Disclaimer: Views in this blog do not promote, and are not directly connected to any L&G product or service. Views are from a range of L&G investment professionals, may be specific to an author’s particular investment region or desk, and do not necessarily reflect the views of L&G. For investment professionals only.
Signal failure
An energy transition is happening – but are investors aware?
Investors today are operating in an environment rife with misunderstandings about the energy transition, and may risk missing out on the opportunities it is likely to create.
Following our latest climate scenario research, we are concerned that two fundamental misunderstandings have developed in market narratives:
- that the energy transition has stalled or even died, and
- that the amount of uncertainty around this topic means long-term analysis has little merit
We believe that these misunderstandings underpin a potential market failure: too great a focus on short-term returns over long-term capital allocation to the energy transition. Our research tells us that the question is 'when' not 'if' an energy transition will happen. We believe maintaining a long-term perspective can help investors safeguard capital and seize the associated opportunities.
Read the full whitepaper to discover more
Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested.
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