There is growing scepticism among investors about the transition to net zero. This is part of the reason why the S&P Global Clean Energy Index is down 10 per cent over the past year, and has more than halved since 2021. Long-term investment trends have fundamentally changed, however. According to the International Energy Agency, investment in clean energy has accelerated since 2020, and spending on renewable power, grids and storage is now higher than total spending on oil, gas and coal.
- High-margin, structural growth drivers
- Financial targets look achievable
- Strong balance sheet
- Legacy assets could unlock value
- Recent fall in orders
- History of impairments
This is good news for Ricardo (RCDO), which is moving away from internal combustion engines and towards green solutions. The engineering consultancy aims to make over three-quarters of operating profit from its environmental division by 2027, according to analysis by Berenberg.