After a stellar 2020, renewable energy stocks have fallen this year, down nearly 30% relative to their high in the second week of January. Toppy valuations and investor concerns about inflation and a possible rise in interest rates have contributed to this decline, but many of the factors which prompted corporates and asset managers to add green assets to their portfolio and drove the index to highs last year remain in place. Governments around the world continue to pursue ‘net zero’ goals. Demand for ESG and sustainable products continues to grow. New financial reporting rules have come into place, such as those in the UK which require large asset managers and premium-listed firms to report climate-related risks following TCFD recommendations. It would not be a surprise if the World Renewable Energy Index started climbing again soon.
Refresh this chart in your browser | Edit the chart in Datastream
Join a growing community of asset managers and stay up to date with the latest research from Refinitiv and partners to help you inform your investment decisions. Follow our Asset Management LinkedIn showcase page.
________________________________________________________________________________________
Refinitiv Datastream
Financial time series database which allows you to identify and examine trends, generate and test ideas and develop view points on the market.
Refinitiv offers the world’s most comprehensive historical database for numerical macroeconomic and cross-asset financial data which started in the 1950s and has grown into an indispensable resource for financial professionals. Find out more.
