Sustainability, Energy Transition, ESG | Weekly Thematic

Runways to Brick Walls: ESG Fund Flows Pave Paths To Problems
September 22, 2021
Commodities Mentioned:
Companies Mentioned:
Shell, Chevron, ConocoPhillips, Gevo, Aemetis, Darling Industries, Fulcrum Bioenergy, Deloitte, SABIC, ExxonMobil, Dow, Linde, INEOS, CP Chemical, LyondellBasell, Talos, Denbury, Mitsubishi Corporation, CF Industries

C-MACC Weekly “CRETER” (Climate etc.)

Runways to Brick Walls: ESG Fund Flows Pave Paths To Problems

  • ESG funds may be approaching a proverbial brick wall, as further fund inflows could collide with much tighter regulations around definitions.
  • This development could send the more obvious ESG darlings higher but lay waste to the “almost” stocks within ESG funds largely for “padding”.
  • We hope that the fallout creates “emerging” ESG funds – looking for companies that could meaningfully change – this would help with a broader climate agenda.
  • Separately, we look at the disconnect between the bio-diesel ambitions of many refiners and the gaping opportunity in adjacent sustainable aviation fuel.
  • Otherwise, we look at the Houston and other potential carbon capture hubs, inflation in renewable energy, and unintended consequences of the Shell litigation.

See PDF below for all charts 

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