AI, the energy transition and the case for a broader investment perspective

We believe AI is a transformational trend, but not the only one. 

Do you see the massive energy demand of the AI boom as a threat to net-zero alignments, or as a massive catalyst for new clean energy infrastructure?

AI is clearly creating additional pressure on electricity systems and on corporate net-zero targets but I believe it’s also a powerful catalyst for new clean energy infrastructures.

Data-center electricity demand is expected to almost double by 2030, and importantly, not all of that incremental power will initially be clean. Renewables will, according to IEA estimates, meet nearly half of the additional demand through 2030, but gas and coal will still contribute more than forty percent. So there is a real transition risk.

This surge in energy demand makes electricity availability a strategic issue, accelerating not only the need for renewables, but also storage, grids, transmission and electrical equipment.

But there is a second-order effect: AI itself can help optimize grids, industrial processes and energy efficiency. So the question is not whether AI consumes a lot of energy. It does. The real question is whether this unprecedented increase in power demand is used to accelerate the build-out of a cleaner, more resilient energy system.

How do you respond to those who believe there is no alternative to AI in the equity markets?

We believe AI is a transformational trend, but not the only one.

AI has dominated the market over the recent years, with a relatively small number of companies driving a disproportionate share of market returns.

First, we diversify within AI. We are looking beyond the initial infrastructure build-out toward the next phase of beneficiaries—companies in software, cybersecurity, and cloud infrastructure; companies that are actively adopting AI to boost productivity.

And second, we look beyond AI. Where we see equally as powerful long-term structural trends driving growth, such as electrification, energy security, and healthcare innovation.

So, our objective is not to choose between AI and everything else. It is to capture the potential of AI, without letting a transformational theme turn into a transformational concentration risk.

Which sector exposures have recently paid off?

Technology and AI have clearly remained key performance drivers, but what has been particularly interesting recently is the broadening of that opportunity.

While the first phase of the AI cycle was predominantly about hardware, we have recently seen a strong rebound in software and services—which has paid off for our exposures. The market is looking beyond the initial infrastructure build-out toward those who can deploy and monetize AI profitably.

At the same time, clean energy has been another key contributor. It is proving to be a clear beneficiary of the massive electrification trends and energy demands driven by the AI boom itself.

So, our recent performance shows that building a resilient portfolio is not about relying on just one crowded tech trade. It is about capturing a broader set of opportunities—from software adopters to the clean energy infrastructure needed to power them.

What have been the key sustainable trends over the last months for a long-term investor?

For me, the most important development over the last few months is that sustainability is becoming deeply linked to the transformation of the real economy.

We are shifting our focus to the transition itself. You simply cannot electrify the economy without grids, industrial equipment, or even critical materials. And while they are essential, they also carry environmental and social risks. So sustainable investing is increasingly about identifying the companies enabling that transition, while remaining disciplined about managing the risks involved.

And we now have better tools to measure this impact. In November, we are starting to report under the Net Zero Investment Framework—or NZIF. This is a major step forward. It moves us past high-level commitments toward real implementation, looking comprehensively at companies' transition plans, key climate solutions, and indirect emissions.

Combined with active stewardship and engagement to encourage stronger corporate disclosures, sustainable investing is more & more about identifying and actively supporting the companies that are enabling this real-world transition.