Renewable Energy Provides Opportunities to SNK Capital Trust
SNK Capital Trust thinks that the way investors value companies is changing into a model that takes into account sales, profits and dividends but also long-term environmental and social costs. Phrases like “going green”, “eco-friendly” and “sustainable practices” are now much more than just buzzwords to investors.
Alternative fuels and sustainable energy sources are getting a helping hand from governments via subsidies, tax breaks and social goodwill. This progressive space is also seeing massive inflows of institutional and venture capital, as worldwide funding grew more than 65% during 2006 according to a report from the United Nations Environment Programme.
Companies will soon discover that there are economic benefits to raising their energy efficiency and lowering their GHG through increasing efficiencies in the supply chain, the value chain and manufacturing operations. SNK Capital Trust sees that the companies that show leadership here will be those that have strong corporate administration policies. Studies conducted by consulting group McKinsey on the S&P 500 have shown that these companies tend to outperform the broad market over extended time period.
Some companies, like SNK Capital Trustwill be leading the charge (whether for image or substance) even doing things aren’t immediately profitable in the short term; others will be happy to wait on the sidelines until they are driven to change, either through taxation or regulation. When the future inevitably becomes the here and now, companies who arrive late to the game not only risk higher than anticipated costs, they also risk falling behind their competitors in knowledge and shareholder image.
