ESG, Recycling, & Climate | Monthly Thematic Piece

Back In A Holding Pattern – Concerning For Medium-Term Supply

November 10, 2021

Products Mentioned:
Carbon, Hydrogen, Oil, Natural Gas/Methane, Corn, Copper, Ethylene, Polymers, LNG, Cement, Aluminum, Steel, Fertilizer

Companies Mentioned:
Air Products, Air Liquide, Linde, Dow, Shell, Phillips 66, ExxonMobil, GE, Morningstar

Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing

A likely by-product of the lack of firm commitments at COP26 will be hesitancy to deploy expansion capital – leading to more material & energy shortages.
Companies remain hesitant to deploy capital in industries with significant emissions because of shareholder pressure and more challenging capital markets.
The Global Economy should grow, and renewable energy additions are unlikely to keep pace. Renewable material additions are progressing even more slowly.
Even with broad agreement on carbon values and support for cleaner fossil fuels, we are unlikely to get investments moving fast enough to prevent shortages.
Otherwise, we look at more clean hydrogen, the continued rise of a poorly regulated ESG investment base, food/agriculture, and carbon values – again.

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