iClima Earth : “The Russian invasion of Ukraine adds tremendous uncertainty to a market that was already struggling to price in widespread views on further inflation, interest rate increases in the US. Markets are now pricing in consequences of the invasion and the sanctions being imposed, which ECB already estimate could cost a EU GDP reduction in the year around 0.7%.
Gabriela Herculano, CEO of iClima Earth
“The 2nd and 3rd round of sanctions may have an impact on exports from Russia, via restrictions in the payment system for payments of the commodities. The conflict obviously exacerbates the EU energy crisis, also because Germany put Nord Stream 2 pipeline with Gazprom on hold indefinitely. What can be done in the short term? The only short term solution is energy efficiency. It is to reduce consumption whenever possible. Companies like Ameresco (AMRC), a $2.67 billion market cap with over 20 years of experience in energy efficiency solutions targeting UK and North America (down ca. 50% from its 52 week peak), Acuity Brands (AYI) a leader in lighting and LED solutions, a $6.3 billion market cap Atlanta based company now trading at 1.8x P/S, and of course companies in the smart thermostat space like Resideo Technologies (REZI), a $3.5 billion market cap trading at a TTM P/S of 0.65.
What we expect to see in the short term is the acceleration of the energy transition. German’s new government announced early this year a target of 10 GW of new wind to be built per year. The only safe space to be in the turbulent time is in green growth. We need a comprehensive set of solutions that can decarbonize the planet and move us away from the fossil fuel dependence.”
Source: ETFWorld
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