Within the SDG Engagement Equity capability, both attractive investment fundamentals and the potential for a constructive engagement programme are equal pre-requisites for investment. This is well-illustrated through our exposure to Alliant Energy, an integrated utility company supplying electricity and natural gas to retail and wholesale customers in the US.
Alliant is a well-managed, diversified utility company that operates in Wisconsin and Iowa and serves an economically diverse region. The firm has a clear plan outlined for capital expenditure and operates in a favourable regulatory environment. The increasing number of different renewable energy sources, coupled with the declining role of coal producing energy sources over time, offers the company the potential to increase its rate base. We believe that this potential has not been sufficiently recognised and valued by the market.
There is also scope to further accelerate the company’s clean energy transition. We believe this can be achieved while treating employees negatively impacted by coal plant closures sensitively and fairly.
To dive into the details of Alliant's theory of change, our engagement progress to date and our next steps, read the full case study.