A call for action: Three themes shaping climate investing
Generational investment opportunity in resource efficiency
Thomas Sørensen, portfolio manager of the Nordea 1 – Global Climate and Environment fund
The world is in the middle of a defining shift in how it produces, moves and consumes energy. Fossil fuel dependence has re-emerged as a source of geopolitical fragility, electricity demand is outpacing supply, and the cost of energy has become a central concern for consumers, companies, and governments alike.
The lesson from the current Middle East crisis is the same one history keeps repeating – dependence on fossil fuels concentrated in politically volatile regions creates exposure that no strategic reserves can fully insulate against.
Diversifying energy sources is an essential part of the answer, but building that new capacity takes time. In the meantime, one truth remains as relevant as ever – the cheapest energy is the one we do not use.
The investment case for efficiency is stronger than it has been in decades, which is why resource efficiency represents our largest portfolio allocation at about 65%. Here, we invest in solution providers making our homes, factories, and data centres run smarter and more efficiently.
Power demand set to shine spotlight on water
Lena Jacquelin, portfolio manager of the JSS Green Planet fund
Rising electricity demand, catalysed by the expansion of AI, has positioned the power sector at the forefront of green investing. Global data centre power consumption is on track to roughly double by 2030.
This shift demands massive scaling of clean power generation alongside modernised transmission infrastructure.
Major technology companies are also moving beyond buying power from utilities to building their own capacity, while battery storage becomes critical to stabilise grids, lower prices, and improve access to renewable energy.
Geopolitical tensions and supply disruption have made energy independence a strategic priority on top of an environmental one, and critical materials sit at its core. Prices for the main electrification materials have climbed in 2026, with lithium and aluminium hitting historic highs, and as prices rise, the recycling of raw materials draws greater scrutiny.
Looking forward, water could be the next bottleneck. Data centre water use is expected to double to 1,200 billion litres by 2030. Around 80% of this water is lost to evaporation during cooling. Consequently, water efficiency is a focus for the next wave of investments.
Beware greenwashing as impact credit market expands
Willem Visser, sector portfolio manager, impact and emerging markets at T. Rowe Price
Impact fixed income is no longer niche – it sits at the intersection of a frontier for innovation and real-world change within global credit markets. Today, investor influence is shifting from passive participation to active origination.
The growing prevalence of thematic labels, including Blue, Outcome, and Amazonia bonds, marks a structural evolution: issuers are inviting investors into the design phase, not just the order book.
This collaboration transforms capital from a source of funding into a force for direction, enabling the targeted financing of specific UN SDGs.
In the case of blue bonds, this means mobilising capital towards clean water (SDG 6) and life below water (SDG 14) – through tangible projects such as marine conservation, coastal climate adaptation, and clean water infrastructure.
Still, this transition carries tension. While the intensifying costs of climate volatility are turning physical risk into a growth pillar of labelled finance, they may impact creditworthiness and drive dispersion across issuers and sectors.
Improved labelled bond market standards provide guardrails to protect investors against ‘greenwashed’ bonds and accelerate the next phase of labelled bond market growth.