November 23, 2020 / Regnan Global Equity Impact Solutions Fund
Regnan’s Global Equity Impact Solutions fund Fund invests in mission-driven companies we believe are well placed to solve the world’s biggest problems.
This is the story of one of those companies, Dutch energy pioneer ALFEN.
THE RISE of renewable energy is one reason for hope in the battle against climate change.
Electric vehicles — and their gradual replacement of cars powered by internal combustion engines — is an important part of this story.
Transport accounts for 14 per cent of global greenhouse emissions. Electric vehicles also reduce pollution which triggers health problems and premature deaths.
However, the transition to renewable energy poses new challenges.
For example, the grid infrastructure finds it difficult to deal with renewable energy because most of it comes from intermittent sources.
Also, many countries lack sufficient charging points for electric vehicles.
An energy pioneer with new solutions
Regnan’s impact investment team aims to outperform the broad global equity market over the long term by investing in companies that provide solutions for the world’s growing sustainability needs.
One of those companies is Netherlands-based Alfen which has a long history of developing market-leading products based on its expertise in electricity.
The Dutch energy pioneer has a central role in the energy grid as a builder of transformer substations, energy storage systems, electric vehicle charging stations and other products and services.
The business invested early in electric vehicle charging (from 2008) and energy storage (2011), and has now built a competitive advantage in these fields.
Alfen’s transformer substations provide millions of households and companies with energy, while thousands of electric vehicles make daily use of its charging stations.
How Alfen solves energy problems
Alfen makes storage systems that solve the problem of intermittency. This allows power produced by renewable energy to be saved until electricity consumers need it.
This also makes the electricity grid more stable by reducing the unpredictability and volatility of total power generation.
It’s a huge market. Some €40 billion ($A65 billion) must be invested into the grid across Europe in coming years to keep pace with renewables expansion, according to the European Commission.
Alfen also makes charging points for electric vehicles, which will greatly boost their use.
Over the next decade Europe will need to spend €20 billion annually on public charging points to decarbonise road transport, the European Federation for Transport and the Environment estimates.
Alfen helps solve the world’s biggest problems
Regnan identifies companies such as Alfen using the 17 United Nations Sustainable Development Goals (SDGs) and their 169 underlying targets as an investment lens.
The SDGs are a 15-year plan to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere.
In 2019 the UN called for “a decade of ambitious action to deliver the goals by 2030.
“Evidence shows that investing in the SDGs makes economic sense, with estimates highlighting that achieving the SDGs could open up US$12 trillion of market opportunities and create 380 million new jobs,” the UN says.
Drawing on the SDGs and their targets, Regnan’s investment team has built a comprehensive, proprietary investment framework – the Regnan SDG Taxonomy.
Alfen’s activities are linked to two SDG targets for 2030:
- SDG target 7.2: Substantially increase the share of renewable energy in the global energy mix
- SDG target 11.2: Provide access to safe, affordable, accessible and sustainable transport systems for all
Find out more
Regnan is a responsible investment leader with a long and proud heritage providing advice and insights on important environmental, social and governance issues.
For more than 20 years our pioneering analysis has changed the way investors and businesses think about value creation and their wider responsibilities to society.
Building on that expertise, in 2020 Regnan expanded into responsible investment funds management, backed by the considerable resources of Pendal Group.
While continuing to provide engagement, advisory and research services, Regnan now also delivers innovative sustainable and impact investment solutions.
The new Regnan Global Equity Impact Solutions Fund invests in mission-driven companies we believe are well placed to solve the world’s biggest problems.
Managed by a four-person investment team based in London, the fund aims to outperform the broad global equity market over the long term by investing in companies that provide solutions for the growing, unmet sustainability needs of society and the environment.
Regnan Global Equity Impact Solutions Fund is distributed in Australia by Pendal and in the UK, Europe and the US by J O Hambro.
Australian investors: Contact Jeremy Dean at Jeremy.Dean@Regnan.com
Information for UK, European and other international investors: www.regnan-johcm.com
This article has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and the information contained within is current as at 27 November 2020. It is not to be published, or otherwise made available to any person other than the party to whom it is provided. PFSL is the responsible entity and issuer of units in the Regnan Global Equity Impact Solutions Fund (Fund) ARSN: 645 981 853. A product disclosure statement (PDS) is available for the Fund and can be obtained by calling 1800 813 886 or visiting www.pendalgroup.com. You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of units in the Fund. An investment in the Fund is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested.
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