With kick-off for the Euro semi-finals hours away, Randeep Somel, manager of the M&G Climate Solutions Fund, analyses the nation that has come out on top so far this year – from economic data, vaccine roll-outs and the leading ‘sustainable impact players’, and who are the economic winners
GDP Growth: 2020: - 10.8%; 2021e: +5.9% 2022e: +6.8%Unemployment rate 2021: 15.7%Debt/GDP: 120%Covid-19 vaccination doses administered per 100 of the population: 89.89
GHG emissions per capita: 7.5tSustainability impact player: Acciona Energias CO2 saved/avoided per year by Acciona Energias: 13.1mt(equal to 4.4mt of waste recycled instead of landfilled).
Goals Scored: 12Goals Conceded: 5Possession: 67.2%Clean Sheets: 2
Spain’s sustainability impact player, Acciona EnergiasAcciona Energias recently listed (late entry!) in Spain as a 100% renewable energy utility. It has exposure to both solar and wind power generation. With assets in Southern Europe and the Americas.Installed capacity of 11GW in 2020, rising rapidly to 10GW by 2025 and 30GW by 2030. Acciona is also investing in green hydrogen for hard to electrify activities in order to help reach net zero emission targets.
GDP Growth: 2020: -8.9%; 2021e: +4.5%; 2022e: +4.4%Unemployment rate 2021: 10.2%Debt/GDP: 158%Covid-19 vaccination doses administered per 100 of the population: 86.19
GHG emissions per capita: 7.3tSustainability impact player: Enel CO2 saved/avoided per year by Enel: 74.8mt per year (three times the emissions of London per year).*Enel also has significant negative emissions from fossil fuel power generation.
Goals Scored: 11Goals Conceded: 2Possession: 55.8%Clean Sheets: 3Italy’s sustainability impact player: Enel Enel is an Italian listed utility with global assets and scale. It has been shifting away from fossil fuel power generation towards renewable assets. It is power generation portfolio is now 54% renewable and continues to increase as its grow renewables and phases out legacy assets.
Enel is also investing in charging points for electric vehicles, fibre deployment, sustainable street lighting and energy storage.
GDP Growth: 2020: -9.9%; 2021e: +6.8%; 2022e: +5.1%Unemployment rate 2021: 4.7%Debt/GDP: 112%Covid-19 vaccination doses administered per 100 of the population: 114.76
GHG emissions per capita: 7.5tSustainability impact player: DS Smith CO2 saved/avoided per year by DS Smith: 3mt per year (equal to half a million homes electricity in one year).
Goals Scored: 8Goals Conceded: 0 Possession: 53.4%Clean Sheets: 5
England’s sustainability impact player, DS Smith DS Smith is a leader in sustainable packaging, demonstrating the potential of closed-loop recycling – a process whereby waste is collected, recycled, then re-used to make the same product. By using recycled materials in its corrugated boxes, M&G estimates that the UK company saves 55 million trees a year from being cut down.Their main customer is internet retail giant Amazon, which gives DS Smith’s operations huge scale and impact.
GDP Growth: 2020: -2.7%; 2021e: +2.9%; 2022e: +3.5%Unemployment rate 2021: 5.5%Debt/GDP: 42.2%Covid-19 vaccination doses administered per 100 of the population: 85.36
GHG emissions per capita: 8.2tSustainability impact player: OrstedCO2 saved/avoided per year by Orsted: 11.2mt (equal to taking 2.4m petrol cars of the road per year).
Goals Scored: 11Goals Conceded: 5Possession: 54.2%Clean Sheets: 1
Denmark’s sustainability impact player: Orsted Ørsted is a leader in offshore wind power, having built more offshore wind farms than any company worldwide. By replacing fossil fuels with electricity harnessed from the wind, the Danish company aims to be carbon neutral by 2025.Orsted has a very strong land bank which forms the basis of its growth platform going forward. It is installed capacity is set to double in the next five years.
Economic winner: Denmark
Denmark has weathered the economic impact of the Covid-19 pandemic the best of the semi-finalists. Its average growth rate (2020-2022) is the highest, also coming in second on unemployment rates after the UK.
These two countries are also first and second when it comes to debt/GDP ratios. While the Spanish and Italian debt rates look very high.
The UK has the lowest unemployment rate of the four countries and also the most flexible economy. Post the economic crises (2008-2009), the UK economy recovered the fastest in Europe.
Brexit uncertainty has also had a negative impact on the UK economy for the past 5 years. With a trade deal in place, businesses should gain more confidence to invest going forward and help the economic resurgence.
Vaccination winner: England (UK)
The UK, Italian and Spanish populations will particularly hard hit from coronavirus, in turn these economies had to bring in the most stringent lock down rules. Denmark adopted a lighter touch approach.
The UK has administered the most vaccines of the four countries. It means it should be in better shape going into the autumn/winter period and take the plaudits here for a commendable vaccine performance.
Decarbonisation winner: Italy
Italy currently has the lowest carbon emissions per capita of the semi-finalists and are worthy winners on this measure. Denmark has the highest share of renewables in the energy mix at 30% of the four semi-finalists, the UK has the lowest at 15%.
Plug-in electric vehicles sales made up 16.4% share in 2020 for Denmark, followed by UK (10.7%); Spain (4.8%); Italy (4.3%).
The Euros winner: England!
With kick-off for the Euro semi-finals hours away, Randeep Somel, manager of the M&G Climate Solutions Fund, analyses the nation that has come out on top so far this year
Somel looks at economic data, vaccine roll-outs and the leading ‘sustainable impact players', and who are the economic winners