Global Sustainability "ESG news & views, Vol. 56, June 2026" Kalb

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Global Sustainability "ESG news & views, Vol. 56, June 2026" Kalb

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Global Sustainability Equities

GlobalESG news & views, Vol. 56, June 2026

Global Sustainability

Victoria Kalb

News & Views (continued on P4) Analyst

vicki.kalb@ubs.com

+65-6495 4584

Europe’s energy transition: a capex cycle still underappreciated by the market

Alisa Dudchak

Delivering Europe’s energy transition requires c.€600-660bn of annual investment

Analyst

through 2030, based on European Commission estimates, implying a structural step- alisa.dudchak@ubs.com

change in capital deployment across the energy system. The key point, in our view, is not +44-20-7567 0844

simply the size of the investment requirement, but the duration and breadth of the cycle.

We think investors may still be underestimating how long and wide this capex cycle

could run, as the transition moves beyond renewable generation into grids, storage, ESG

electrification and the decarbonisation of high-emitting sectors. We translate this Environmental

system-wide capex cycle into a practical investment framework across low-carbon Socialleaders, enablers and transitioners. Based on this framework, we construct a focused GovernanceM

list of 31 European equities positioned to benefit from the energy transition. UBS

HOLT analysis points to improving returns, with forward CFROI above historical levels

and not yet fully reflected in market prices.

+ Europe’s energy transition: a capex cycle still underappreciated by the market

(slides)

El Niño: Expected Country & Company Impacts

2026/27 El Niño could be historic, though impacts remain uncertain

The 1997-98 event is estimated to have caused c.$5.7tn in global losses