Transmission What sustainable investing looks like in practice with Shanu Mathew (Lazard Asset Management)
Sep 30, 2025
Shanu Matthew, Senior VP at Lazard Asset Management, shares insights on sustainable investing focused on the energy transition. He discusses the four pillars of sustainability and how stocks are selected using a unique sustainability scorecard. Shanu highlights the surge in AI-driven investments in data centers, the challenges of rapid demand vs. utility planning, and creative solutions developers are exploring. He emphasizes the importance of monitoring industry signals for investors and argues for the critical role of storage in managing AI workloads.
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Integrated Fundamental + Sustainability Screening
- Lazard combines fundamental cash-return analysis with a proprietary sustainability score to pick stocks.
- Analysts cover both financials and sustainability to link ESG advantages to business fundamentals.
Incumbents Often Win The Transition
- Pure-play clean energy stocks have lagged recently while incumbent firms capture underappreciated transition tailwinds.
- Owning dominant incumbents exposed to regulation or rising TAM often yields better risk-adjusted returns.
Think In Multi‑Year Investment Horizons
- Underwrite prospective holdings for a multi-year thesis, typically three to five years.
- Exit when the thesis breaks or the risk-reward becomes unfavourable after appreciation.