Sustainable investing

A view from the sharp end of the energy transition

In the third instalment of our Inside Sustainable Investing series, we look at ScottishPower to discuss how they’re tackling the climate change challenge and why they’re included in the Global Environment portfolio.

Apr 6, 2021

35 minutes

Deirdre Cooper
Graeme Baker
In the third instalment of our Inside Sustainable Investing series, we look at ScottishPower to discuss how they’re tackling the climate change challenge and why they’re included in the Global Environment portfolio.

Keith Anderson, CEO of ScottishPower (Iberdrola Group), joins Co-Portfolio Managers of Ninety One Global Environment, Deirdre Cooper and Graeme Baker, to explain how they have been tackling the challenges posed by climate change and the need for clean electricity for over 15 years. A business at the forefront of the world’s transition to a low-carbon world, Deirdre and Graeme will also discuss the characteristics that led to them adding Iberdrola to their portfolio.

Key topics of the discussion include:

  • Where are we today in the energy transition?
  • How are technology and innovation changing the economics of energy?
  •  How much investment is required to decarbonise the energy system?
  •  What will a low-carbon electricity system look like in practice?

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Specific risks

Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow.

Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income.

Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.

Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.

Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios.

Commodity-related investment: Commodity prices can be extremely volatile and losses may be made.

Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.

Sustainable Strategies: Sustainable, impact or other sustainability-focused portfolios consider specific factors related to their strategies in assessing and selecting investments. As a result, they will exclude certain industries and companies that do not meet their criteria. This may result in their portfolios being substantially different from broader benchmarks or investment universes, which could in turn result in relative investment performance deviating significantly from the performance of the broader market.

All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results.

Authored by

Deirdre Cooper
Portfolio Manager
Graeme Baker
Portfolio Manager

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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