Energy pioneer Alfen is paving the way for electric vehicles and renewable energy

Regnan’s Global Equity Impact Solutions Fund invests in mission-driven companies we believe are well placed to solve the world’s biggest problems.

This is the story of one of those companies, Dutch energy pioneer ALFEN.

 

THE RISE of renewable energy is one reason for hope in the battle against climate change.

Electric vehicles — and their gradual replacement of cars powered by internal combustion engines — is an important part of this story.

Transport accounts for 14 per cent of global greenhouse emissions. Electric vehicles also reduce pollution which triggers health problems and premature deaths.

However, the transition to renewable energy poses new challenges.

For example, the grid infrastructure finds it difficult to deal with renewable energy because most of it comes from intermittent sources.

Also, many countries lack sufficient charging points for electric vehicles.

An energy pioneer with new solutions

Regnan’s impact investment team aims to outperform the broad global equity market over the long term by investing in companies that provide solutions for the world’s growing sustainability needs.

One of those companies is Netherlands-based Alfen which has a long history of developing market-leading products based on its expertise in electricity.

The Dutch energy pioneer has a central role in the energy grid as a builder of transformer substations, energy storage systems, electric vehicle charging stations and other products and services.

The business invested early in electric vehicle charging (from 2008) and energy storage (2011), and has now built a competitive advantage in these fields.

Alfen’s transformer substations provide millions of households and companies with energy, while thousands of electric vehicles make daily use of its charging stations.

How Alfen solves energy problems

Alfen makes storage systems that solve the problem of intermittency. This allows power produced by renewable energy to be saved until electricity consumers need it.

This also makes the electricity grid more stable by reducing the unpredictability and volatility of total power generation.

It’s a huge market. Some €40 billion ($A65 billion) must be invested into the grid across Europe in coming years to keep pace with renewables expansion, according to the European Commission.

Alfen also makes charging points for electric vehicles, which will greatly boost their use.

Over the next decade Europe will need to spend €20 billion annually on public charging points to decarbonise road transport, the European Federation for Transport and the Environment estimates.

Alfen helps solve the world’s biggest problems

Regnan identifies companies such as Alfen using the 17 United Nations Sustainable Development Goals (SDGs) and their 169 underlying targets as an investment lens.

The SDGs are a 15-year plan to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere.

In 2019 the UN called for “a decade of ambitious action to deliver the goals by 2030.

“Evidence shows that investing in the SDGs makes economic sense, with estimates highlighting that achieving the SDGs could open up US$12 trillion of market opportunities and create 380 million new jobs,” the UN says.

Drawing on the SDGs and their targets, Regnan’s investment team has built a comprehensive, proprietary investment framework – the Regnan SDG Taxonomy.

Alfen’s activities are linked to two SDG targets for 2030:

  • SDG target 7.2: Substantially increase the share of renewable energy in the global energy mix
  • SDG target 11.2: Provide access to safe, affordable, accessible and sustainable transport systems for all

 


Find out more

Regnan is a responsible investment leader with a long and proud history of providing insight and advice to investors with an interest in long-term, broad-based or values-aligned performance.

For more than 20 years our pioneering analysis has changed the way investors and businesses think about value creation and their wider responsibilities to society.

Building on that expertise, in 2019 Regnan expanded into responsible investment funds management, backed by the considerable resources of Pendal Group.

The Regnan Global Equity Impact Solutions Fund invests in mission-driven companies we believe are well placed to solve the world’s biggest problems.

Managed by a four-person investment team based in London, the fund aims to outperform the broad global equity market over the long term by investing in companies that provide solutions for the growing, unmet sustainability needs of society and the environment.

Regnan Global Equity Impact Solutions Fund is distributed in Australia by Pendal and in the UK and Europe by J O Hambro.

Australian investors: Contact Jeremy Dean at Jeremy.Dean@Regnan.com

Information for UK, European and other international investors: www.regnan-johcm.com

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