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