Thursday, 23 May 2024 Reading time : 3 minutes

It is hard to envision our daily lives without energy. From heating in winter and lighting in the dark to charging our smartphones, energy is a fundamental aspect of our lives. We rely on energy both personally and professionally, and demand is increasing. In addition to building new wind farms, there is also great potential in minimising energy losses. But how is energy generated, and where do energy losses occur?

The global effects of climate change are a significant concern for politicians, businesses, and society. The most cost-effective and direct method of reducing greenhouse gas emissions is to save energy or avoid energy losses. There are various forms of energy, including thermal energy, kinetic energy, and electrical energy. The latter is often considered particularly valuable as it can be easily converted into kinetic or thermal energy, for example. This versatility makes it a highly relevant product. Consequently, we also draw electrical energy from the socket. For instance, if we switch on the stove, this energy is converted into thermal energy.

In order to generate electricity, the energy must first be converted from primary energy sources, such as coal, oil, or wind, into secondary energy. This is a transportable form of energy, for instance, in this step, steam is generated from coal by heating water. In the third step, electricity is generated, also known as tertiary energy. The gas drives a turbine, which is connected to a generator that converts the movement of the turbine into electricity. This is then used for lighting, heat generation, or to power electric motors. The global average efficiency of coal is now between 32% and 34%. This equates to a loss of over 65% during the generation of electricity. On average, approximately 60% of the primary energy input is lost along the entire conversion chain up to the final energy output.

Energy efficiency is not only beneficial for the environment, but also financially advantageous due to the reduction in energy costs. Investments in energy efficiency typically generate a positive return on investment within a relatively short period of time. Increasing energy efficiency is becoming an increasingly prominent topic in national and international policy discussions. For instance, the EU recently set a binding target of 11.7% less energy consumption by 2030 for each member state. To achieve this target, it is essential to adopt more efficient methods of using primary energy. It is crucial to prioritize measures in the industrial sector, as this is where the greatest potential for cost-effective increases in energy efficiency lies. There is also significant potential for efficiency gains in the building sector, mobility, lighting, and consumer goods. As a result, companies offering solutions to increase energy efficiency are likely to experience significant growth.

The ZKB MeinIndex Sustainable Energy Efficiency selects companies from the sustainable investment universe of Zürcher Kantonalbank that contribute to energy savings or energy loss avoidance.

ZKB Tracker Certificate on ZKB MeinIndex Sustainable Energieeffizienz Index

 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements.
The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document.
If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen.