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Investors are not pricing in decarbonisation

ESG investors are not factoring in the full ramifications of a low-carbon economy

Investors are not pricing in decarbonisation
Photo: Getty Images

Decarbonisation is at the top of the agenda for many governments and corporates, and the pandemic has accelerated global efforts.

A world with significantly lower carbon intensity — the goal we are moving towards – will upend global macro dynamics, particularly in global exchange rates and commodity prices, as well as how geopolitical risk is priced. All of these factors are outside investors’ current thinking on ESG.

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