Simulation software is used to foresee how product designs will behave and how manufacturing processes will operate in real world environments. It also allows engineers to refine product designs at a stage when the cost of making amendments is minimal. Although not considered “Green IT,” simulation software can be used to design products with reduced environmental impacts. For instance, some of the world’s largest automobile manufacturers utilize Ansys’s software to improve efficiency. General Motors uses Ansys’s software to optimize the efficiency of traction motors in hybrid and electric vehicles. Volvo uses Ansys’s software to evaluate aerodynamic resistance, which is directly related to fuel economy and emissions. The company’s software is also used in other clean tech sectors to design cleaner power plants, pollution control equipment, biodegradable material, and energy efficient electronic circuits. As a result of these positive impacts, Ansys was added to The Cleantech Index in 2010, which further underscores opportunities for the company’s software.
Ansys is a relatively small company in terms of market capitalization and it operates in an industry with minimal direct environmental impacts. Nonetheless, we would like to see Ansys develop an environmental policy and track its direct environmental impacts. We have also asked the company to declassify its board to better align with current best practices in corporate governance.
The Cleantech Index is a modified equally weighted index comprised of stocks (including ADS/ADRs) of publicly traded companies worldwide that are leaders in cleantech innovation and commercial deployment across a broad range of industry sectors: from providing alternative energy and energy efficiency to advanced materials, clean air & water, ecofriendly agriculture/nutrition, clean manufacturing, etc. The Index Provider, Cleantech Indices, LLC considers a company to qualify as a “cleantech company” when the company derives at least 50% of its revenues or operating profits from cleantech businesses.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/14 and may not reflect current opinions or subsequent events.