#energy--A surge in power demand fueled by artificial intelligence, the growing energy demands of a rising middle class in emerging market economies, rising geopolitical tensions, and the push to deca...
NEWARK, N.J.: #energy--A surge in power demand fueled by artificial intelligence, the growing energy demands of a rising middle class in emerging market economies, rising geopolitical tensions, and the push to decarbonization are combining to dramatically reshape the global energy system. For investors, this new energy landscape offers both opportunities and hidden risks across a variety of sectors and asset classes, as well as wide-ranging portfolio implications, according to new research from PGIM, the $1.3 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
In “Fueling the Future: Investing Across the Global Energy Landscape,” the latest in PGIM’s Megatrends research series, 30 investment professionals from across PGIM’s fixed income, equity, real estate, and private alternatives managers lift the veil on their investment strategies amid the shift toward electrification and a low-carbon energy mix.
The research finds that despite the urgency of the Paris Climate Agreement and ambitious plans for green energy growth, the energy transition cannot happen everywhere all at once, and a simplistic strategy that divides the investment world into “brown” villains and “green” heroes will not be an effective approach to achieve environmental or fiduciary objectives.
“No source of energy and electricity is perfect,” said Shehriyar Antia, PGIM’s head of Thematic Research. “Whether an investor has decarbonization objectives or not, it’s critical they understand which companies will power us through the energy transition and which technologies may not live up to the hype.”
INVESTING IN ENABLERS OF THE ENERGY TRANSITION
Through each evolution of the energy system, legacy fuel sources have been supplemented, rather than completely replaced. Companies that supply, facilitate and adapt throughout the transition will offer the best investment opportunities:
OPPORTUNITIES ACROSS THE GLOBE
Renewables have increasingly become the first choice for new power generation around the world. However, the energy transition is playing out at different paces in different places:
“How we can meet rising global demand for energy reliably, affordably and in a way that avoids environmental harm is one of the biggest challenges of our lifetimes,” said Taimur Hyat, PGIM’s chief operating officer, “Resolving these challenges will create several important long-term investment opportunities while requiring rigorous discipline in over-hyped areas where the rhetoric exceeds the attractive and accessible investment opportunity set.”
To learn more, read the full paper “Fueling the Future: Investing Across the Global Energy Landscape,” or visit PGIM’s Megatrends microsite for additional insights for investors.
ABOUT PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (PFI). PFI has a history that dates back over 145 years and through more than 30 market cycles. With 41 offices in 19 different countries (as of March 31, 2024), our more than 1,450 investment professionals are located in key financial centers around the world.
Our firm comprises multi-managers that collaborate with each other and specialize in a particular asset class with a focused investment approach. This gives our clients diversified solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. As a leading global asset manager with $1.34 trillion in assets under management (as of March 31, 2024), PGIM is built on a foundation of strength, stability and disciplined risk management.
For more information, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
Fonte: Business Wire
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