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03/2025

The Relevance of Investments in Energy and Resource Efficiency

Andres Gujan explains the significant impact of these investments:

“The capital market is essential. Massive investments in improving energy and resource efficiency are needed to steer the world toward a CO₂-neutral circular economy. On a corporate level, these investments are crucial for maintaining competitiveness and enhancing sustainability. At Carnot Capital, we have the expertise to assess the impact of individual products and technologies.”

1. Energy Savings

Energy savings are a key aspect when evaluating the impact of energy efficiency measures. The amount of energy saved is typically measured in kilowatt-hours (kWh). Another important indicator is the percentage reduction in energy consumption compared to industry standards. These figures provide insight into the effectiveness of the measures.

2. Cost Savings

Financial savings in energy consumption are a major incentive for energy efficiency measures. The return on investment (ROI) is a key indicator here, measuring the return as the ratio of energy cost savings to the investment cost of the measure. The ROI indicates how quickly the investment pays off.

3. CO₂ Emissions

Reducing CO₂ emissions is another critical driver of energy efficiency measures. CO₂ savings are essential due to legal requirements, customer expectations, or corporate sustainability strategies. The carbon footprint of products—especially electric vehicles—is gaining importance. The footprint reflects the total greenhouse gas emissions generated throughout a product’s lifecycle. Reducing this footprint is crucial for advancing climate change mitigation efforts.

4. Resource Efficiency

Resource efficiency focuses on the sustainable use of natural resources such as water, energy, agricultural land, food, or metals. The goal is to reduce consumption and minimize waste. This is essential to ensure long-term resource availability and prevent severe environmental damage to natural ecosystems. Key indicators include the amount of materials saved and waste reduction through more efficient use and recycling of materials.

5. Productivity Improvements

Productivity improvements are a significant benefit of energy efficiency measures. Metrics such as output per unit of energy used and production process optimizations—leading to lower operating costs and increased efficiency—are essential. These enhancements help boost competitiveness and streamline business operations.

6. Social and Economic Indicators

Investments in energy and resource efficiency also bring social and economic benefits. They create jobs and improve working conditions through sustainable transformations. Key indicators include the number of jobs created or maintained and improvements in working conditions and public health due to reduced pollution and safer technologies. These measures contribute to social and economic development while enhancing quality of life.

7. Long-Term Sustainability

Long-term sustainability is a core objective of energy and resource efficiency initiatives. Detailed sustainability reports that document the long-term impact of investments on the environment, society, and the economy are essential tools. Compliance with sustainability standards and obtaining certifications are further indicators of long-term sustainability.

8. Monitoring and Evaluation

Continuous monitoring and evaluation are crucial for the success of energy efficiency measures. The use of energy management systems and other technologies for real-time tracking and analysis of energy and resource use enables ongoing assessment and optimization. Benchmarking—comparing efficiency measures with industry standards or best practices—helps identify progress and potential improvements.

“By combining these methods and indicators, companies and investors can comprehensively evaluate and continuously improve the impact of their investments in energy and resource efficiency. These measures not only contribute to cost and emission reductions but also promote sustainable and future-oriented development.”
Andres Gujan, Founder of Carnot Capital & Portfolio Manager

Andres Gujan, March 3, 2025

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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

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In the world of financial investments, investors are often faced with the question of whether it is better to invest in individual shares or funds. Andres Gujan explains the role that factors such as diversification, risk/return ratio and personal preferences play in this decision.

Diversification and Risk: Individual shares are targeted investments in individual companies, which enables potentially higher returns. However, this is also associated with a higher risk, as the success of an individual share depends heavily on company-specific and market-related factors. Funds, on the other hand, spread the risk across a large number of shares or asset classes, which reduces the risk of loss. At Carnot Capital, we always keep an eye on these risk factors and periodically compare the portfolio with the ESG and impact values.

Risk-Return Profile: Individual shares can fluctuate strongly in the short term, but offer the opportunity for considerable gains in the long term. Funds offer a more stable performance over longer periods and are particularly suitable for investors who want to avoid large fluctuations in value.

Time and Costs: The selection and management of individual shares often required more time, knowledge and research. Professional fund managers, like us at Carnot Capital, deal with the portfolio on a daily basis, which reduces the effort for the investor.

Personal Preferences: The decision between individual shares and funds also depends on personal goals, risk tolerance and ethical considerations. Investors should design their investment strategy according to their individual situation and financial goals and draw on the expertise of specialised fund managers, especially for thematic investments.

“Overall, a balanced mix of individual shares and, for example, impact funds can be a sensible strategy to benefit from the advantages of both forms of investment, i.e. to achieve a good risk/return profile and make a sustainable contribution in the area of energy and resource efficiency. Andres Gujan, Founder Carnot Capital & Portfolio Manager

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