Home / Deeper Thought / Addressing Major Changes Relevant to Long-Term Responsible Investors

Addressing Major Changes Relevant to Long-Term Responsible Investors

Deeper Thought

 As we settle into 2023, we believe long-term responsible investors focused on risk management and opportunity capture, must consider material changes impacting four areas: 

  1. Changes to the global energy system, both in the existing fossil fuel system and in the development of a distributed, lower carbon system, are accelerating and revealing challenges for companies globally. 
  2. Demographic changes continue to impact the workforce and the ultimate size of consumer markets globally; the vast majority of companies have yet to fully adapt to these massive changes. 
  3. Increasing costs, including interest rates, wages and raw materials, present unique challenges to every industry; the result will be greater differentiation between companies that are able to manage their cost structure and improve productivity and those that are less efficient or stranded in high fixed cost models. 
  4. New costs in the form of priced externalities, implemented by governments or through market action, are taking effect serving to raise costs, influence corporate and consumer behavior. 

Contributor




  • Print Article

    Related
    Wagging the dog: Why US Treasuries may no longer be a haven

    Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.

    Rob Prugue | 24th Apr 2025 | More
    Amundi: The fiscal lever returns in an uncertain global order

    Germany’s fiscal expansion may boost economic growth in the long term The ambiguity surrounding US tariffs and their implementation is raising fears among businesses and consumers that could weigh on economic growth over the medium to long term, while having a temporary effect on inflation. Combining this uncertainty with the high valuations in US stocks and the fiscal announcements outside the US, has resulted in the divergence in performances between the US, European and Chinese equities. Amundi presents its latest Global Investment Views.

    Investor Strategy News | 8th Apr 2025 | More
    Does tax deductibility increase retirement saving?

    French tax reform boosted retirement savings, with higher-income, older workers contributing more after the 2019 Loi Pacte introduced pre-tax incentives, according to an Amundi white paper analysing 1.4 million workers.

    Investor Strategy News | 14th Mar 2025 | More
    Popular