CS rounds up ESG investors' focus areas amid decarbonisation push

Xinyi Solar Holdings

11/04/2022 12:51

** As geopolitical tensions fuel energy security concerns
and stress the need to speed up decarbonisation in Europe,
Credit Suisse points to what investors might miss
out urn:newsml:reuters.com:*:nL5N2W80MR
    ** Increasing energy supply self-sufficiency might benefit
the valuations of companies exposed to renewables and energy
efficiency technologies, CS says 
    ** Yet, while recent returns for solar and wind themes have
been "promising", the same does not hold true for energy
efficiency themes, it adds
    ** The broker says 17 companies across the decarbonisation
themes - including Enel  ENEI.MI , Emerson Electric  EMR.N ,
Haier Smart Home  600690.SS , Nio Inc  NIO.N , and Williams
Companies Inc  WMB.N  - are underrepresented in the share of
funds that have a holding in them
    ** CS notes technology, industrials and consumer durables
sectors have the largest overweight position versus energy and
banks, where ESG investors are largely underweight 
    ** It adds the average ESG fund is overweight in developed
markets and underweight in emerging countries, especially China
    ** "Investors continue to like tech," CS says, with
Microsoft  MSFT.O , Schneider Electric  SCHN.PA , ASML  ASML.AS 
 and Alphabet  GOOGL.O  as the most popular stocks in ESG funds
    ** ESG investors also have high holdings in Signify
 SGFY.N , Xylem  XYL.N , Xinyi Solar  0968.HK , Koninklijke DSM
 DSMN.AS  and Vestas  VWS.CO  given their market capitalization,
CS adds
    ** The broker says ESG funds are more exposed to ageing,
water, building energy efficiency and sustainable food, less to
education, energy storage, industrial energy efficiency and
solar 
    ** The review covers 125 actively managed ESG equity funds

 (Reporting by Federica Urso)
 ((Federica.urso@tr.com))