AUM in Action

Investors Engaged on Energy Transition

Over half of investors globally believe they can significantly influence energy transition progress through their strategies, according to investment manager Nuveen’s fourth annual EQuilibrium institutional investor survey. Fifty-seven percent of the 800 surveyed institutional investors – who collectively manage US$18 trillion in assets – said they had or were seeking exposure to alternative energies including renewables, nuclear and hydrogen, while 51% were interested in allocating capital to new infrastructure projects, including energy and battery storage. Ninety percent of investors were also focused on the energy transition in some way. In addition, corporate pension funds based in the Asia-Pacific region displayed an above-average interest in nature-based solutions, while German pension funds showed a higher-than-average interest in carbon credit markets. “Investors clearly understand their influence and see government policy and technical innovation as the biggest tailwinds for investments in the energy transition for the year ahead,” said Mike Perry, Head of Nuveen’s Global Client Group. “Thirty-nine percent consider politicisation to be the biggest headwind, highlighting the importance of partnering with active managers who have robust experience sourcing and navigating the most active opportunities.”

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