AAs global governments reshape their economies to achieve a more sustainable future, capital will shift away from highly polluting industries and sectors to greener and cleaner ones. However, this change will not happen overnight, providing investors with unique opportunities to capitalize on the companies that are driving the change.
In the next webcast, Understanding Investing in Carbon Transformation: A Due Diligence SessionRoger Mortimer, Portfolio Manager, KraneShares, will explore the low carbon leaders of tomorrow and discuss a new strategy focused on carbon transformation.
More specifically, the Kraneshares Global Carbon Transformation ETF (KGHG) is an actively managed ETF that aims to capture future low-carbon leaders.
KGHG focuses on companies in traditionally high-emissions industries that are poised to transition from fossil fuels to renewable technologies, according to KraneShares. Companies in high-impact sectors that have a stated commitment and demonstrated action towards decarbonization can grow faster than their peers, as well as potentially benefit from a reassessment and a better environmental, social and environmental score. corporate governance (ESG).
KraneShares argued that decarbonizing operations is becoming increasingly important as pressure on companies to address climate change intensifies. Global energy demand will increase by 50% by 2050 and 80% of global energy consumption is still made up of fossil fuels.
“The three main drivers of decarbonization include: greater policy reforms around emissions regulations, increased flows into ESG and impact investing, and technological advancements that reduce renewable energy costs” , according to KraneShares.
“Green capital spending is an emerging secular theme spanning decades that is crucial to facilitating the transition to decarbonization across all sectors. This significant increase in infrastructure spending will create investment opportunities.”
KGHG can help provide access to emerging decarbonization leaders who are disrupting their industries and provide potential portfolio diversification, as climate-focused investments can act as a differentiated, uncorrelated source of return that is uninfluenced by the economic cycle.
Financial advisors interested in learning more about the global carbon transformation can register for the Tuesday, May 24 webcast here.
Learn more at ETFtrends.com.
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