The demise of coal and rise of 'new' energy

ETHICAL

Peter Michaelis, head of sustainable and responsible investments at Alliance Trust, looks at how the decline in demand for coal is boosting ‘new' energy companies' profiles.

Economies do not just move cyclically from boom to bust. They have a clear long-term tendency of improving quality of life for members of that economy. This includes maintaining a healthy and supportive environment, and therefore environmental issues can have a major impact on the success or failure of businesses. This is something which is often overlooked by investors. Nowhere is this more apparent than in the coal industry, which is facing severe headwinds from all corners of the world. The story of energy, and the decline in demand for coal, is an example of how environmental conc...