Energy Management White Paper
Inflection Point Capital Management’s Energy Management White Paper examines the important role of energy management in determining whether a company is positioned to generate long term profits for investors.
Meeting CO2 reduction targets is likely to come from a combination of increased use of renewable energy, combined with measures that will increase the value that is generated from each unit of energy. The transition to a low carbon economy will support the development of new innovations, as climate policy collides directly with the Fourth Industrial Revolution, which is bringing forth new disruptive technologies. As investors seek to determine which of a multitude of innovations that are coming to market will truly be transformative, we believe that those that facilitate a low carbon economy will have the edge.
For investors, analysing a company’s energy management strategy is critical to understanding which companies will thrive in a volatile and disruptive world. Energy management is itself an indicator of management quality. This is because long term improvements in energy management performance can only be achieved through a real and sustained commitment. Understanding which companies are serious about reducing their CO2 emissions and maximising outputs from the energy they consume, requires analysis of a company’s overall approach to energy management.