Energy price volatility has had an obvious impact on ESG portfolios this year, but we also need to consider the longer-term dynamics around energy and commodity markets. Environmental, security and other concerns mean that we are now engaged in a period of energy transition and this will have long-term effects on asset allocation and risk management as well as individual security and sector selection.
- Why this is a commodities “supershift”, not “supercycle”
- Differentiation in volatility between commodities and energy sources
- Concerns around technological development and linked commodities supply
- ESG approaches and the importance of expected future corporate developments