Renewable Energy Demand

How can investors be players in renewable energy without investing in energy companies?

Monday, July 22, 2019

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Investments as Drivers of Renewable Energy

INVESTMENTS AS DRIVERS OF RENEWABLE ENERGY

  • How can investors be players in renewable energy without investing in energy companies?

  • We view many of our holdings as influential players in the move to a lower-carbon future—even though they don’t produce renewable energy for the market.

  • These companies are generating renewable energy for their own use, committing to renewable energy use targets, and increasing the demand for renewable energy.


chart:US electricity generation form renewables surpasses coal

April was a watershed moment for renewables in US power generation, but how can investors be players in renewable energy without investing in energy companies?

Many of the companies in our portfolios are influential players in the move to a lower-carbon future— even though they don’t produce renewable energy for the market. They do this by generating renewable energy for their own use, by committing to renewable energy use targets, and by increasing the demand for renewable energy.

As we head into a carbon-constrained future, Miller/Howard believes that the future profitability of a company may depend in part on its ability to manage its energy needs through efficiencies and lower-carbon sourcing. Decreasing emissions, likewise, strengthens the company’s role in a more sustainable future.

The charts to the right show the percentage of assets in our Infrastructure and Income-Equity Strategy (as of March 31, 2019) that rely on renewable energy. Companies that purchase or generate renewable energy for their own use—think solar panels on top of box stores or pipeline metering stations operating on 100% solar power—as well as those that generate renewable energy are important parts of the low-carbon transition and support future sustainability.

Increasingly, investors are demanding actions aligned with a sustainable future. As a result, we see more companies from seemingly unexpected sectors pivoting toward a lower-carbon future, driving demand for renewable energy. Commendably, some of the companies we invest in are setting public goals for carbon neutrality in the next few years!











chart:percentage of renewable energy in miller howard strategies

Nicole Lee provides ESG research and support to the investment team and operational leadership within the ESG team. She also writes the firm's biannual Shareholder Advocacy News. Nicole worked for several years as a clinic coordinator and educator for a nonprofit health organization, during which time she also developed and conducted training programs at two local universities. She received her BS in Sociology from Southern Utah University, and studied Public Health at Westminster College.

© 2019 Miller/Howard Investments, Inc.

Investment products: are not FDIC insured - May lose value - Are not bank guaranteed

Opinions and estimates offered constitute Miller/Howard Investments' judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. All investments carry a certain degree of risk, including possible loss of principal. It is important to note that there are risks inherent in any investment and there can be no assurance that any asset class will provide positive performance over any period of time. The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass.

Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer’s board of directors, and the amount of any dividend may vary over time. Dividend yield is one component of performance and should not be the only consideration for investment.

The information above is from sources deemed to be reliable and is provided strictly for the convenience of our investors and their advisors. These materials are solely informational. Legal, accounting and tax restrictions, transaction costs, and changes to any assumptions may significantly affect the economics of any transaction. The information and analyses contained herein are not intended as tax, legal, or investment advice and may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal, investment, or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability. Any investment returns — past, hypothetical, or otherwise — are not indicative of future performance. Investment Decisions: Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment discipline, or investment manager based on performance alone. Consider, in addition to performance results, other relevant information about each investment manager, as well as matters such as your investment objectives, risk tolerance, and investment time horizon.

Past performance does not guarantee future results.

DISCLOSURE

Investment products: are not FDIC insured - May lose value - Are not bank guaranteed

Opinions and estimates offered constitute Miller/Howard Investments' judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. All investments carry a certain degree of risk, including possible loss of principal. It is important to note that there are risks inherent in any investment and there can be no assurance that any asset class will provide positive performance over any period of time. The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass.

Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer’s board of directors, and the amount of any dividend may vary over time. Dividend yield is one component of performance and should not be the only consideration for investment.

The information above is from sources deemed to be reliable and is provided strictly for the convenience of our investors and their advisors. These materials are solely informational. Legal, accounting and tax restrictions, transaction costs, and changes to any assumptions may significantly affect the economics of any transaction. The information and analyses contained herein are not intended as tax, legal, or investment advice and may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal, investment, or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability. Any investment returns — past, hypothetical, or otherwise — are not indicative of future performance. Investment Decisions: Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment discipline, or investment manager based on performance alone. Consider, in addition to performance results, other relevant information about each investment manager, as well as matters such as your investment objectives, risk tolerance, and investment time horizon.

Past performance does not guarantee future results.