Recent market volatility, the macro environment, changes to corporate sustainability targets and policy uncertainty have challenged sustainability themes globally. At face value, deglobalisation raises decarbonisation costs – some clean technologies are manufactured locally but others have a dominant, global, low-cost supplier that continues to gain cost competitiveness. This thus raises questions over the benefits of local manufacturing versus imports.
In this context, Ehsan Khoman, Head of Research – Commodities, ESG and Emerging Markets (EMEA), discusses what corporates could prioritise from a sustainability lens amid an increasingly deglobalised operating environment. He believes that (1) improving consumer efficiency to reduce consumption intensity and mitigate inflationary pressures as well as (2) the ability to maintain reliable power demand amid aging infrastructure and more extreme weather events by recognising potential downside risks from slowing global growth, could collectively be “efficiency” and “reliability” verticals that can support corporate resiliency in navigating today’s volatility.
The MUFG Global Markets Podcast can be found directly on our MUFG Podbean page or via a number of platforms, including Spotify, Apple, and Stitcher.
