The International Energy Agency (IEA) estimates that the buildings and construction sectors account for more than a third of global energy consumption and almost two-fifths of carbon emissions. That places improving the energy efficiency of buildings high on the climate change agenda – good news for Dublin-listed Kingspan (KGP), a specialist in high-performance insulation and ‘building envelope’ solutions. Enjoying market-leading positions around the world, its products reduce energy usage by managing moisture, temperature, light and air quality.
Structural growth drivers
More resilient than during last recession
These green credentials have proved a hit with funds focused on environmental, social and governance (ESG) criteria. Kingspan is the second-largest holding of the top performing Liontrust Sustainable Future UK Growth Fund (GB0030028764) for which energy efficiency is a key investment theme. And manager Peter Michaelis says the group should be capable of “posting ongoing growth despite concerns around global demand”. Meanwhile, Pictet Asset Management holds shares across a number of its funds. Steve Freedman, senior product specialist in the thematic equities team, recently told Investors Chronicle he likes the “powerful” structural demand drivers: “rapid urbanisation, which could lead building floor area to almost double by 2050, and tightening regulations”.