Saturna Capital Parses the Messy Energy Transition
Aug 21, 2024
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Elizabeth Alm and Levi Stewart Zurbrugg from Saturna Capital dive deep into the complexities of the energy transition. They discuss how ESG factors vary in equities versus credits, and why the transition might be messier than anticipated. Key points include overlooked bond impacts and innovative risk management strategies in green investments. They also tackle criticisms of ESG investing, emphasizing the need for nuanced understanding amidst rapidly changing regulations. Get insights into how holistic approaches can identify quality investments in today's climate-driven market.
Saturna Capital emphasizes the integration of ESG factors in investment analysis to identify resilient companies and reduce risks.
The energy transition faces challenges, particularly regarding the governance of critical metal mining and its environmental and social impact.
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Integrating ESG into Investment Strategies
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Navigating the Energy Transition Challenges
The ongoing energy transition presents complex challenges, notably in the mining of critical metals needed for renewable technologies. Analysts from Saterna Capital assess environmental and social governance issues associated with metal extraction, emphasizing the need for robust governance in mining operations. Companies with transparency in ESG practices—such as fair labor standards and community engagement—are more likely to gain investment support. Saterna’s commitment to thorough evaluation allows them to identify both risks and opportunities within the evolving landscape of renewable energy and resource management.
Saturna Capital views the “the consideration of environmental, social and governance factors as essential in forming portfolios of high-quality companies that are better positioned to reduce risk and identify opportunities.” In this episode of Bloomberg Intelligence’s ESG Currents podcast, BI’s director of ESG research Eric Kane and senior ESG credit analyst Chris Ratti are joined by Elizabeth Alm and Levi Stewart Zurbrugg, senior investment analysts and portfolio managers at Saturna Capital. They discuss how the consideration of ESG factors differs across equities and credits, why the energy transition will be messy, the overlooked impact of bonds, the truths and falsehoods in critiques of ESG, and much more. This episode was recorded on August 18.