Liontrust Sustainable Future Funds - Annual Review 2019 - Page 29

Affordable and clean energy (SDG #7)
Sustainable cities and communities (SDG #11)
We have two main themes aligned with achieving this SDG to ensure
access to affordable, reliable, sustainable and modern energy for all.
We have two themes aligned with achieving this SDG to make cities
and human settlements resilient and sustainable.
Increasing electricity generation from renewable sources:
Substituting coal-intensive fossil fuel electricity generation with
renewable power sources reduces carbon emissions as well as
providing a cost-effective means in some off-grid situations to connect
people to cheaper, more reliable power sources.
Improving the efficiency of energy use: We see many ways of
making energy cheaper by reducing wasted energy while also
reducing emissions through more efficient use. This cuts across
many areas of the economy and includes building insulation,
efficient lighting, energy-efficient climate control, travel and
industrial processes. Companies that provide services or equipment,
particularly in upgrading the power grid network to be able to deal
with changing production and consumption patterns of electricity, are
an important requirement to achieve affordable clean energy.
Building better cities: Shelter is a basic human requirement, and
companies that build quality affordable homes or key infrastructure
needed in cities are helping to provide this.
Making transport more efficient: Urban transport systems are
improved by reducing congestion as well as transport emissions
(which make the local air quality toxic) as the mode of transport shifts
from self-driven cars to public transport systems such as trains, tubes
and buses.
Places for people is an issuer we hold in the SF Corporate Bond
Fund. This issuer funds the provision of social housing, which is a
long-term positive for society and part of our Building better cities
investment theme.
Terraform Power is a US-based renewable electricity generation
company that operates over 4GW of wind and solar farms. This is
a significant amount of renewable generation and is helping bring
down emissions in the US. Wind and solar are becoming cheap
sources of electricity generation, and solar can now outcompete
natural gas derived from fracking – so we see this company having
a very positive impact.
Kingspan is domiciled in Ireland and specialises in products and
services that improve the efficiency of energy use in buildings. This
includes building insulation and smarter controls (for air conditioning
and heating), reducing the amount of energy wasted.
Knorr-Bremse is a German company whose products are used
around the world to make travel more efficient, safer and quieter. It
makes systems used in braking high speed trains, as well as collision
avoidance systems for commercial vehicles. Changing modes of
transport from driving a car to going on to an efficient modern train
network is estimated to be 12 times more efficient than travelling by
road and air (per passenger mile) and eight times more efficient for
freight in trucks.
Clean water and sanitation (SDG #6)
We have one theme aligned to this development goal, which
pledges to ensure the availability and sustainable management of
water and sanitation for all.
Improving the management of water: As we all know, water
is essential for life. Companies that can manage waste water
treatment, or produce products or services that improve the efficiency
of water distribution, are vital and in demand. Sanitation is a first line
of defence from disease, much of which comes from contaminated
water. We like companies that improve sanitation and give affordable
access to clean water.
Ecolab, listed in the US, is the global leader in providing customers with
technology that allows them to save key resources, particularly water
and energy, in the industrial and hospitality sectors. From restaurants
to steel mills, Ecolab’s products and technologies significantly reduce
water usage and save customers money, driving cost savings and
efficiencies. The business drives much of its sales through innovations
delivered to target specific customer needs so much of these important
resource savings are a direct result of Ecolab’s efforts.
All use of company logos, images or trademarks in this presentation are for reference
purposes only.
28 - Liontrust Sustainable Investment: Annual Review 2019
Liontrust Sustainable Investment: Annual Review 2019 - 29


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