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. 

  • Print Article

    Franklin Templeton: Fixed Income Views

    The Fixed Income team no longer projects a technical recession in the United States, and the trajectory of disinflation in both the United States and euro area will flatten—primarily due to wage pressures stemming from record low unemployment—and central banks are thus likely to keep rates higher for longer.

    Investor Strategy News | 21st Sep 2023 | More
    Emerging Market Green Bonds 

    This fifth edition of the ‘Emerging Market Green Bonds Report’ reviews key green, social, sustainability, and sustainability-linked (GSSS) bond market trends in 2022 and outlines our expectations for 2023 and beyond. It also discusses the implications for the asset class of recent developments in policy, regulation, and technology. As in the previous four editions, this…

    Investor Strategy News | 13th Sep 2023 | More
    Franklin Templeton analyses the rising corporate and household debt wave

    In our Deep Water Waves publication, we identified several powerful, connected and long-duration factors that will have a significant impact on investment returns over the next decades. One of these is the debt wave, driven primarily by a combination of economic, geopolitical and demographic pressures.

    Franklin Templeton | 31st Aug 2023 | More