Renewables top investors’ wish list for 2020

Written by Lori Campbell on 18th Dec 2019

UK investors have put renewable energy at the top of their wish list for 2020, according to a new study.

Capitalising on the rise of clean energy is the main priority for investors in the UK across all age groups, with nearly one in three (30 per cent) intending to invest in the sector next year.

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The findings reflect mounting public concern over climate change, with businesses that have the strongest strategies for tackling the issue likely to see the most financial success. Will Rhind, founder and CEO of investment firm GraniteShares, which commissioned the research, said: “The focus on renewable energy reflects concern over one of the biggest issues that the planet faces today.”

The survey of 1,560 investors asked which sector offered the best long-term gains over the year ahead. Renewable energy came out on top ahead of technology stocks, gold and property.

Renewable energy is now the most popular investment choice for investors of all ages and is equally popular among men (29 per cent) and women (31 per cent). It also transcends investor groups, with active traders and those wanting to make an opportune gain placing as much emphasis on renewables as those who choose to only invest ethically (33 per cent and 36 per cent respectively).

The sectors UK investors would put their money into if they were looking to make a long-term gain over the next year (by age group):

 

Investment sector Total 25-34 35-44 45-54 55-64 65+
Renewable energy 30% 31% 26% 33% 35% 33%
Technology 28% 31% 22% 32% 30% 29%
Property 25% 21% 31% 26% 33% 28%
Gold 22% 23% 21% 26% 27% 10%
Biotechnology 19% 20% 16% 18% 23% 22%
Pharmaceuticals 19% 16% 17% 22% 36% 25%
Cannabis 17% 16% 17% 20% 18% 14%
Oil and Gas 14% 17% 15% 11% 10% 15%
Banks and Insurance 14% 14% 13% 9% 13% 11%
Crypto-Currency 13% 20% 14% 11% 3% 5%
E-Commerce 12% 14% 10% 9% 15% 6%
Utilities 11% 11% 12% 10% 10% 7%
Mining 9% 12% 4% 8% 7% 11%
Retail 8% 10% 8% 5% 3% 5%
Industrials 8% 9% 3% 6% 6% 7%
Auto Industry 7% 9% 10% 4% 7% 4%

 

The findings follow a recent report which revealed that the most planet-friendly businesses are set to see a rise of 33 per cent in their value due to new climate change policies.

The forecast, commissioned by the UN-backed Principles for Responsible Investment (PRI), predicted that the world’s largest listed coal companies could fall in value by 44 per cent while the 10 biggest firms in oil and gas could lose 31 per cent of their current value. Electric utilities with the strongest strategy for renewables could see values increase by 104 per cent, while laggards could see them fall by two-thirds.

For what to look for in renewables investments, check out out our three-part series ‘How to invest in renewable energy’