ESG Investing
This $20 Trillion Climate Theme Is Trouncing Other Strategies
While investments in wind and solar mostly resulted in losses in 2023, fund managers who piled into this sector enjoyed double-digit returns.
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One of the dullest themes in climate investing was nevertheless one of its most profitable last year.
While investments in wind and solar mostly resulted in losses in 2023, fund managers who piled into companies tied to the electrical grids that distribute clean energy enjoyed double-digit returns. The Nasdaq Clean Edge Smart Grid Infrastructure Index ended last year up more than 20%, led by companies such as Eaton Corp., ABB Ltd. and Schneider Electric SE, compared with the more than 20% decline of the S&P Global Clean Energy Index.