Guinness Sustainable Energy Fund on Trane Technologies
Thesis
The fund owns Trane Technologies as a quality pure-play exposure to heating and cooling efficiency in buildings. The managers argue that higher power prices improve the payback from efficiency products and that tighter electrification and energy-efficiency standards provide a supportive long-term backdrop. Trane therefore provides exposure to reducing energy intensity on the demand side of the transition.
“pure-play quality exposure to heating and cooling industries”
Key risks
- High interest rates are a near-term drag on building renovation rates
- Building activity can weaken cyclically