“The Inflationary Implications of ESG and the Climate Transition – Some Considerations”, James Aitken, Aitken Advisors

David Osman of the IRF is joined by James Aitken, the founder of Aitken Advisors, which is based in London.

Consumers are becoming increasingly focused on ESG investing, not just for environmental reasons, but also for social and governance matters. This, along with increasing ESG financial regulation, is putting greater pressures on the investment decisions of institutional investors. Given the strong political momentum behind climate change concerns, James Aitken points out that inflows into ESG and climate related funds are likely to increase substantially in the years ahead. James warns that the ESG and climate tsunami have barely begun to ripple through the world economy and global financial markets: it could be an important feature of them for years to come. He argues that ESG, inflation and climate transition are 3 sides of the same coin. This has important investment implications for asset allocators, particularly with respect to central bank policies, the major oil & gas companies and the future inclusion of China in a global portfolio.