Copper for green transition

April 17, 2024

When thinking about the green transition and sustainable investments, mining companies might not be the first thing that comes to everybody’s mind. But AuAg is accelerating the green transition by investing in companies that will supply the materials needed for the electrification. One metal that plays a major part in this is copper, which is found in all electronic products. 

There are several ways to invest in copper, and the easiest way is through a commodity fund or by investing directly in mining companies focused on copper extraction. AuAg invests in mining companies with their funds, “AuAg Precious Green” and “AuAg Essential Metals”. 

Our friends Christopher and Eric over at AuAg sat down with us to discuss the recent developments and market outlooks for copper. When asked about the outlook for copper from an investment perspective, their answer was as follows.

The supply of copper is expected to drop 35% by 2040, while at the same time, the demand is expected to double by the needs from renewable power generation and an additional 40% increase is expected from the electrification of transport during the same time. So, from an investment perspective, we see a great long-term case for copper miners where demand is expected to outpace supply.

Our funds are classified as Article 8 funds, meaning that we promote change in the companies we invest in. This is also important in the context of investing in companies that enable the electrification and the green transition. If investing in securing copper supply to support the electrification, it would be counterproductive to invest in companies that are not trying to be sustainable themselves. We use various ESG data suppliers and one of them is Sanctify. Their analytics service helps us monitor the companies we invest in to make better investment decisions. This way, we can contribute to the electrification and green transition while making the mining industry more sustainable.

More information on investing in copper and electrification through AuAg Funds is available here.