Guinness Sustainable Energy Fund on Atlas Copco
Thesis
The fund owns Atlas Copco for exposure to industrial energy efficiency. Its compressors and vacuum technologies help manufacturers use compressed air more efficiently, an area the managers describe as the fourth utility. With higher power prices improving the economics of efficiency investment and industrial activity beginning to inflect, the fund sees a supportive backdrop for this type of equipment.
“Atlas Copco offers exposure to the efficient use of air”
Key risks
- Industrial activity can weaken
- Capital expenditure can be delayed when financing conditions tighten