Road transport, which accounts for about 75 percent of emissions in the transport sector, has become an important focus for decarbonization, and electric vehicles (EVs) are expected to be a key part of the solution.
Peter Meany, head of global listed infrastructure at First Sentier Investors, and Kate Turner, deputy head of responsible investment, recently published a paper outlining a number of ways to gain exposure to the EV theme, such as investing in lithium producers that power EV batteries, or the vehicle manufacturers themselves.
According to Meany and Turner, most governments around the world recognize the need to accelerate uptake of EVs to address the climate impacts of transport. Although EVs account for only around 9 percent of vehicle sales globally, European policies have been particularly supportive, with the region’s largest car manufacturer, Volkswagen Group, expecting electric vehicles to represent 70 percent of sales by 2030 and