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World Environment Day

06/22 GIB Asset Management By Bhavin Siyani, CFA

5 June marked the celebration of World Environment Day. In reflection of this year’s World Environment Day campaign, #OnlyOneEarth, we highlight the innovative solutions tackling pressing environmental challenges.

The celebration of World Environment Day calls for collective, transformative action on a global scale to protect and restore our planet. In order to do so, we must address the triple planetary emergency that we are facing: global climates are warming too quickly for people and nature to adapt; habitats are being lost and species are threatened with extinction; and pollution continues to poison our air, land and water. The way out of this dilemma is to transform our economies and societies to make them inclusive, fair and more connected with nature. We must shift from harming the planet to healing it.

Challenge: The world is not currently on a pathway that is consistent with the Intergovernmental Panel on Climate Change’s (IPCC) analysis. The latest report from the IPCC insists that in order to limit global warming to 1.5°C, all countries must reduce fossil fuel use substantially, extend access to electricity, improve energy efficiency, and increase the use of alternative energy. The IPCC continues to stress that global GHG emissions need to peak before 2025 at the latest, and be reduced by 43% by 2030, in order to limit global warming to a 1.5°C target.[1]

Solution: With the power sector accounting for around 40% of global energy-related carbon emissions, making it carbon free will be critical to mitigating climate change. The Sustainable World team at GIB Asset Management believes that the enablers, and subsequent leaders, will be companies that accelerate the transition to cleaner energy sources. This includes, but is not limited to, renewable equipment providers, power infrastructure, hydrogen-based businesses and renewable energy enables and advancers. The good news is the solutions and the technology exist and are increasingly affordable.

GIB Asset Management discussed this topic in Davos at the World Economic Forum. On a panel titled “New Energy Economies: Learning from Today’s Challenges”, our CEO, Katherine Garrett-Cox, spoke about investing in reducing the costs of renewables, in companies that have a leading advantage over others, in terms of technology and expertise in the transition to clean energy, and engaging with them supportively to improve their operational impact.

Enphase, a holding within our Sustainable World Strategy, ticks those boxes. Enphase Energy is a leading supplier of microinverters and storage systems for solar energy. Its semiconductor-based microinverter system converts energy at the individual solar module level and brings a system-based high-technology approach to solar energy generation, storage, control, and management – giving back control to customers and facilitating the creation of integrated, electrified homes. Through connecting solar to storage, smart energy products and real time monitoring, Enphase products are estimated to have offset over 20.8 million metric tons of CO2e, equivalent to providing 3.5 million homes with electricity for one year.[2]

On World Environment Day, it is clear that truly transformative options towards sustainability need to be more readily available, affordable and attractive for people to make better daily decisions. Areas for transformation include: how we build and live in our homes, cities and places of work; how and where our money is invested; and reducing the barriers to let more people partake in the transition to a sustainable world. We believe that Enphase’s products are driving forward adoption and solving our greatest challenges. As we assess the difficulties of the current environmental crisis, and the challenges that lie ahead, we look for companies that can provide solutions and positively impact our world. It is the ethos of our strategy and of Enphase.[3]

Disclaimer: This content should not be construed as advice for investment in any product or security mentioned. Examples of stocks are provided for general information only to demonstrate our investment philosophy. Observations and views of GIB UK may change at any time without notice. Information and opinions presented in this document have been obtained or derived from sources believed by GIB UK to be reliable, but GIB UK makes no representation as to their accuracy or completeness.




Bhavin 2

Bhavin Siyani, CFA

Global Equity Analyst

Bhavin is a Global Equity Analyst at GIB Asset Management. He is responsible for contributing to the research and analysis in the design and implementation of new and existing sustainable strategies. Prior to joining GIB Asset Management, he worked at ICBC Standard Bank focusing on emerging markets and before that at State Street Global Advisors.

Bhavin graduated from the London School of Economics and Political Science (LSE) with a BSc Honours degree in Economics.

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