Identifying renewable leader
Utility companies are becoming increasingly focused in their pursuit of decarbonisation. On a recent visit to one of the innovation hubs of an Italian utility company, our analyst saw an innovative company that he considered materially different from the market’s general perception. The company is typically treated as a sprawling, complex machine, exposed to Italy’s macro risks. However, our analyst’s impression was that “the company’s innovation efforts to reduce costs, increase safety and drive revenue opportunities could open up a significant competitive wedge against other utilities unable to innovate at scale.” Innovative projects he noted ranged from “heterojunction bifacial” solar panels that capture 30% more solar energy, to customised, inflatable motorcycle jackets for line-workers, which are equipped with technology to detect falls.
By devoting significant resources to on-the-ground research, our analysts can gather material ESG information without relying on external data providers, while linking it to the business case.