Celebrating Earth Day 2025

Earth Day is celebrated on 22 April 2025, a day dedicated to showing support for environmental protection. Since its inception in 1970, Earth Day has grown into a global movement, with events reaching 1 billion people in more than 190 countries. This year’s theme, “OUR POWER, OUR PLANET,” emphasises the urgent need to ramp up action towards meeting the ambitious goal of tripling renewable energy by 2030.

This goal was committed to by close to 130 governments back in 2023. The target aligns with the renewable energy requirements necessary to limit global warming to 1.5˚C. Fortunately, we are witnessing a significant shift globally, with clean energy entering the energy system at record rates. For the past two decades, this trend has continued, with substantial new renewable capacity added each year, bringing the total to a new level each year.

Despite these advancements, fossil fuels still met a large portion of the global energy demand in recent years. However, according to the International Energy Agency, investment flows to clean energy projects are approaching USD 2 trillion annually, nearly double the combined amount spent on new oil, gas and coal supply. With the decreasing costs of most clean technologies, we can expect non-renewable generation to decline further and enough new clean capacity to meet growing demand needs.

The demand for energy is indeed growing. In 2024, electricity consumption increased by nearly twice the annual average over the past decade. This surge is driven by the increased need for cooling due to more extreme temperatures, the electrification of transport, the expansion of the data centre sector and increased industrial consumption.

So, what can you do to support the growth of a cleaner future? At home, you can choose products that are more energy-efficient or those with proven sustainability credentials. Consider installing solar panels or using renewable energy sources if available. Simple actions like using LED lighting, investing in smart thermostats and ensuring your home is well-insulated can make a significant difference. Reducing water usage and recycling can also contribute to a more sustainable lifestyle. Every action, no matter how small, contributes to protecting our planet.

Your actions and values can translate into your investment portfolio too. By incorporating sustainability considerations into your investments, you can ensure that you are supporting companies contributing to a cleaner future in a more sustainable manner. For example, consider companies that enable the transition to renewable energy, from those producing essential components to those generating clean energy. The opportunities are endless.

We have a proprietary framework for evaluating companies based on sustainability, which we use to assist our clients in constructing portfolios that align with their individual values. By investing in sustainable companies, you are not only contributing to a better future but also positioning yourself to benefit from sustainable themes such as the growing demand for renewable energy.

If you would like to know more, please get in touch with your advisers. We have a wealth of excellent material and resources for clients to consider, including in-house sustainability reports on individual listed companies from New Zealand and around the world. Let’s harness our power to protect our planet and drive the transition to a sustainable energy future.

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