The sense of emergency pushes Europe to reinvent its approach to energy transition. Financial players must work with and support stakeholders from all sectors to turn this huge challenge into an opportunity. As active managers with strong convictions, we accelerate our investments linked to the energy transition.
TIME FOR ACTION
The Ukraine war acts as a genuine catalyst for energy transition. Prices of fossil energy have been steadily rising since last September, leading to a global cost of living crisis. The dependence of Europe to Russian fossil energy has also lead to a desire to ensure National energy security. This trend is expected to last, forcing European countries to find alternative suppliers and to increase their use of more renewable energy sources. Europe must definitely reinvent its approach to energy.
In the meantime, the Intergovernmental Panel on Climate Change (IPCC) recently warned us that we only had up to 2025 to roll out ambitious measures to reduce greenhouse gas emissions and to limit global warming to 2 degrees.
A CLEAR RESPONSABILITY
At Edmond de Rothschild, we believe we have a clear responsibility to roll out innovative, impact strategies that seek to finance and accelerate energy transition. We realized decades ago that it was urgent to redirect our investments in real and liquid assets to ensure long-term value creation. This comes from the history of the Rothschild family who has always played a role in supporting important infrastructure projects.
Ambitious targets for 2022 are in place to continue this commitment with Edmond de Rothschild to join the Net Zero Asset Managers initiative before the end of the year.
SUSTAINABILITY IN ACTION
Stock markets, as well as private equity, real estate and infrastructure debt, have a pivotal role to play in helping us preserve our planet for future generations. Edmond de Rothschild is a European leader in sustainable finance driven by strong convictions that are translated into concrete actions. Our experts are providing solutions helping to take up the challenge of energy transition.
Ensuring our activity conforms with sustainability regulation, 84% of the assets of our open-ended funds currently comply with Articles 8 and 9 of SFDR.
In the last two years, our infrastructure debt platform, which is one of the 10 most important global players, has increased its investments in renewable energy projects from 65 %, amounting 1.3 billion euros and representing 39% of its portfolios.
Our Private Equity strategy fully dedicated to financing solutions in renewable energy production and energy efficiency has recently completed the financing and the start of the construction of the Green Valley Energie power plant in Golbey (Vosges). It will complete the portfolio of biomass cogeneration facilities to 8 plants.