Policy normalisation has come to the forefront over the past few weeks, dominating the headlines and markets across the globe

In Europe, an unreliable supply of Russian gas, falling investments in thermal energy and maintenance work on nuclear power plants led to a sharp rise in gas and electricity prices across the continent before they fell in December. Higher energy prices are fuelling the rise in inflation in the region.

Over the last month, the investment environment has been influenced by the consequences of the Omicron variant and by central banks adopting more hawkish rhetoric.

The markets navigated a bumpy road to the end of the year

Nachhaltige Anleihen, ein schnell wachsender Sektor, sind darauf ausgelegt, soziale Projekte zu finanzieren und/oder Nachhaltigkeitsziele aufzuzeigen

The rise of inflation has brought up once again the question of costs and benefits relating to addressing climate change

We are at a tipping point not only in terms of credibility but also reversibility of the impact we made on our planet, its climate and its atmosphere

Bondholders are the suppliers of new capital for investment and growth. Shareholders can vote, but the supply of retained earnings or new equity issuances is small in comparison with debt funding. Investors must behave Responsibly in their capital allocation. And we, at Candriam, have the Conviction that including Climate in the decision improves risk-adjusted returns. 

Humans are not the apex predator, although we act that way. Nature may fight back and demonstrate how weak we really are. Our Sovereign Sustainability model,  designed for investment analysis, also offers holistic insights as well as numerical. Perhaps both our investments, and our future, come down to something quite simple --  Don't fight Mother Nature.