The Investment Advisor will consider sustainable energy infrastructure investments that have a high impact value and align with the United Nations Sustainable Development Goals.
The SDGs are the blueprint for the Company’s sustainability-focused investment strategy. The 17 SDGs were adopted by all UN Member States in 2015, and together they address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice. The 17 SDGs are all interconnected and the UN Member States committed in 2015 to "leave no-one behind" and implement fully the 2030 Agenda for Sustainable Development. (source - The United Nations Website).
Energy sector relevant SDGs as interpreted by the International Energy Agency (IEA)
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Victory Hill Capital Advisors choice of SDGs that relate to capital investment in infrastructure
Victory Hill has distilled these core 6 SDGs into four “pathways” which constitute its investment themes.
VH GSEO investment pathways
Addressing Climate Change
The issue of Addressing Climate Change constitutes just one of the 17 SDGs, albeit it is clearly the challenge of our time. A key part of this challenge is the global community’s ability to reduce greenhouse gas (“GHG”) emissions in key facets of global economies, and the daily lives of people.
Energy Access
Energy is vital for our quality of life but unfortunately not all people in the global community can afford the costs or even have access to it. According to the UN, 800 million people are without electricity or power, and 3bn people have no access to clean fuels for cooking.
Energy Efficiency
Energy efficiency means using less energy to perform the same task and, by doing so, eliminating energy waste. It therefore results in several significant benefits. Energy efficiency reduces GHGs, and reduces demand for energy imports into domestic markets, thereby lowering the cost of energy to households and the economy overall. For example, if a house is insulated, less energy is used in heating and cooling to achieve a satisfactory temperature. Energy efficiency at a household and localised level can be achieved through the utilisation of more efficient technology or processes. Energy efficiency may also be achieved at the grid and national levels through investment in some of the following areas, which the Company may consider as part of its investment focus: Electricity Interconnectors, Grid Resilience and Frequency Response, and Investment in ageing grid systems which were developed as one-way transmission systems.
Market Liberalisation
Market Liberalisation, SDG 7, speaks of ensuring universal access to affordable, reliable and modern energy supply. The liberalisation of energy markets is the first stage in the development and modernization process of an energy market.
Broadly speaking, energy market liberalisation aims to (i) facilitate the reduction of state-ownership of key energy infrastructure and sources of energy production and supply, (ii) allow for competition and choice across the energy value chain and (iii) facilitate the participation of private investors and capital. The goals of liberalisation are typically favourable to consumers as competition helps drive down household energy costs.
We support & and are signatories of
Market Liberalisation
The liberalisation of energy markets