UK-listed asset manager Schroders has launched a product looking to capture the global shift towards a low carbon economy.

The Global Energy Transition fund aims to seek out those companies involved in clean energy, from renewable energy production, transmission and distribution to smart grid technologies and electric vehicle charging. 

In a statement from the firm, this fund “will not invest in companies with exposure to nuclear or fossil fuels”. Moreover it seeks to make hay from global trends such as decarbonisation, the electrification of energy use and increased energy efficiency.

Schroders' produced a study which found that investors are putting more stock on a fund manager’s focus on pollution and the growing importance of renewable energy.

This move towards ethical investing, or taking environmental, social and governance (ESG) issues more seriously is being seen across the board and was probably the stand-out message at this year’s Fund Forum in Copenhagen. Many attendees from both the sell-side and buy-side essentially said that ESG must now be put at the heart of the investment process.

Mark Lacey (pictured), head of commodities and fund manager of the Global Energy Transition Fund, said: “The energy transition opportunity is vast with around $120 trillion of investment into the sector required by 2050 to meet globally agreed climate goals. 

“This tremendous investment, coupled with growing consumer demand for clean technologies, is creating strong real earnings growth opportunities for companies in this space which in turn we hope will benefit our clients.” 

Schroders had £422.4 billion in assets under management as of 31 December, 2018.