Clean energy
Investing in innovative clean energy solution companies globally
The opportunity
We are going from a world of abundance to one of scarcity – of energy, critical materials, food and water. This, alongside the more frequent and severe effects of climate change, is bringing about a substantial change in the global energy mix: a shift away from fossil-based systems of energy production and consumption, such as oil and coal, towards renewable energy sources like wind and solar.
However, this shift will require unprecedented capital investment – valued at USD 132 trillion – in the coming decades.1 This, we believe, should present a significant opportunity for innovative companies providing solutions to reduce energy-related emissions.
Strategy highlights
Actively investing in ‘solution-providers’
Our Clean Energy Strategy targets companies globally that provide solutions to reduce energy-related carbon emissions. These companies offer products and services across the entire energy transition value chain, including, but not limited to, wind, solar, hydrogen, geothermal, electric vehicles and electrical grid technologies.
Flexible, high-conviction approach
The strategy follows an active, high-conviction approach, focused predominantly on large and mid-cap companies. The strategy is, by design, centred on the energy transition theme without the constraint of a benchmark, giving the investment team greater flexibility to capture opportunities.
Focus on ESG integration
The strategy incorporates environmental, social and governance (ESG) considerations into all stages of its investment process.2 The investment team also collaborates closely with our dedicated Sustainability Centre on ESG scores, carbon footprint data, engagement, proxy voting and more.
Team and expertise
Edward Lees, 30 years of industry experience, and Ulrik Fugmann, 25 years of industry experience, serve as Co-Lead Portfolio Managers, as well as Co-Heads of our Environmental Strategies Group, and have been working together since 2000.3 The Environmental Strategies Group is based in London and sits within our Fundamental Active Equities division. The team comprises diverse roles spanning dedicated fundamental, quantitative and environmental research professionals, with a complementary mix of backgrounds and nationalities.
The team benefits from access to the global research conducted company-wide by our Fundamental Active Equities division, dedicated Sustainability Centre, Quantitative Research Group and Global Macro Research team.
Awards and accolades
The ‘2026 ESG and Sustainability Champions Award’ acknowledges excellence in sustainable investing and is issued by MainStreet Partners, part of UK-based Allfunds Group PLC. Recipients are selected based on their proprietary ESG and sustainability ratings, assessed across the three core pillars of asset manager, strategy and portfolio. The 2026 evaluation covered over 10,500 strategies managed by more than 480 asset managers globally.
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Thematic investing
Shaping tomorrow’s investment opportunities
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[1] IRENA World Energy Transitions Outlook 2023 1.5⁰ C Scenario Outlook, 2023
[2] ESG: Environmental, Social and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology which integrates all three aspects of E, S & G
[3] BNP Paribas Asset Management, as at April 2024. Ed and Ulrik worked together at Goldman Sachs (2000-13), North Shore Partners (2013-18), Sustainable Solutions (2018-19), and BNP Paribas Asset Management (2019 – present).
Important information
This material is issued by BNP PARIBAS ASSET MANAGEMENT Malaysia Sdn Bhd, an investment management company holding a Capital Markets Services Licence under the Capital Markets and Services Act 2007 of Malaysia, having its principal place of business at Vista Tower, Level 48D, The Intermark 348 Jalan Tun Razak 50400 Kuala Lumpur, Malaysia. This material has not been reviewed by the Securities Commission Malaysia.
This material is produced for information purposes only and does not constitute:
- 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
- investment advice.
Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor’s investment portfolio.
Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to financial instruments may have a significant effect on the results presented in this material. Past performance is not a guide to future performance and the value of the investments in financial instrument(s) may go down as well as up. Investors may not get back the amount they originally invested.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, performance may at times be better or worse than the performance of relatable strategies that do not apply such standards.
This is not an exhaustive list of risks. For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.