does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors should consult their own professional advisors in respect of legal, accounting, domicile and tax advice prior to investing in the fund(s), and in the event that he chooses not to seek advice from professional advisors, he should make an independent determination of the suitability and consequences of an investment. Investors considering subscribing to the fund(s) should read carefully the most recent prospectus, offering document including the risk factors and consult the fund(s’) most recent financial reports before investing, as available from BNPP AMS or its authorised distributors. Investments involve risks. Investments in emerging markets involve above-average risk. Given the economic and market risks, there can be no assurance that the fund(s) will achieve its/their investment objectives. Investments in the fund are not deposits or other obligations of, or guaranteed, or insured by BNPP AMS or its authorised distributors or its affiliates and are subject to investment risks, including the possible loss of principal amount invested. Returns may be affected by investment strategies or objectives, markets and economic conditions. Past performance of the fund(s) or the managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the fund(s) or the manager and the value of the investments in fund(s) may go down as well as up. Investors may not get back the amount they originally invested. Funds which are invested in emerging markets, smaller companies and derivative instruments may also involve a higher degree of risk and are usually more sensitive to price movements. Views and opinions included herein constitute the judgment of BNPP AMS and its affiliates at the time specified and may be subject to change without notice. BNP PARIBAS ASSET MANAGEMENT Singapore Limited – registered office at 20 Collyer Quay, #01-01, 20 Collyer Quay, Singapore 049319. Company Registration No. 199308471D.