Renewables Energy

Angelo Olympio, Portfoliomanager, ADREALIS Service Kapitalverwaltungs-GmbH, Munich (XOLARIS MARKET NEWS Magazine online:?https://lnkd.in/eSPFRjC )

Electricity has become a vital part of the world without it we would still live like in the stone age it enables industrial production, mobility and entertainment. Our society has become accustomed to the most important technology the internet would not work without electricity. To see if we can produce this electricity in a sustainable way, I will explain in a short paragraph what sustainability means environmental social governance (ESG)

Environmental Social Governance

ESG is the abbreviation for "Environment Social Governance". ESG-based or sustainable investing does not yet function according to a fixed?predefined model. Since there are no uniform guidelines yet and the understanding is often on the subjective level of each individual. The most important criteria are explained below.

Environmental?

This component of ESG investments primarily includes environmental and climate protection. The aim is to ensure that the earth's natural resources are protected during production. Specifically, this includes investments in renewable energies, efficient use of energy and raw materials, and environmentally compatible production and low?emissions to air and water.

Social?

This criterion for ESG investments covers all social impacts of the company's activities, in particular the specific working conditions. This includes above all that human dignity is respected and that good conditions prevail for all. In addition, compliance with labor rights is important. It also includes occupational health and safety, fair conditions at the workplace, as well as appropriate remuneration and opportunities for training and continuing education.?Respect for human rights and human dignity as well as prohibition of child and forced labor.?

Governance

The third aspect of the ESG criteria considers the ethical behavior of the company - both in society and within the company. Of particular importance here are transparency and fairness, Targeted?measures against corruption? transparency and openness; diversity and equal opportunities;

In the creation of a sustainable investment portfolio, the ESG criteria have a decisive function, as according to them certain companies or even?industries are excluded if they are not observed. The exclusion principle, whereby companies that do not meet certain predefined values are excluded from the investment process, is the most common way of implementing ESG criteria.?

One of the "Global Trends" we identify is Renewable Energies even though it serves as a buzzword, renewable energies are predestined for the ESG label. Global investments in renewable energy between 2004 and 2019 amount to USD 3.5?trillion and the trend is rising. Due to ongoing?digitalization, the demand for electricity will?increase even further in the future since the industrial revolution, the energy mix of most countries in the world has been dominated by fossil fuels. This has a significant impact on the global climate and human health. Three-quarters of global greenhouse gas emissions result from burning fossil fuels for energy. Fossil fuels are also responsible for large amounts of local air pollution. This air pollution is known to cause health problems.?

4. Sustainable Investor Summit | Austria Forum | October 14th 2021, Hilton Vienna Park

Presentation of the conference: The “Sustainable Investor Summit” is an industry event in the German-speaking DACH region on the topic of sustainability and impact investing. The conference, which is already in its fourth year, has become a must for professional and institutional investors from the insurance and utilities sector, church sponsors, family offices, foundations, asset managers, decision makers from companies and many others in this segment. Intensive knowledge transfer, exchange of information and experience as well as networking beyond the conference are clear goals for all participants. The conference is certified as climate neutral. All charges for travel etc. will be fully offset by the support of environmental and climate projects.

Sustainability is the most important trend for investors. They are looking for ways to invest in a socially responsible way (SRI) or to assume social responsibility as a company (CSR). In terms of content, sustainability and impact and the related environmental, social and governance (ESG) aspects and their “impact” are the recurring themes on the corporate and investor side.

The importance of Sustainability & Impact Investing is growing rapidly and continues to gain momentum. Corporations have changed their behavior over the past decades. Institutional and private investors are increasingly aligning their portfolios with climate and environmental considerations. Social criteria and issues of responsible corporate governance also play an important role.

https://www.dhirubhai.net/events/6786269965709303808/

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In this respect, the advantages of renewable energy are clear. Nuclear power has many risks, these can be avoided. The climate is protected and fewer pollutants are produced. Emissions of greenhouse gases such as carbon dioxide (CO2) and methane are reduced, the global greenhouse effect is slower, and climate change is not accelerated any further. The increasingly scarce fossil fuels such as oil, gas, coal and uranium can be optimally replaced by renewable energy sources. The energy supply of industry as well as private households can thus be maintained. The use of renewable energies and the resulting strong and diverse competitive landscape guarantee a high level of quality with a fair price-performance ratio. There are no oligopolies that can dominate and keep prices high. Inexhaustible and free energy sources - especially sun, wind, water is available in abundant quantities and can be used permanently by power plants to generate electricity or heat. Green investments also stand for more employment in the field of?alternative energies (research, development, planning and production of energy power plants). The above-mentioned advantages allow us to draw conclusions that not only the rational but also the moral compass of the investors has been?activated over the years. Investors are of paramount importance to funds as well as their managers, as without one the other cannot function. Thus, fund managers are no longer just chasing returns, they also represent values, norms and principles that the ESG approach defines as filters. With this in mind, renewable energy funds, among others, have been set up. These include stocks and/or real estate assets from the renewable?energy sector. These can be, for example: Hydrogen, plastic recycling, electric car manufacturers, wind power plants, biomass power plants, hydroelectric power plants, geothermal power plants, energy storage manufacturers and supplier?companies for manufacturers from the previously mentioned sectors. From these areas, fund managers can now create packages that are potentially interesting for investors. Thus, even in the renewable energy fund sector, there are products with high risk but also high returns, as well as solid investments designed for long-term value creation that have more moderate returns. Renewable energies will play a key role in the decarbonization of our energy systems in the coming decades.

About the XOLARIS Group

Founded in 2010, the XOLARIS Group stands with its AIFM for an independent white label investment company with a focus on Alternative Investment Funds (AIF) in the asset classes Private Equity, Real Estate, Renewable Energy and Shipping. With headquarters in Liechtenstein and subsidiaries in Germany, France, and Asia, the entire value chain of alternative investments can be represented, true to its motto: “Investment Quality — Made with Passion.”

Other units of the group offer services ranging from advice on launching, structuring and distribution to fund accounting and the administration of alternative investment funds and other real asset investments.

As a legally independent service provider for the conception, administration and management of alternative investments, the XOLARIS Group sees itself in its entirety as an “enabler” for initiators and investors.

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