The transition from grey to green
The global energy sector is undergoing a profound transformation necessitated by today’s energy and climate emergencies. Human-induced climate change is causing widespread disruption in nature, leading to mounting loss of life and biodiversity, as well as severe economic damage. To mitigate the catastrophic impact of global warming, energy-related CO2 emissions must be reduced in accordance with the 1.5°C warming limit and the Paris Agreement goals.
Renewables will play a critical role in accelerating our transition to net zero: thanks to technological advancements, the costs of renewables have dropped dramatically, making them not only viable alternatives to conventional fuels and a powerful engine for economic growth in the coming decades, but also a means of ensuring energy security. The electrification of the energy system will play a crucial role in decarbonizing the global economy. This means that investments in storage capabilities and materials that enable the energy transition will also need to increase.
Watch Dirk Hoozemans, Portfolio Manager, as he explains what makes Energy Evolution such an attractive investment opportunity.
"Renewable power frees economies from volatile fossil fuel prices and imports, curbs energy costs, and enhances market resilience."
Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA)
Source: Renewable Power Remains Cost-Competitive amid Fossil Fuel Crisis (irena.org) Retrieved on 25.07.2022.
We believe that three powerful long-term structural growth trends will fuel the evolving energy transition:
Many low-carbon technologies, such as wind turbines or electric vehicles, require large amounts of metals and minerals. To meet the rapidly growing demand for clean energy solutions, the demand for those minerals will skyrocket: according to recent estimates, it is expected to triple by 2040.
Projected total mineral1 demand
As global power systems decarbonize, the demand for electricity is set to increase to enable a reduction in the use of technologies that emit CO2.
The share of electricity in final energy use could more than double
* Other final uses include heat, biomass, hydrogen, and other renewables.
Source: International Energy Agency (2021), Net Zero by 2050. Retrieved on 29.06.2022.
A transition to renewable energy requires significant investment in grid infrastructure. Smart grids improve reliability by providing consistent and responsive power, help reduce carbon emissions by increasing efficiency, and create savings by empowering the consumer to monitor and manage usage.
Smart grids enable structural changes in energy systems
Source: European Renewable Energies Federation et al. (2018), Energy Atlas – facts and figures about renewables in Europe. Retrieved on 29.06.2022.
The net-zero transition requires the share of renewables in the global energy mix to exceed the growth in energy demand. As the global population grows, demand for electricity – and, by the same token, for cleaner, more secure, more reliable, and more affordable energy sources – is set to boom. This is further underpinned by geopolitical developments highlighting the need for energy security. The energy transformation offers opportunities for sustained economic development, social inclusion, energy security, improved health, job creation, and other societal benefits.2
It also offers tremendous opportunities for investors with a long-term investment horizon.
The Credit Suisse (Lux) Energy Evolution Equity Fund seeks to benefit from the long-term secular growth trend of energy transition by investing in pure-play3 companies that operate along the entire energy value chain. These companies provide products and services that facilitate the evolving transition from a fossil-fuel-based system to cleaner ways of producing, storing, supplying, and consuming energy. This means that they also contribute to achieving the United Nations Sustainable Development Goals numbers 7 (Affordable and Clean Energy), 9 (Industry, Innovation, and Infrastructure), and 13 (Climate Action).
Additionally, the fund applies exclusions and integrates ESG4 considerations into the investment process following the principles of the Credit Suisse Sustainable Investment Framework.
The investment promoted in this marketing material concerns the acquisition of units or shares in a fund and not of any underlying assets. The underlying assets are owned by the fund only.
Contact us to learn about exciting investment opportunities. We are here to help you achieve your investment goals.
1 Includes chromium, copper, aluminum, battery metals (lithium, nickel, cobalt, manganese, and graphite), molybdenum, platinum group metals, zinc, rare earth elements, and others.
Source: International Energy Agency (2022), The Role of Critical Minerals in Clean Energy Transitions. Retrieved on 29.06.2022.
2 UN (2021). Theme report on energy transition: towards the achievement of SDG 7 and net-zero emissions.
3 We define a pure player as a company in which at least 50% of revenue comes from products and solutions that facilitate the energy transition.
4 ESG stands for environmental (E), social (S), and governance (G). For further information about the ESG investment criteria and the sustainability-related aspects of the fund, please consider the legal and regulatory documents of the fund (e.g. the prospectus) and visit credit-suisse.com/esg. In addition to sustainability-related aspects, the decision to invest in the fund should take into account all objectives and characteristics of the fund as described in its prospectus or in the information which is to be disclosed to investors in accordance with applicable regulations.
Risks
The full offering documentation including complete information on risks may be obtained free of charge from a Credit Suisse client advisor, representative, or, where applicable, via Fundsearch (credit-suisse.com/fundsearch).
This is a marketing communication.
Please refer to the prospectus/information document of the fund and to the KIID/KID (as applicable) before making any final investment decisions.
Source: Credit Suisse, unless otherwise specified.
Unless noted otherwise, all illustrations in this document were produced by Credit Suisse Group AG and/or its affiliates with the greatest of care and to the best of its knowledge and belief.
This material constitutes marketing material of Credit Suisse Group AG and/or its affiliates (hereafter "CS"). This material does not constitute or form part of an offer or invitation to issue or sell, or of a solicitation of an offer to subscribe or buy, any securities or other financial instruments, or enter into any other financial transaction, nor does it constitute an inducement or incitement to participate in any product, offering or investment. This marketing material is not a contractually binding document or an information document required by any legislative provision. Nothing in this material constitutes investment research or investment advice and may not be relied upon. It is not tailored to your individual circumstances, or otherwise constitutes a personal recommendation, and is not sufficient to take an investment decision. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and where legally possible does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. The information provided in this material may change after the date of this material without notice and CS has no obligation to update the information. This material may contain information that is licensed and/or protected under intellectual property rights of the licensors and property right holders. Nothing in this material shall be construed to impose any liability on the licensors or property right holders. Unauthorised copying of the information of the licensors or property right holders is strictly prohibited. The full offering documentation including, the prospectus or offering memorandum, the Key Investor Information Document (KIID), the Key Information Document (KID), the fund rules, as well as the annual and bi-annual reports ("Full offering documentation"), as the case may be, may be obtained free of charge in one of the languages listed below from the legal entity/entities indicated below and where available via Fundsearch (credit-suisse.com/fundsearch). Information on your local distributors, representatives, information agent, paying agent, if any, and your local contacts in respect of the investment product(s) can be found below. The only legally binding terms of any investment product described in this material, including risk considerations, objectives, charges and expenses are set forth in the prospectus, offering memorandum, subscription documents, fund contract and/or any other fund governing documents. For a full description of the features of the products mentioned in this material as well as a full description of the opportunities, risks, and costs associated with the respective products, please refer to the relevant underlying securities prospectuses, sales prospectuses, or other additional product documents, which we will be pleased to provide to you at any time upon request. The investment promoted in this marketing material concerns the acquisition of units or shares in a fund and not of any underlying assets. The underlying assets are owned by the fund only. This material may not be forwarded or distributed to any other person and may not be reproduced. Any forwarding, distribution or reproduction is unauthorized and may result in a violation of the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities referred to herein have not been, and will not be, registered under the Securities Act, or the securities laws of any states of the United States and, subject to certain exceptions, the securities may not be offered, pledged, sold or otherwise transferred within the United States or to, or for the benefit or account of, U.S. persons. In addition, there may be conflicts of interest with regards to the investment. In connection with the provision of services, Credit Suisse AG and/or its affiliates may pay third parties or receive from third parties, as part of their fee or otherwise, a one-time or recurring fee (e.g., issuing commissions, placement commissions or trailer fees). Prospective investors should independently and carefully assess (with their tax, legal and financial advisers) the specific risks described in available materials, and applicable legal, regulatory, credit, tax and accounting consequences prior to making any investment decision. The alternative investment fund manager or the (UCITS) management company, as applicable, may decide to terminate local arrangements for the marketing of the shares/units of a fund, including terminating registrations or notifications with the local supervisory authority. A summary of investor rights for investing into European Economic Area domiciled investment funds managed or sponsored by Credit Suisse Asset Management can be obtained in English via www.credit-suisse.com/am/regulatory-information, local laws relating to investor rights may apply.
Copyright © 2023 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.
Representative: Credit Suisse Funds AG1, Uetlibergstrasse 231, CH-8070 Zurich I Paying Agent, Distributor: Credit Suisse (Switzerland) Ltd., Paradeplatz 8, CH-8001 Zurich I Distributor: Credit Suisse AG, Paradeplatz 8, CH-8001 Zurich I Distributor: Credit Suisse Asset Management (Switzerland) Ltd., Kalandergasse 4, CH-8045 Zurich I Language versions available: German, English, French, and/or Italian I Supervisor (Entity of Registration): Swiss Financial Market Supervisory Authority (FINMA)
1 Legal entity, from which the full offering documentation, the key investor information document (KIID), the fund rules, as well as the annual and bi-annual reports, if any, may be obtained free of charge.
