In the latest episode of Global Perspectives, Head of Global Sustainable Equities Hamish Chamberlayne and Portfolio Manager Aaron Scully join Adam Hetts, Global Head of Portfolio Construction and Strategy. The trio dig deeper into sustainable investing, discussing how ESG analysis is more than just a "score" and how sustainable investing truly impacts the risk and return of all investors’ portfolios.
- ESG analysis should consider the physical and transition risks associated with climate change. Transition risk is the risk that a company’s business model will not adapt to the move toward a green and clean economy. Meanwhile, the physical risks of climate change go beyond hurricanes and floods and should consider where a company’s assets are located and what this means for its business.
- There are many examples of technology driving productivity and being deflationary. In many cases, renewable energy is cheaper than traditional thermal generation for electricity. We expect the price of renewable energy to continue to come down and the adoption of renewal energy to increase, which should be deflationary over time.
- We are standing at the beginning of what appears to be a transformational decade with an expected acceleration in investment and deployment of clean technologies across multiple sectors and industries. We believe that transformations can be driven by decarbonization.