Electrification of transportation - a Solution for the Ecological Transition

Published on 12/10/2019

Electrifying the transportation system represents an upheaval for the automotive industry and the entire transportation sector. The upcoming transition will force companies to reexamine how they think about mobility and to develop new and evolving technologies to meet the challenges it brings. As the transition towards electrifying our transportation systems begins to gather momentum, this study aims to identify the major challenges and solutions of the electric vehicle sector, and to identify the parts of the sector with high added value in order to support companies which will play key roles in the energy transition.

Mirova

Editorial

Imagine it is 2050 and you are explaining to your grandchildren what life was like before electric cars.

In cities everywhere you could hear motors purring. Car aficionados could recognize an engine’s type by its rumble alone, and the irritation brought on by a motorcycle revving close by was part of the tapestry of daily life in a city. We would also tell them about the pollution that filled our lungs while travelling on foot, by bike, or even by car. Perhaps we would even feel a little nostalgic when describing the wafting fumes we inhaled while filling the tank at the gas station. And finally, we would talk about how families used to own one, two, even three cars. About how things were not the same back then. How we did not know about CO2. About how we did not believe that we could ever run out of oil. About how oil was a sign of wealth and prosperity and some even considered it the investment of a lifetime.

And it is likely that at that point our children or our grandchildren would interrupt, exclaiming that they do not understand how we could ever have lived that way, looking at us as if we were dinosaurs.

Today, we are at the brink of an automotive revolution which is going to change people’s daily lives just as cell phones and the internet have. Electrification won’t stop with cars and trucks. Once we have solved the problem of how to store enough energy and hydrogen aboard a vehicle, our entire transportation system will rapidly shift towards electricity.

As responsible investors conscious of the challenges facing society, we want to invest the savings entrusted to us in companies committed to this transition: the companies who are building the transportation systems of the future.

Happy reading!

Emmanuelle OSTIARI

Emmanuelle OSTIARI

SRI Analyst