Equity Quantitative Research abc Global Global...

abcGlobal Research

Pure-play climate stocks lead the way in climate investing, having outperformed both the HSBC Climate Index and global equities by 45% and 43%, respectively, year to date

As the recipient of the largest share of climate stimulus funds, Energy Efficiency & Energy Management posted the strongest sector return, up 16% year to date

Although EEEM now trades on a 20% premium to the climate index for 2010e, we believe this premium is justified, on the basis that its earnings growth, at 23%, is the strongest of the four climate sectors

In addition to tracking the development of the climate theme,

at HSBC we are also in a position to distinguish between the

obvious ‘pure plays’ and the growing number of other

companies that are re-shaping their businesses as they

seek to gain competitive advantage in the emerging low-

carbon economy.

In this quarterly review we delve deeper into the HSBC

Climate Index in order to examine the dynamic between

pure play and non-pure play companies and use this

opportunity to explore their respective representation,

geographical distribution and performance characteristics.

With the first phase of the global stimuli announcements

now complete, we also use the index to analyse the equity

market performance of climate-related sectors and

industries in an attempt to determine whether the various

stimulus plans have begun to have a noticeable impact on

stock price performance.

HSBC Climate Change Indices The scheduled quarterly review of constituents of the HSBC

Global Climate Change family of indices has now taken

place. The minimum market capitalisation threshold moves

from USD250m to USD350m and there will be 28 additions

to and 2 deletions from the benchmark index. All changes

will be effective as of the close of business on 19 June 2009.

Equity Quantitative Research Global

Climate Change – June 2009 quarterly index review Enhance climate returns with pure plays

11 June 2009 Joaquim de Lima* Analyst HSBC Bank plc +44 20 7991 6836 [email protected]

Vijay Sumon* Analyst HSBC Bank plc +44 20 7991 6839 [email protected]

View HSBC Global Research at: http://www.research.hsbc.com

*Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to NYSE and/or NASD regulations

Issuer of report: HSBC Bank plc

Disclaimer & Disclosures This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it

http://www.research.hsbc.com/

2

Equity Quantitative Research Global 11 June 2009

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Pure plays lead climate recovery 3 Introduction 3

Pure vs non-pure plays 4

LCEP dominates pure plays 4

Geographic spread 6

Climate performance 6

Pure plays lead the way 6

Climate investments – the future 7

Stimulating the climate recovery 8 Climate stimulus – phase I 8

Aggregate climate stimulus 9

EEEM receives largest boost 9

Climate change performance 11 Climate change benchmark 11

Sector themes and performance 12

Climate change valuations 13 Climate PE valuations 13

EEEM PE valuations 14

In the next section our climate change colleagues explore emission reductions 15

Off target? 16 Tapping energy efficiency 17

Growing clean energy 19

A climate deal in the making? 20

HSBC Climate Change Index review 22

HSBC Global Climate Change Benchmark Index 23 Highlights and changes 23

New benchmark composition 23

HSBC Investable Climate Change Index 25 Highlights and changes 25

New Investable composition 25

HSBC Climate Change 100 Index 26 Highlights and changes 26

New 100 composition 26

Disclosure appendix 29

Disclaimer 31

Contents

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Introduction Utilising the framework developed by the HSBC

Equity Quant Research Group, we are able to

monitor and track the engagement of companies

and industries which provide goods, products and

services that address the issues of climate change.

In addition, the model also allows us to evidence

the ever growing number of companies across the

globe that have recognised the link between

climate change and their own long-term success.

For many of these companies, this requires a

significant change to their operating model as well

as their future growth and investment strategy.

Companies across large swathes of industry have

already begun to respond and our estimates

suggest that nearly 4% of global listed market

capitalisation is now already engaged in providing

goods and services that are linked to the issues of

climate change.

Growth in number of companies in HSBC Climate Index

0

100

200

300

400

Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

HSCCB

Pure Play

Source: HSBC Equity Quantitative Research

Apart from being able to track the development of

the climate theme, we are also in a position to

distinguish between the obvious ‘pure plays’ and

the growing number of other companies that are

re-shaping their businesses as they seek to gain

competitive advantage.

Pure plays lead climate recovery

Pure plays returned 8.0% year-to-date compared to a 7.2% rise

for global equities

North America and Europe together account for almost 70% of all

pure plays

On the basis that climate change is global, companies will likely

have little option but to develop comprehensive climate strategies

in order to achieve and sustain competitive advantage

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Pure vs non-pure plays HSBC considers a company to be engaged in

climate change activities when more than 10% of

its revenue is derived from one or more of the 18

themes (see chart on next page) belonging to the

following four principal sectors:

Low Carbon Energy Production (LCEP)

Energy Efficiency and Energy

Management (EEEM)

Water, Waste & Pollution Control (WWPC)

Finance (FIN)

In this section we analyse exactly how this

growing engagement is split between the pure

plays, which represent those companies that

derive more than 50% of their revenues from

climate-related activities, and the non-pure plays.

Pure and non-pure weightings as of 5 June 2009

Pure 134

Stocks

39%

Non Pure

Stocks 243

61%


Of the 377 stocks in the HSBC Climate Change

Benchmark, 134 companies, representing 36% of

the index, are classified as ‘pure plays’ and 243 or

64% are ‘non-pure’ plays.

In terms of their respective index weights, pure

plays account for 39% of the total and the non-

pure plays represent the remainder.

LCEP dominates pure plays As in the case for the Benchmark index (see page

23), Low Carbon Energy Production is also the

largest weighted sector for the pure

plays, accounting for approximately 63% of the

total weight.

Pure–play sector weightings as of 5 June 2009

EEEM

15%

FIN

0%

WWPC

22%

LCEP

63%


One of the striking differences in the overall

sectoral distribution between the pure plays and

the benchmark lies in their respective

representation of the Energy Efficiency & Energy

Management sector.

This sector carries a 27% weight within the

benchmark index but it represents only 15% of the

weight in the pure play space. However, this

should not come as a surprise since many of

the global Energy Efficiency & Energy

Management companies tend to be the larger

industrial conglomerates.

Equity Q

uantitative R

esearch G

lobal 11 June 20

09

5

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c

HSBC Global Climate Change Index Framework – sectors and themes

Low Carbon Energy Production Energy Efficiency & Energy Management

Bio- Energy Buildings Efficiency

Diversified Renewable Energy Storage

Gas Fuelcells

Hydro / Geothermal / Marine Industrial Solutions

Integrated Power Transport Efficiency

Nuclear

Solar

Wind

Financials

Water

Carbon Trading Waste

Investment Companies Pollution Control

Water, Waste & Pollution Control


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Geographic spread A question we are often asked by investors’

seeking to explore investment opportunities in

the climate space is, ‘where should I look for the

pure plays?’

The answer lies in the chart below. Although rich

pickings are to be found in the US, Europe and

Asia Pacific, together America and Europe

account for almost 70% of all pure plays.

Investors looking for pure plays would therefore

do well to focus initially on North America and

Europe, in our view.

Pure plays – regional index weighting as of 5 June 2009

ME and

Africa

5%

Asia Pacific

22%

Europe

31%Latam

3%

North

America

39%


Climate performance As a theme, over the long term, climate-related

investments continue to outperform global

equities by a substantial margin. Indeed since 1

January 2004, the HSBC Climate Change Index

has registered a return of 41% compared to a 5%

decline across global equities (to 5 June 2009).

Our work suggests that companies which are

prepared to reposition their businesses through

positive action on climate change; the evolving

policy and regulatory dimension and changing

consumer behaviour have begun to display

superior stock price performance.

In fact, since 2004, companies classified as either

pure play or non-pure play have consistently

outperformed global equities every year with the

exception of 2008.

Pure plays lead the way Significantly, it is the pure plays that have

registered the strongest performance year-on-year,

with the only exception being 2008.

Performance - pure, non-pure and HSBC Climate Index

-50%

-30%

-10%

10%

30%

50%

2004 2005 2006 2007 2008 2009*

Pure

Non Pure

Climate Benchmark

* To 5 June 2009 Source: HSBC Equity Quantitative Research

Following a losing year, pure plays have now

resumed their outperformance over both global

equities and the non-pure plays, having returned

8.0% year-to-date compared to a 7.2% rise for

global equities.

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Climate investments – the future On the basis that climate change is global, we

believe no sector will remain immune from the

implications of a changing climate and a low-

carbon world. The result is companies will

probably have little option but to develop

comprehensive climate strategies if they wish to

achieve and sustain competitive advantage.

Those that already have and others that are

beginning to adapt to the structural changes taking

place will, we believe, be better positioned to

leverage the emerging opportunities. Over the

long term we expect companies’ management of

climate-related opportunities to ultimately impact

their valuations and our analysis thus far suggests

that some of these types of companies have

already begun to deliver superior returns as well

as substantial equity market outperformance.

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Climate stimulus – phase I As governments continue to face up to the effects

of the economic downturn, they have also come to

recognise the importance of protecting the

climate. The result is that over the past eight

months policymakers and governments have

chosen to include some form of climate

component in their economic recovery plans. The

upshot is that globally, we have seen governments

allocate a rising proportion* of their stimulus

packages towards laying the foundations for

growth within the low-carbon economy.

With the first phase of these stimuli

announcements now complete, we analyse the

equity market performance of climate-related

sectors and industries in order to determine

whether the stimulus plans have begun to have a

noticeable impact on climate related investments.

Stimulating the climate recovery

Phase I of global climate stimulus packages totals USD350bn

EEEM is largest recipient of funds with 53% of allocation

Pure-play EEEM sector posted strongest return y-t-d, up 49%

* Please refer to “Building a green recovery” dated 22 May 2009 for details

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Aggregate climate stimulus Examining the various stimulus plans through the

eyes of the HSBC Climate Change index

framework, we estimate that approximately

USD350bn has now been earmarked for climate-

related investments by governments across the

world since October 2008.

, Global stimulus allocations mapped to HSBC Climate Index Framework *

Sector Total Climate Change related stimulus in USDbn

Percentage of climate allocation

LCEP 75.2 22% EEEM 184.7 53% WWPC 86.2 25% Finance 0 0% Total 346 100%

* Since October 2008 Source: HSBC

Of the total, over USD184bn, which represents

more than 50% of the funds allocated, has been

targeted at Energy Efficiency and Energy

Management measures alone.

In contrast, Low Carbon Energy Production and

Water, Waste and Pollution Control have each

received approximately 25% of funds, which turn

out to be considerably more narrowly focused

geographically than is the case for Energy

Efficiency and Energy Management.

EEEM receives largest boost In order to determine whether the various stimulus

plans have already begun to have a telling impact

on the performance of climate-related

investments, we focus on Energy Efficiency and

Energy Management as the recipient of by far the

largest amount of government funds (53%).

Notably these pledges have also been spread out

across the most diverse range of governments

geographically.

Recognising that there will inevitably be

questions over timings and the administration of

the various government disbursements, we have

focused our attention only on those plans that

have been announced.

EEEM the strongest performer The Energy Efficiency and Energy Management

sector has by far been the strongest performer

year to date, returning over 16% compared to

4.2% for the HSBC Climate Change Index and

6.7% for global equities.

In order to analyse whether this strong

performance is in any way linked to the large

stimulus funding allocated to energy efficiency

measures globally, we have charted (see below)

the performance of the sector, that of pure plays

Performance and stimulus funding – EEEM Benchmark, pure and non-pure plays*

EEEM

40

60

80

100

120

Oct-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-090

50

100

150

200

USD

bn

Non pure

EEEM Benchmark

Stimulus Packages in USD bn (RHS)

1 China - NDRC

2 US - ARRA

PureEEEM

40

60

80

100

120

Oct-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-090

50

100

150

200

USD

bn

Non pureNon pure

EEEM BenchmarkEEEM Benchmark

Stimulus Packages in USD bn (RHS)Stimulus Packages in USD bn (RHS)

1 China - NDRC

2 US - ARRA

PurePure

Source: * Rebased to as of 3 October 2008

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and the non-pure plays since October 2008, when

the first stimulus packages were announced. On

the right-hand side of the diagram we have also

plotted the global cumulative stimulus funds that

have been pledged to Energy Efficiency and

Energy Management measures.

What is readily discernable from the chart is that

prior to the passing of the first stimulus package

in October 2008, the Energy Efficiency and

Energy Management sector, global equities and

most other climate-related themes and

investments were all in decline. More

significantly, the pure-play Energy Efficiency and

Energy Management stocks were experiencing a

more rapid decline than the non-pure plays.

After the substantial commitment to energy

efficiency measures in the Chinese NDRC

stimulus plan and the subsequent pledges in the

US government’s ARRA package, which together

represent 60% of global funds pledged to the

sector, this trend began to reverse.

In fact, the low for the pure plays occurred on20

November 2008, soon after the Chinese NDRC

package announcement, in contrast to the low for

global equities which occurred on 9 March 2009.

Not only was this the point at which the

downward trend reversed but it was also when the

pure plays began to outperform the non-pure plays

and this outperformance has since continued to

accelerate. Indeed it is this strong turnaround in

the performance of the pure plays that has fuelled

the robust overall performance of the Energy

Efficiency and Energy Management sector.

Looking in detail at the performance of the

individual themes that make up the Energy

Efficiency and Energy management sector, we note

a consistent story emerging across all of its themes.

Price performance of the pure plays in the EEEM theme in 2009

Year to sate Since 2 March Since 1 May

EEEM 49% 71% 17% Building efficiency 77% 83% 19% Industrial efficiency 84% 92% 8% Transport efficiency 46% 66% 18% Energy storage 33% 71% 18%

*Fuelcells have been excluded as there are currently no pure-play stocks in the index Source: HSBC Equity Quantitative Research

The widespread and strongly positive returns

across all of the pure play themes is striking and if

nothing else suggests that at a minimum, the

global stimulus packages have acted as a support

for the sector and at best the packages have

already begun to have a material and positive

impact on stock price performance.

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Climate change benchmark Over the long term, between 1 January 2004 and 5

June 2009, climate change investments have

outperformed global equities despite the recent

dislocation in the market and the continuing

economic downturn. The outperformance by the

HSBC Global Climate Change Benchmark index

versus global equities over this period currently

stands at 46%.

Additionally, year to date (to 5 June), the pure-

play stocks have seen the strongest performance,

outperforming global equities by 0.8% and the

Climate Change Benchmark by 3.3%.

Climate change performance

The Climate Change Benchmark has now returned 41% (back-

tested) since 2004 and has outperformed global equities by 46%

Pure-play climate change stocks have outperformed global

equities year-to-date

Performance of HSBC Global Climate Change Index vs pure and non–pure vs global equities year-to-date*

70

80

90

100

110

Jan-09 Feb-09 Mar-09 Apr-09 May -09 Jun-09

Pure Play IndexNon Pure Play IndexHSCCBMSCI World

Note: *Data as of 5 June 2009 Source: HSBC Equity Quantitative Research , Bloomberg

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Sector themes and performance

Performances year to date indicate that all four

sectors except Water, Waste and Pollution Control

have posted positive returns.

Significantly, 16 of the 18 investable themes have

also posted positive returns, of which the

strongest returns have been registered in

Transport Efficiency (+38%), Bio-Energy (+31%)

and Power Storage (+31%).

Integrated Power (-12%) and Waste (-10%) are

the only two themes to have registered losses

since the beginning of the year.

Price performance of themes: 1 January 2009 to 5 June 2009 (%)

-20 -10 0 10 20 30 40 50

HSBC Climate Index

Bio-EnergyDiv ers ified Renew ableGasHy dro / Geothermal /NuclearSolarIntegrated Pow erWind

Buildings Effic iencyFuelcellsIndustrial Effic iencyPow er StorageTransport Effic iency

Pollution ControlWasteWater

Carbon TradingInv estment Company

Source: HSBC

Price performance of HSBC Climate Index and sectors: 1 January 2009 to 5 June 2009 (%)

-4 -2 0 2 4 6 8 10 12 14 16 18

Low Carbon Energy Production

Energy Efficiency & Management

Water, Waste & Pollution Control

F inancials

HSBC Climate Index

Source: HSBC

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Climate PE valuations Despite the current economic environment, the PE

of the HSBC Global Climate Change Index

currently stands at 15.7x and is trading at a

premium of 8.3% to global equities for 2009e. On

a 12-month forward prospective basis, this places

it just below its long-term average PE of 15.9x. In

the chart, we have registered that the PE has been

rising gradually in 2009 as earnings estimates

have fallen. In terms of climate change sectors,

we believe EEEM continues to offer the strongest

earnings growth expectations for 2010.

HSBC Climate Change rolling 12M forward PE and PER

5

10

15

20

25

04 05 06 07 08 09

70

90

110

130

150HSBC Climate Change PEPE relativ e to World Index (RHS)

Source: HSBC, Thomson Financial Datastream

Climate change valuations

Although the EEEM sector trades at a premium, we believe this is

justified on the basis that the forward earnings growth prospects

for 2010 are the strongest of the four climate change sectors

HSBC Global Climate Change Benchmark Index: I/B/E/S consensus forecasts

____ EPS growth (%) ____ ________ PE (x) _________ ____ DPS growth (%) ____ ___ Dividend yield (%) ___ 2008 2009e 2010e 2008 2009e 2010e 2008e 2009e 2010e 2008e 2009e 2010e

Low Carbon Energy Production -10.5 6.6 14.6 15.5 14.6 12.7 12.2 -1.7 5.8 3.1 3.3 3.5

Bio-energy 20.9 -18.0 9.2 11.3 13.7 12.6 34.3 -17.3 11.9 2.3 2.1 2.3 Diversified renewable energy -6.6 -2.6 6.7 13.5 13.8 12.9 142.4 3.9 2.3 2.9 3.0 3.0 Gas 0.4 -2.6 10.7 15.2 15.7 14.1 12.7 3.5 7.6 2.8 2.9 3.1 Geothermal / Hydro/ Marine 0.2 3.3 8.6 14.2 13.1 12.1 5.6 -0.5 14.9 1.6 3.7 4.2 Integrated power -8.2 16.1 6.6 13.8 11.9 11.1 8.5 -1.4 4.5 4.3 4.7 4.9 Nuclear -11.8 9.7 13.9 15.4 14.3 12.4 8.2 3.4 4.4 3.3 3.3 3.5 Solar -64.3 -26.7 171.0 39.3 53.5 19.8 27.9 -26.8 18.5 0.9 0.6 0.7 Wind 30.2 -14.4 30.3 19.9 23.4 17.9 10.8 -22.3 33.1 0.5 0.7 0.9

Energy Efficiency & Energy Management -25.5 -23.4 23.6 15.5 20.1 16.3 -1.2 -20.9 5.4 3.0 2.4 2.6

Building efficiency -26.0 -60.1 73.5 11.2 28.2 16.2 -30.3 -7.1 7.0 3.2 2.9 3.2 Industrial efficiency -72.2 115.1 24.1 79.8 27.3 22.0 -2.4 -7.7 4.2 1.0 1.0 1.0 Transport efficiency -84.9 58.3 131.9 88.7 56.1 24.2 n/m -24.6 31.4 1.2 0.9 1.2 Fuel cells -38.8 28.8 10.9 21.2 16.4 14.8 2.1 -3.4 3.0 2.9 2.8 2.9 Energy storage 8.6 -65.2 36.0 9.1 26.3 19.3 18.6 -61.7 12.2 3.9 1.6 1.8

Water, Waste & Pollution Control 0.7 -5.2 6.2 13.4 14.2 13.4 21.0 8.3 3.4 3.1 3.5 3.6

Pollution control 20.3 12.1 11.9 19.3 17.3 15.4 n/m n/m 110.0 0.0 0.0 0.0 Waste 3.4 -1.0 11.6 15.1 15.3 13.7 48.1 15.7 2.0 3.0 3.4 3.5 Water -0.8 -7.7 3.2 12.5 13.6 13.1 5.4 4.5 4.1 3.4 3.7 3.8 HSBC Global Climate Change benchmark -13.8 -3.2 15.2 15.2 15.7 13.6 8.5 -5.5 5.4 3.1 3.1 3.3 Global Equities (MSCI World) -27.2 -8.7 22.0 14.3 14.5 13.0 11.1 -4.3 4.1 3.5 3.4 3.6

Source: HSBC, Thomson Financial Datastream, I/B/E/S, HSBC Equity Strategy

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EEEM PE valuations Following the strong rally since the beginning of

the year, the Energy Efficiency and Energy

Management sector has seen its 12-month forward

PE rise from 10.6x to 19.0x.

EEEM Sector: rolling 12M forward PE and PER

5

10

15

20

25

04 05 06 07 08 09

70

90

110

130

150EEEMPE relativ e to World Index (RHS)

Source: HSBC, Thomson Financial Datastream

Although this sector now trades on an almost 20%

premium to the climate index for 2010, this is

only slightly above its five-year median of 16.8x.

Nevertheless, we believe this premium is justified,

on the basis that the earnings growth prospects

for 2010 are the strongest of the four climate

change sectors.

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In the next section our climate change

colleagues explore emission reductions

Nick Robins* Analyst HSBC Bank plc +44 20 7991 6778 [email protected]

Roshan Padamadan*, CFA Analyst HSBC Bank plc +44 20 7991 6715 [email protected] *Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered & qualified pursuant to NYSE and & or NASD regulations. We gratefully acknowledge the assistance of D Saravanan and Charanjit Singh from the HSBC Climate Change Centre of Excellence in the preparation of this report.

mailto:[email protected]

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As the world prepares for the Copenhagen climate

conference in December, the global economy

continues to re-carbonise – just as scientists tell us

that a sharp reversal is required. This year, global

concentrations of CO2 reached new highs at 389.1

ppm, 139% higher than the pre-industrial average.

From 2007 to 2008, the increase was 1.9 ppm,

higher than the 1990s average of 1.5 ppm/yr.

Although 192 countries have signed the UN

Framework Convention on Climate Change,

solving the problem means focusing on around

less than a tenth of these. Almost 80% of current

greenhouse gas emissions (GHGs) are produced

by just 15 countries, counting the European Union

as a single country.

Off target?

As the world gears up for the Copenhagen climate conference,

our research reveals some positive signs of movement towards a

low-carbon economy – with China and Germany, for example,

meeting their 2010 renewable targets ahead of target

But these small steps have so far been insufficient to prevent the

recent re-carbonisation of the global economy

Furthermore, current offers on the table for emission reductions in

2020 are a fraction of what scientists tell us is needed; diplomats

will need to work overtime in the coming negotiating sessions to

close the gap

Historic emission contribution (1950–2007) in bn tC

68.4

43.234.2

28.7

12. 1 8.0 5.8

0

10

203040

5060

70

80

US

Eur

Rus

sia

Chi

na

Japa

n

Indi

a

Can

ada

Source: CIDAC, HSBC

GHG emission contribution (%, 2005) by number of countries

0

20

40

60

80

100

1 3 6 9 12 15 18 188

China

plus US

plus EU27

plus Russia, India, Japan

Brazil, Canada, Mex icoIndonesia, Iran, S.Korea

Australia, Ukraine, S.Africa

Rest of the w orld

Source: WRI, CAIT, HSBC

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However, if we examine the historical

contribution of these major nations from 1950 to

2007, the US emerges as the major contributor

followed by Europe while China and India take 4th

and 6th place, respectively.

If we are to make progress to a low-carbon

economy, then we will first need to take energy

out of growth through enhanced efficiency

measures, and second, take carbon out of energy

through the promotion of clean energy sources.

Tapping energy efficiency Despite the historic improvement in energy

efficiency, global energy use is still growing overall.

During the period 2001-2006, global energy demand

increased by 15%, or 2.8% per annum.

Energy efficiency improvement is a basic, yet

significant, way of addressing both energy

security and environment concerns. By 2050,

energy efficiency improvements have the

potential to reduce primary energy demand by

c300EJ, resulting in an annual emission reduction

of c20-25GtCO2 (compared to a business-as-usual

scenario), according to the IEA.

Carbon emission trend (mtCO2e*)

0

1000

2000

3000

4000

5000

6000

7000

8000

USChin

a

Europe

Russia Ind

ia

German

y

Canad

a UK

Austra

liaFran

ce

S.Korea

S.Africa

Mexico

Brazil

Poland

1990 2006 2010E

0

1000

2000

3000

4000

5000

6000

7000

8000

USChin

a

Europe

Russia Ind

ia

German

y

Canad

a UK

Austra

liaFran

ce

S.Korea

S.Africa

Mexico

Brazil

Poland

1990 2006 2010E Source: EEA, EIA, HSBC (*mtCO2 for developed countries)

Energy Intensity trend 1990-2010e (BTU per GDP PPP USD 2000)

0

5000

10000

15000

20000

25000

30000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2010

US

Europe

Russia

S.Africa

China

India

World

Source: EIA, HSBC estimates

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Over recent decades, energy intensity per GDP

unit – an indirect measure of energy efficiency –

has declined smoothly and continuously. The

energy intensity trend in China registered the

biggest drop at c42% between 1990 and 2005.

India and Russia currently have the least energy

efficient economic models, offering the highest

potential for improvement. However, progress in

the OECD countries has stalled, which could be

either a warning that further gains are hard to find

– which would contradict the available evidence –

or a sign that tough regulation is needed to move

to a new level of efficiency.

For a few laws more

The latter explanation appears more likely, with few

countries yet having sufficiently binding regulatory

frameworks. Only China and the EU have set

country-level energy efficiency targets. China’s 11th

Five-Year Plan (2006-2010) has set an ambitious

target of a 20% reduction in energy intensity by

2010, giving an average 4% drop per annum.

China’s energy intensity fell by an impressive 4.2%

in 2008 after more modest declines of 1.3% in 2006

and 3.7% in 2007. China’s National Bureau of

Statistics has stated that the country’s energy

intensity dropped 2.89% in Q1 2009. We expect that

China will yet meet its 20% target with some

acceleration in 2009 and 2010.

The third pillar of the EU Climate Energy

package aims to cut the EU’s primary energy

consumption by 20% by 2020. This is seen as the

prime means by which to improve energy

security, climate protection and competitiveness

all at once. Hitting the target would slash the EU’s

energy bill by EUR100bn by 2020, saving

780mtCO2, which is double the reduction

committed under Kyoto Protocol by 2012.

The EU’s energy legislation promotes energy-

efficient buildings, appliances, processes and low

emission cars with a penalty for tail gas emissions

for cars emitting more than 120g/km by 2015. But

we believe that the EU’s efficiency goals are

vulnerable to slippage without stronger

disincentives for non-compliance.

Upgrading building efficiency

Buildings are responsible for a third of global

energy consumption – and final energy use in the

household sector increased by 14% between 1990

and 2004 across 15 OECD countries, according to

the IEA. Space heating was the major consumer

of energy in the household sector accounting for

54% of the total in 2004. However, this is a sharp

fall from 59% of the total in 1990, driven by a

combination of higher efficiencies of space

heating equipment and improved thermal

performance of new and existing dwellings.

Across these countries, the specific energy per

heated area actually declined by 16% between

1990 and 2004. Japan and the United Kingdom

are the only countries to register an increase in

energy intensities. But France, Germany and Italy

still have the highest levels of energy intensity.

This could be the result of a greater percentage of

poorly insulated older buildings.

Trends in specific energy use in space heating (kJ/m2 /HDD)

0

50

100

150

200

1990 1992 1994 1996 1998 2000 2002 2004

Germany Canada USUK Japan China

Source: IEA – Energy use in New Millennium 2007, HSBC

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Promoting industrial energy efficiency

Industrial efficiency offers huge potential but is

highly fragmented. Over the past five years, the

Energy Efficiency Index (EEI) in the Iron and

Steel sector of the G8+5 countries has improved

by 9%, or 1.8% per year. China and India showed

strong progress, while South Africa’s EEI

deteriorated. The likely explanation is the rapid

expansion of production capacity with relatively

efficient technology.

Harnessing transport efficiently

Transportation is responsible for almost one-third of

world energy use. Between 1990 and 2004, the

overall energy efficiency of passenger transport in a

group of 17 IEA countries improved by just 0.5%

per year. South Korea emerges as the best performer

by achieving its 2012 fuel economy targets ahead of

time; the EU and Japan top the chart in terms of

highest fuel efficiency. Relatively tight auto

regulations have led to the widespread diffusion of

electronic control systems and high fuel prices have

driven stronger consumer demand for more efficient

cars. North American auto efficiency hovers at the

lower end of the chart, one explanation for the

current woes in Detroit.

Growing clean energy With momentum gathering towards a decarbonised

economy, countries are increasing their focus on

renewable power. In spite of this, the contribution of

green power has remained almost constant over the

past decade, due to the resurgence of the use of coal

in the global energy mix.

Green Power Contribution (inc. Large Hydro) in %

5%

10%

15%

20%

25%

30%

35%

40%

1980 1983 1986 1989 1992 1995 1998 2001 2004

US Eur China India Japan

Source: ICCT – Gas and Fuel Economy Standards 2007, HSBC

As part of the efforts to decarbonise the electricity

sector, a number of key countries have set targets

to increase the contribution of renewable energy

by 2010. Most countries remain far from realising

these goals, but China and Germany have already

hit their targets ahead of time.

As a whole, the European Union is lagging

behind. The recent renewable energy progress

report from the EU Commission states that the

Union will not be able to achieve its 2010

renewable targets: only 19% of electricity is

expected to come from renewable sources by

2010 compared with a 21% target.

Trend in Energy Efficiency Index (EEI) in Iron & Steel

0

50

100

150

200

250

300

350

S.Africa

USA

Brazil

UK

Russia

Canada

France

China

India

Germ

any

Japan

1996-2000 2001-2005

Source: REEP- Global Status Report on Energy Efficiency 2008

Transport Energy Efficiency target (mpg)

0

10

20

30

40

50EU Japan

India

China

Australia

Canada

S.Korea

US

2005/2006 2010 Target

Source: ICCT – Gas and Fuel Economy Standards 2007, HSBC

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Enforcement remains an issue

To hit the EU’s ambitious 20% green power target

for all primary energy by 2020, tougher penalties

for non-compliance will be required. The EU

renewable energy directive mandates

infringement proceedings against member states

that fail to fulfil their obligations, but as these

proceedings can often remain unresolved for years

this is not a compelling driver for action.

The proposed Clean Energy and Security

legislation in the US does, however, contain

clauses to penalise states for any shortfall in

renewable electricity generation.

A climate deal in the making? This mixed progress in terms of hitting historical

carbon, efficiency and renewables targets

suggests we need to take a hard-headed look at

what can be expected from December’s

Copenhagen climate summit.

As we write, negotiators are in the second session

of talks this year to agree a broad-based

agreement on emission cuts, adaptation, finance

and technology. Scientists from the IPCC suggest

that industrialised countries need to cut emissions

by 25-40% below 1990 levels by 2020. But our

analysis suggests that the commitments made to

Emission commitments compared with IPCC benchmark

25%

30.0%

25.0%

20.0%10.0%

5.0%

3.5%

2.6%10.4%

9.3%

0% 5% 10% 15% 20% 25% 30% 35% 40%

UNFCCC Target

Norw ay

Sw itzerland

EU

Japan

Australia

US

Canada

Av g Commitment

Av g Annex I

Source: UNFCCC, HSBC (Countries Commitment were recalculated to 1990 base year)

Renewable Energy Progress (excl large hydro) in %

0%

5%

10%

15%

20%

25%

Europe UK Germany France Poland US Canada Australia Brazil Russia India China* S.Africa Mex ico S.Korea

1990 2006 Target by 2010

Source: EIA, HSBC (*Shows only trend in Wind power generation capacity; Canada doesn’t have RE target but assumed same as US Climate bill)

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date by the Annex I countries are just 11%. Only

the EU, Norway and Switzerland currently sit

within the recommended range. Targets proposed

by both the US Congress and the Obama

Administration are far below the IPCC

benchmark, creating one of the more entrenched

obstacles to a deal in December.

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HSBC Climate Change Index review

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Highlights and changes

The minimum market capitalisation threshold

is now USD350m.

The benchmark index still represents 18

investment themes.

Quarterly changes to the Benchmark Index

are outlined in the table below.

HSBC Global Climate Change benchmark index quarterly changes

Sector Ins Outs

Low Carbon Energy Production 20 1 Energy Efficiency & Management 7 0 Water, Waste & Pollution Control 1 0 Financials 0 1 Total 28 2

Note: based on data as of 5 June 2009 Source: HSBC

New benchmark composition Benchmark index new composition as of June 2009

Description No. of stocks Weighting (%)

Low Carbon Energy Production 199 60.60

Bio-Energy 30 3.07 Diversified Renewable 18 2.72 Gas 3 2.11 Hydro/Geothermal/Marine 15 1.59 Integrated Power 44 26.90 Nuclear 28 12.38 Solar 40 6.79 Wind 21 5.04

Energy Efficiency & Management 111 27.23

Buildings Efficiency 24 4.28 Energy Storage 17 1.32 Fuelcells 8 0.75 Industrial Efficiency 40 14.95 Transport Efficiency 22 5.93

Water, Waste & Pollution Control 63 12.03

Pollution Control 2 0.30 Waste 16 4.37 Water 45 7.36

Financials 4 0.14

Carbon trading 2 0.05 Investment company 2 0.09

Total 377 100


HSBC Global Climate Change Benchmark Index

Minimum market capitalisation threshold raised from USD250m to

USD350m

There will be 28 additions to and 2 deletions from the index

Changes will be effective as of the close of business on 19

June 2009

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Quarterly changes to the Global Climate Change Benchmark Index

Status Name Country Group description

In ANDERSONS INC USA Low Carbon Energy Production In A-POWER ENERGY GEN USA Low Carbon Energy Production In ARENDALS FOSSEKAMP Norway Low Carbon Energy Production In AVICHINA INDUSTRY H China Low Carbon Energy Production In BLACK EARTH FARMING Sweden Low Carbon Energy Production In CANADIAN SOLAR INC USA Low Carbon Energy Production In CHINA POWER NEW EN Hong Kong Low Carbon Energy Production In DENISON MINES CORP Canada Low Carbon Energy Production In EMAMI LTD India Low Carbon Energy Production In ENERNOC INC USA Low Carbon Energy Production In EPURE INTERNATIONAL Singapore Water, Waste & Pollution Control In EQUINOX MINERALS Australia Energy Efficiency & Management In EXIDE TECHNOLOGIES USA Energy Efficiency & Management In EXTRACT RESOURCES Australia Low Carbon Energy Production In FRONTEER DEVELOPMENT Canada Low Carbon Energy Production In FUEL SYSTEMS SOLUT USA Energy Efficiency & Management In JAIPRAKASH HYDRO PWR India Low Carbon Energy Production In KALPATARU POWER TRAN India Low Carbon Energy Production In OPTO TECH Taiwan Energy Efficiency & Management In OSAKA TITANIUM TECH Japan Low Carbon Energy Production In POLYPORE INTL INC USA Energy Efficiency & Management In PRAJ INDUSTRIES India Low Carbon Energy Production In RENESOLA UK Low Carbon Energy Production In ROTH & RAU AG Germany Low Carbon Energy Production In SIG UK Energy Efficiency & Management In SOLARFUN POWER ADR USA Low Carbon Energy Production In TRINA SOLAR ADR USA Low Carbon Energy Production In ZOLTEK COS USA Energy Efficiency & Management Out ENVITEC BIOGAS AG Germany Low Carbon Energy Production Out PI POWER INT LTD Austria Financials Note: based on data as of 5 June 2009 Source: HSBC

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Highlights and changes The minimum market capitalisation threshold

is lowered from USD600m to USD500m.

HSBC Investable Climate Change Index now

represents 12 investment themes.

Changes will be effective as of the close of

business on 19 June 2009.

** http://web.sebi.gov.in/press/2007/2007286.html

HSBC Global Investable Climate Change index quarterly changes

Sector Ins Outs


Note: based on data as of 5 June 2009. Source: HSBC.

New Investable composition Investable index new composition as of June 2009



Bio-Energy 2 1.52 Geothermal/Hydro/Marine Gas 1 1.01 Integrated Power 5 19.40 Nuclear 5 20.09 Solar 6 7.91 Wind 4 10.97


Buildings Efficiency 2 1.30 Energy Storage 2 1.67 Industrial Efficiency 1 0.45 Transport Efficiency 6 9.76


Waste 5 10.66 Water 11 15.27

Total 50 100


HSBC Investable Climate Change Index

Minimum market capitalisation threshold raised to USD700m


Indian stocks continue to be excluded from this index**

Quarterly changes to the HSBC Investable Climate Change Index


In AQUARIUS PLATINUM UK Energy Efficiency & Management In SIG UK Energy Efficiency & Management Out AES TIETE SA PREF A Brazil Low Carbon Energy Production Out EDF ENERGIES NOUV France Low Carbon Energy Production Note: based on data as of 5 June 2009 Source: HSBC

http://web.sebi.gov.in/press/2007/2007286.html

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Highlights and changes HSBC Global Climate Change 100 Index now

represents 16 investment themes.

Changes will be effective as of the close of

business on 19 June 2009.

Quarterly changes to the 100 Index are

outlined in the table below.

** http://web.sebi.gov.in/press/2007/2007286.html

Sector Ins Outs



New 100 composition 100 index new composition as of June 2009



Bio-Energy 4 1.55 Diversified Renewable 4 2.03 Gas 3 2.75 Hydro/Geothermal/Marine 1 0.13 Integrated Power 17 28.45 Nuclear 10 14.14 Solar 13 6.71 Wind 4 4.25


Buildings Efficiency 6 4.31 Energy Storage 12 17.84 Fuelcells 5 4.48 Industrial Efficiency 1 0.23 Transport Efficiency 2 0.78


Pollution Control 1 0.41 Waste 5 4.92 Water 12 7.05

Total 100 100

Source: HSBC, Note: based on data as of June 2009

HSBC Climate Change 100 Index


Changes will be effective as of the close of business on

19 June 2009

Indian stocks continue to be excluded from this index**

Quarterly changes to the HSBC Global Climate Change 100 Index


In ROHM Japan Energy Efficiency & Management In SAMSUNG SDI Korea Energy Efficiency & Management In YINGLI GREEN ENE ADR China Low Carbon Energy Production Out EDP ENERGIAS PORT Portugal Low Carbon Energy Production Out ENERGY CONV DEVICE USA Energy Efficiency & Management Out SUNPOWER CORP 'A' USA Low Carbon Energy Production Source: HSBC, Note: based on data as of 6 June 2009

HSBC Global Climate Change 100 index quarterly changes

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Notes

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Notes

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Disclosure appendix Analyst certification The following analyst(s), who is(are) primarily responsible for this report, certifies(y) that the opinion(s) on the subject security(ies) or issuer(s) and any other views or forecasts expressed herein accurately reflect their personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report: Joaquim De Lima, Vijay Sumon, Nick Robins and Roshan Padamadan

Important disclosures

Stock ratings and basis for financial analysis HSBC believes that investors utilise various disciplines and investment horizons when making investment decisions, which depend largely on individual circumstances such as the investor's existing holdings, risk tolerance and other considerations. Given these differences, HSBC has two principal aims in its equity research: 1) to identify long-term investment opportunities based on particular themes or ideas that may affect the future earnings or cash flows of companies on a 12 month time horizon; and 2) from time to time to identify short-term investment opportunities that are derived from fundamental, quantitative, technical or event-driven techniques on a 0-3 month time horizon and which may differ from our long-term investment rating. HSBC has assigned ratings for its long-term investment opportunities as described below.

This report addresses only the long-term investment opportunities of the companies referred to in the report. As and when HSBC publishes a short-term trading idea the stocks to which these relate are identified on the website at www.hsbcnet.com/research. Details of these short-term investment opportunities can be found under the Reports section of this website.

HSBC believes an investor's decision to buy or sell a stock should depend on individual circumstances such as the investor's existing holdings and other considerations. Different securities firms use a variety of ratings terms as well as different rating systems to describe their recommendations. Investors should carefully read the definitions of the ratings used in each research report. In addition, because research reports contain more complete information concerning the analysts' views, investors should carefully read the entire research report and should not infer its contents from the rating. In any case, ratings should not be used or relied on in isolation as investment advice.

Rating definitions for long-term investment opportunities

Stock ratings HSBC assigns ratings to its stocks in this sector on the following basis:

For each stock we set a required rate of return calculated from the risk free rate for that stock's domestic, or as appropriate, regional market and the relevant equity risk premium established by our strategy team. The price target for a stock represents the value the analyst expects the stock to reach over our performance horizon. The performance horizon is 12 months. For a stock to be classified as Overweight, the implied return must exceed the required return by at least 5 percentage points over the next 12 months (or 10 percentage points for a stock classified as Volatile*). For a stock to be classified as Underweight, the stock must be expected to underperform its required return by at least 5 percentage points over the next 12 months (or 10 percentage points for a stock classified as Volatile*). Stocks between these bands are classified as Neutral.

Our ratings are re-calibrated against these bands at the time of any 'material change' (initiation of coverage, change of volatility status or change in price target). Notwithstanding this, and although ratings are subject to ongoing management review, expected returns will be permitted to move outside the bands as a result of normal share price fluctuations without necessarily triggering a rating change.

*A stock will be classified as volatile if its historical volatility has exceeded 40%, if the stock has been listed for less than 12 months (unless it is in an industry or sector where volatility is low) or if the analyst expects significant volatility. However,

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stocks which we do not consider volatile may in fact also behave in such a way. Historical volatility is defined as the past month's average of the daily 365-day moving average volatilities. In order to avoid misleadingly frequent changes in rating, however, volatility has to move 2.5 percentage points past the 40% benchmark in either direction for a stock's status to change.

Prior to this, from 7 June 2005 HSBC applied a ratings structure which ranked the stocks according to their notional target price vs current market price and then categorised (approximately) the top 40% as Overweight, the next 40% as Neutral and the last 20% as Underweight. The performance horizon is 2 years. The notional target price was defined as the mid-point of the analysts' valuation for a stock.

From 15 November 2004 to 7 June 2005, HSBC carried no ratings and concentrated on long-term thematic reports which identified themes and trends in industries, but did not make a conclusion as to the investment action that potential investors should take.

Prior to 15 November 2004, HSBC's ratings system was based upon a two-stage recommendation structure: a combination of the analysts' view on the stock relative to its sector and the sector call relative to the market, together giving a view on the stock relative to the market. The sector call was the responsibility of the strategy team, set in co-operation with the analysts. For other companies, HSBC showed a recommendation relative to the market. The performance horizon was 6-12 months. The target price was the level the stock should have traded at if the market accepted the analysts' view of the stock.

Rating distribution for long-term investment opportunities

As of 10 June 2009, the distribution of all ratings published is as follows: Overweight (Buy) 34% (34% of these provided with Investment Banking Services)

Neutral (Hold) 39% (31% of these provided with Investment Banking Services)

Underweight (Sell) 27% (27% of these provided with Investment Banking Services)

Analysts are paid in part by reference to the profitability of HSBC which includes investment banking revenues.

For disclosures in respect of any company, please see the most recently published report on that company available at www.hsbcnet.com/research.

* HSBC Legal Entities are listed in the Disclaimer below.

Additional disclosures 1 This report is dated as at 11 June 2009. 2 All market data included in this report are dated as at close 05 June 2009, unless otherwise indicated in the report. 3 HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its

Research business. HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research operate and have a management reporting line independent of HSBC's Investment Banking business. Chinese Wall procedures are in place between the Investment Banking and Research businesses to ensure that any confidential and/or price sensitive information is handled in an appropriate manner.

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Disclaimer * Legal entities as at 22 October 2008 'UAE' HSBC Bank Middle East Limited, Dubai; 'HK' The Hongkong and Shanghai Banking Corporation Limited, Hong Kong; 'TW' HSBC Securities (Taiwan) Corporation Limited; 'CA' HSBC Securities (Canada) Inc, Toronto; HSBC Bank, Paris branch; HSBC France; 'DE' HSBC Trinkaus & Burkhardt AG, Dusseldorf; 000 HSBC Bank (RR), Moscow; 'IN' HSBC Securities and Capital Markets (India) Private Limited, Mumbai; 'JP' HSBC Securities (Japan) Limited, Tokyo; 'EG' HSBC Securities Egypt S.A.E., Cairo; 'CN' HSBC Investment Bank Asia Limited, Beijing Representative Office; The Hongkong and Shanghai Banking Corporation Limited, Singapore branch; The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch; HSBC Securities (South Africa) (Pty) Ltd, Johannesburg; 'GR' HSBC Pantelakis Securities S.A., Athens; HSBC Bank plc, London, Madrid, Milan, Stockholm, Tel Aviv, 'US' HSBC Securities (USA) Inc, New York; HSBC Yatirim Menkul Degerler A.S., Istanbul; HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, HSBC Bank Brasil S.A. - Banco Múltiplo, HSBC Bank Australia Limited, HSBC Bank Argentina S.A., HSBC Saudi Arabia Limited.

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Website: www.research.hsbc.com

In the UK this document has been issued and approved by HSBC Bank plc (“HSBC”) for the information of its Clients (as defined in the Rules of FSA) and those of its affiliates only. It is not intended for Retail Clients in the UK. If this research is received by a customer of an affiliate of HSBC, its provision to the recipient is subject to the terms of business in place between the recipient and such affiliate. HSBC Securities (USA) Inc. accepts responsibility for the content of this research report prepared by its non-US foreign affiliate. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security discussed herein should do so with HSBC Securities (USA) Inc. in the United States and not with its non-US foreign affiliate, the issuer of this report. In Singapore, this publication is distributed by The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch for the general information of institutional investors or other persons specified in Sections 274 and 304 of the Securities and Futures Act (Chapter 289) (“SFA”) and accredited investors and other persons in accordance with the conditions specified in Sections 275 and 305 of the SFA. This publication is not a prospectus as defined in the SFA. It may not be further distributed in whole or in part for any purpose. The Hongkong and Shanghai Banking Corporation Limited Singapore Branch is regulated by the Monetary Authority of Singapore. In Australia, this publication has been distributed by The Hongkong and Shanghai Banking Corporation Limited (ABN 65 117 925 970, AFSL 301737) for the general information of its “wholesale” customers (as defined in the Corporations Act 2001). Where distributed to retail customers, this research is distributed by HSBC Bank Australia Limited (AFSL No. 232595). These respective entities make no representations that the products or services mentioned in this document are available to persons in Australia or are necessarily suitable for any particular person or appropriate in accordance with local law. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. This publication has been distributed in Japan by HSBC Securities (Japan) Limited. It may not be further distributed, in whole or in part, for any purpose. In Hong Kong, this document has been distributed by The Hongkong and Shanghai Banking Corporation Limited in the conduct of its Hong Kong regulated business for the information of its institutional and professional customers; it is not intended for and should not be distributed to retail customers in Hong Kong. The Hongkong and Shanghai Banking Corporation Limited makes no representations that the products or services mentioned in this document are available to persons in Hong Kong or are necessarily suitable for any particular person or appropriate in accordance with local law. All inquiries by such recipients must be directed to The Hongkong and Shanghai Banking Corporation Limited. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. HSBC has based this document on information obtained from sources it believes to be reliable but which it has not independently verified; HSBC makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice. 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HSBC Bank plc is registered in England No 14259, is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange. © Copyright. HSBC Bank plc 2009, ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Bank plc. MICA (P) 258/09/2008

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HSBC Climate Change Indices

Joaquim de Lima Global Head of Equity Quantitative Research +44 20 7991 6836 [email protected]

Vijay Sumon +44 20 7991 6839 [email protected]

Freddie Siu +852 2996 6558 [email protected]

Alternative Energy

Robert Clover Global Sector Head, Alternative Energy +44 20 7991 6741 [email protected]

James Magness +44 20 7991 3464 [email protected]

Charanjit Singh +91 80 3001 3776 [email protected]

Christine Wang +8862 8725 6024 [email protected]

Burkhard Weiss +49 211 910 3722 [email protected]

Christian Rath +49 211 910 3049 [email protected]

Murielle André-Pinard +33 1 56 52 43 16 [email protected]

Vangelis Karanikas +30 210 6965 211 [email protected]

Pedro Herrera +1 212 525 5126 [email protected]

Climate Change Centre of Excellence

Nick Robins +44 20 799 16778 [email protected]

Roshan F Padamadan, CFA +44 207 991 6715 [email protected]

Credit Research

Madeleine King. CFA +44 20 7991 6789 [email protected]

Utilities

Verity Mitchell +44 20 7991 6840 [email protected]

Global Alternative Energy & Climate Change Research Team

mailto:[email protected]

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