166. Green Equities Performance: Core vs Periphery - Jan 2025

For the first episode of 2025, Gerard and Laurent have the pleasure of welcoming Shanu Mathew. Shanu is a Senior Vice President at Lazard Asset Management and Portfolio Manager/Analyst on US Sustainable Equity.  

We are going to analyse the performance of “Cleantech” Equities throughout 2024 and discuss what to expect for 2025. Let’s be honest: 2024 was an annus horribilis for “Core” Cleantech with major indices (S&P Global Clean Energy Index) down 20%. But 2024 was also an exceptional year for “Periphery” (or adjacent) Cleantech with companies like Siemens Energy and GE Vernova being star performers.

Why such a divergence between “Core” and “Periphery”? What fundamentals are sustaining such trends? Beside interest rates, political uncertainties, competition of China, there are some green shoots that certain segments have better captured than others.

And of course, we are talking about load growth and the rise of datacenters. A rising tide lift all boats, and Core Cleantech having been so much slaughtered in recent years due to past excesses, we foresee a positive rebalancing in 2025.

Overall, a very vast panorama of how the market values the future of the Energy Transition.