“ESG is transitory” is the common narrative

Sorry, “inflation is transitory”

ESG is here to stay, right?

But what if ESG is CAUSING inflation

Is inflation still transitory?

“Environmental” in ESG means moving from fossil fuels to renewables

Which is happening

IEEFA.org details 77 financial co’s that are restricting fossil fuel lending to oil & gas co’s, & 145 that have announced divestment from coal-related mining & power

Shell has been ordered by a Dutch Court to reduce net carbon emissions by 45% by 2030

BP has cut Capex by 40% since 2014 as they shift their focus to low carbon electricity & energy

But the world needs oil & if those looking for it can’t;

nor get any funding to find it,

supply will fall & prices will rise, right?

No, we’ll all be driving EV’s

Well, sales of EV’s & PHEVs only comprised 4.2% of the global market in 2020

And an EV uses ~ 80kg of copper – 5x the average car

Don’t forget all the copper used in charging points, wind turbines & solar

Nor all the battery metals like Cobalt, nickel & lithium

“Social” in ESG means fewer sweatshops & on-shoring

all of which comes at a cost

I’m all for ESG – I don’t eat meat, drive an EV and have solar panels

But in this new world, I can’t see how inflation is only “transitory”