The sustainable fund manager looking beyond renewables
Stewart Investors finds more value in companies further along the renewable energy and EV supply chains to find its exposure to the energy transition.
Investing in renewable energy has been the go-to strategy for sustainable fund managers who wish to help finance the worldwide transition away from fossil fuels.
But not all sustainably-focused investors believe that buying into companies with wind or solar portfolios ticks all the environmental, social and governance (ESG) boxes.
Stewart Investors, the Edinburgh-based fund manager that began investing in emerging Asia in the 1980s, has invested in hundreds of companies that align with the UN Sustainable Development Goals, but not a single utility-scale renewable energy company.
“We’re looking to invest in high-quality companies that have positive sustainable development prospects. We have had issues with governance, politicisation and complex business models and human rights issues when screening utilities that have exposure to renewable energy,” senior investment specialist Pablo Berrutti said.
