TRILLIUM’S APPROACH TO INVESTING IN ENERGY AND POWER
Trillium uses forward-looking analysis to help identify Energy and Utilities companies that are best positioned to lead the ongoing energy transition and succeed in a low-carbon economy.
We look to invest in companies with a business model designed to succeed in a low-carbon economy. At the same time, we avoid investing in companies with the greatest transition risks, namely fossil fuel companies without a transition plan we find credible. We apply this framework to companies in the Energy and Utilities sectors (excluding Utilities companies without power generation), as well as any company deriving 50% or more of revenue from sales to Energy or Utilities companies (excluding Utilities companies without power generation). At a minimum, to be considered for investment, these companies must derive at least 10% current revenue from renewable energy or enabling technology and have no commitments to invest in new fossil fuel exploration, production, storage, transport (excluding distribution), trading, or refining capacity, or new fossil fuel-based power generation without emissions capture.
Further characteristics of a credible transition plan could include:
- A higher projected or historical revenue growth rate from renewable energy or enabling technology, as compared to fossil fuel-based revenue;
- Capex plan showing spending on renewable energy or enabling technology;
- Regulatory permit approval for new renewable energy or related projects; or
- Approved Science Based Targets for greenhouse gas emission reduction or time-bound commitment to set Science Based Targets.
Learn More: Trillium's Investment Approach to Investing in Energy and Utilities