Climate change, energy transition, AI – barely a day goes by that charities aren’t inundated with news stories surrounding these topics. What are some of the practical implications for charities and their investments?
Evelyn Partners Head of Responsible Investment Katrina Brown discusses how the transition to a cleaner, more resilient global energy system is unfolding against a backdrop of technological disruption, shifting geopolitics, and evolving investor expectations.
Can AI contribute positively to the energy transition?
Yes, absolutely, although AI does increase electricity demand today. In the US, data centres used about 4% of the country’s electricity in 2023, and that could rise to around 9% by 2030.1 However, there is a reasonable case and hope that it will make the energy system cleaner and more efficient in the long run.
The hardware behind AI is getting dramatically more efficient, with some companies reporting 10–20× improvements in the energy needed to run the same tasks. That means fewer servers, less power, and less heat to manage. AI itself is becoming more efficient, with research showing that improved task models can cut energy use by up to 90%, and it can help run power grids more intelligently – forecasting demand, balancing renewables, and reducing outages.
AI can also support heavy industries become cleaner by reducing waste and optimising operations. In aviation, for example, quick predictive adjustments in response to delays could reduce unnecessary fuel burn.
Meanwhile, companies building AI technology also invest in renewables, increasingly aim for water-positive data centre designs, and support nature-based carbon removal projects.
While AI’s energy footprint is growing, its long-term potential is clear: a smarter, cleaner and more efficient energy system.
Ten years on from the Paris Agreement — where are we?
It’s been a decade since almost every country in the world signed the Paris Agreement. The ambition was impressive, but progress since then has been uneven. Renewables have surged, but global emissions are still too high, and politics and geopolitics continue to complicate efforts, as seen at COP30.
But that’s not the whole story. There are reasons for optimism.
China, the world’s largest emitter, appears close to a pivot point in emissions — a major shift. Its enormous renewable energy manufacturing base is driving a massive domestic buildout and supplying the rest of the world. And while China is still constructing coal plants, many run at only around half their capacity.
Solar, paired with storage, has reached a global economic tipping point. It’s now the fastest and cheapest way to add new power capacity, unlocking energy access for communities far from existing grids.
Energy security has become a priority for governments. Electrification, powered by renewables, reduces fossil fuel dependence, lowers energy demand, and improves resilience.
Innovation is accelerating too.
Technologies like nuclear fusion and sodium-ion batteries are moving from labs to commercial plants and manufacturing lines. Google has agreed to buy fusion-generated power in the early 2030s — a development that once seemed unthinkable.
Granted, current pledges still point to about 2.4°C of global warming.2 But that is significantly better than the more dismal expectations back in 2015. As Oxford Professor Sam Fankhauser recently put it: “Every decimal point of avoided warming counts. The fight against climate change can still be won.”
Have ESG factors become more or less material in your investment process?
Material ESG factors can be bottom-up, like emissions of an individual company, but can also be more thematic, like responding to the technological revolution. We look at ESG factors on a multi-layered basis, assessing long-term megatrends and company-level indicators.
We see them becoming more financially material, particularly on the environmental side. This is now about economics, competitiveness, and long-term returns. What are the implications for investors and where can my charity learn more? Taken together, these developments point toward a decade defined not only by rising challenges but also by unprecedented opportunities.
AI has the potential to make energy systems cleaner and more efficient, global climate progress continues, despite political headwinds, and ESG considerations are becoming increasingly tied to long-term economic value.
For investors, the task is clear: to integrate these shifts thoughtfully and systematically, ensuring portfolios remain resilient while capturing the structural growth emerging from the transition opportunities ahead. Investments carry risks and you may get back less than you invested.
Some ethical funds may have a limited investment universe; this may affect their performance. There are plenty of ways to stay informed. Evelyn Partners provides a range of articles, webinars, podcasts and in‑person events, giving you regular access to expert insight.
1 EPRI 2024 white paper “Powering Intelligence, Analyzing Artificial Intelligence and Data Center Energy Consumption”
2 UN Environment Programme, Emissions Gap Report 2025
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What we do
Evelyn Partners is a charity investment specialist. We know no two charities are the same and we aim to work with your organisation, to become an extension of your own team, in pursuit of your financial objectives. • We currently manage over £3.4bn in assets for over 1,000 UK charities
- We offer segregated, discretionary portfolios created for your organisation’s specific income and ESG requirements
- We do not believe in a “one size fits most” approach
- We offer ongoing thought leadership including webinars, articles and 8 in-person charity seminars throughout the country each year
- We are UN PRI and Stewardship Code signatories
Evelyn Partners Investment Management LLP is authorised and regulated by the Financial Conduct Authority. More information on our services can be found at www.evelyn.com/charities
