1、ab4 June 2025Global ResearchSustainable TransitionPoints of Inflection-Policy Clarity GrowsTheme Performance-Cause for Optimism Emerges as Policy Clarity GrowsThe key development this month was in the US as the House passed an updated Big,Beautiful Bill which,while not as positive as initially propo

2、sed,was seen as a risk-off clearing event for many transition stocks trading on worse-case scenarios(see US Decarb Ideas List).With the EU seemingly holding the line on ReFuelEU,China peaking emissions 5 years early and Indonesia accelerating its transition,there was cause for optimism,and all trans

3、ition themes continued positive MoM performance,with returns higher in May vs last month.Automation was the top-performing theme(12%),followed by Pollution Mitigation(10.6%)and Carbon Sequestration(10.5%).On MoM change in 12mf PE,all themes had positive changes,the largest being Pollution Mitigation

4、(16%),Automation(10%)and Alternative Fuels(8.2%).Themes trading at PE multiples notably outside their 5Y PE average are Carbon Sequestration(+12%),Circularity(+9%),Industrial Energy Efficiency(-17%)and Multimodal Transport(-8%).Asian Investment Conference-Sentiment Positive on Corporate Decarb Plans

5、 Most participants in AIC 2025 seemed to recognise that AI will change the world.However,according to climate scientist,Prof.Emeritus Mark Howden,perhaps there is something that can be stated with more conviction:it is now almost certain that the average temperature next year will have risen by more

6、 than+1.5C and that the current consensus is for a-14%GDP impact per 1C of warming(Copernicus,IPCC and UN).Professor Jeffrey Sachs commented that the US is ceding leadership in green industries to Asia,and it may take 15 years to get back on track.Despite policy trends in the US,many of the companie