Our investment strategy combines data and ESG factors for alpha (generating returns). In our whitepaper Polluters pay in the end we will outline how we use our framework to distinguish the “winners” from the “losers” in the energy transition. We focus on the largest CO2 emitting sector, utilities, and on the direct impact on each company’s valuation.

The winners will be those companies which decarbonise the fastest and hence minimize the impact of carbon emissions pricing schemes. The losers will be those that decarbonise the slowest and hence will be most exposed to these costs. To distinguish between the latter and the former, we forecast carbon emissions and carbon costs, and use the results to attribute an ESG score to these companies, which is used in our valuation process alongside our discounted cash flow models. 

Download the whitepaper Polluters pay in the end on our website. 

Disclaimer

Van Lanschot Kempen Investment Management NV (VLK Investment Management) is licensed as a manager of various UCITS and AIFs and authorised to provide investment services and as such is subject to supervision by the Netherlands Authority for the Financial Markets. This document is for information purposes only and provides insufficient information for an investment decision. This document does not contain investment advice, no investment recommendation, no research, or an invitation to buy or sell any financial instruments, and should not be interpreted as such. The opinions expressed in this document are our opinions and views as of such date only. These may be subject to change at any given time, without prior notice. 

Van Lanschot Kempen Investment Management NV, Beethovenstraat 300, 1088 WZ Amsterdam, The Netherlands