Morningstar’s Bioy: “Investors increasingly understand the need to finance transition companies”
Hortense Bioy, global director of Sustainability Research at Morningstar sat down with NZI editor Mona Dohle to examine why investors are turning from low carbon to energy transition funds and if the US elections could become a stumbling block on the road to net zero
While 2023 has been widely seen seen as a bad year for investors in renewables, Bioy points out that assets in climate transition funds have been rising steadily.
At the same time, a significant change in strategy is taking place with investors showing less interest in simple low carbon strategies and instead turning towards climate solution or climate transition funds.
“Climate transition funds offer the best of both worlds, they aim to decarbonise portfolios whilst also offering access to climate solutions” Bioy says.
While classic sustainability funds tend to be mainly popular in Europe, investor appetite for transition funds exceeds beyond the continent as investor appetite in Asia and the US is growing rapidly.
Looking into the New Year, Bioy believes that the outcome of the US election could become a key signal for investors going forward.
The full podcast can be accessed below.
