The Ocean as a Source of Electricity Storage?

With spring’s arrival, not only does nature awaken, but so does our awareness of the planet. In April, environmental protection takes center stage, culminating in the international Earth Day on April 22. This year’s theme, “Our Power, Our Planet,” underscores the importance of sustainable resource management on a global scale. One approach gaining significance is impact investing, which strategically channels capital into companies that generate measurable positive effects on the environment and society. Our funds contribute by investing in energy- and resource-efficient technologies while delivering attractive returns.

Carnot Capital: Technology-Driven Sustainability

At Carnot Capital, we believe that technological innovation is the key to a sustainable future. Instead of advocating for sacrifice, we invest in companies whose products and technologies enhance energy and resource efficiency. With over CHF 250 million in assets under management and an annualized performance of over 6% since 2007, we successfully combine ecological responsibility with financial appeal.

Strategy and Target Sectors of Carnot Capital Funds

Our funds, particularly the Carnot Efficient Resources Fund, invest globally in publicly listed companies with resource-efficient technologies. Company selection is based on an attractiveness ranking, incorporating valuation and quality criteria. A key metric in our assessment is the Return on Capital Employed (ROCE). Our target sectors align with the four classical elements:

• Fire (Energy): Building technology, Industry 4.0, e-mobility, renewable energy
• Water: Drinking water treatment, wastewater purification, irrigation infrastructure
• Earth: Agriculture, food processing, raw material recycling
• Air: Emission control, low-emission fuels

Attractive Investment Opportunities

Focusing on companies with sustainable technologies not only creates ecological benefits but also opens up economic opportunities. Technologies that enhance energy and resource efficiency have excellent growth potential, as they provide solutions to pressing global challenges. Investors thus benefit from the combination of positive environmental impact and financial returns.

Conclusion

Earth Day on April 22 highlights the urgency of sustainable action. Impact investing, as practiced by Carnot Capital, demonstrates that investments in energy- and resource-efficient technologies can make a measurable contribution to global sustainability—without compromising on attractive returns. By supporting companies that develop innovative solutions to environmental challenges, investors actively contribute to a more sustainable future.

Andres Gujan, Founder of Carnot Capital & Impact Portfolio Manager, April 2025

The global data centre market continues to grow unabated. A significant proportion of this growth comes from ‘hyperscale data centres’, which are being built by large technology groups such as Microsoft, Google and Amazon. The increasing use of artificial intelligence and machine learning is significantly changing the requirements for data centres. These technologies require more computing power and higher rack densities, which necessitates new designs and increases location requirements. In addition, the demand for “colocation”, i.e. capacity close to users, is increasing to ensure faster loading times.

Sustainability and Energy Efficiency

The sustainability and energy consumption of data centres is an increasingly important aspect, as energy costs and environmental impact are rising steeply. There is a need to improve energy efficiency, and there are several approaches to this:

• Cooling is the most important consumption factor. Free cooling or liquid cooling are common efficiency measures.
• Eliminating losses from sub-optimal power distribution significantly reduces energy consumption.
• Energy for the infrastructure increases energy consumption – building automation helps to reduce this consumption.
• Many data centre operators rely on renewable energies to reduce their carbon footprint.

In order to build “green data centres” in the future, a holistic approach is required. This enables optimised energy efficiency and therefore both economic and ecological benefits.

Data Centers in the Carnot Capital Portfolio

Schneider Electric has developed a platform that enables the analysis, monitoring and automation of data centres. Data centres are an important part of the core business, accounting for almost 20% of sales. At ABB and Hubbell, this share is around 10% and also makes a substantial contribution to sales growth. Instalco, a Scandinavian installation company, and Energiekontor, which develops wind and solar projects for the operation of data centres, are also benefiting. Finally, Carel, a new portfolio item, develops advanced cooling systems tailored to the requirements of data centres.