From a top-down standpoint, key themes are:
Energy transition (reinforced after the crisis), with opportunities in both equities and green bonds.
Food security across asset classes;
Infrastructure in focus to support the energy transition and the geopolitical re-shoring trend.
Top-down view from macro / geopolitical / regulation
1
Cyclical view and its ESG impact
2
3
Deep dive into key E, S and G subthemes
4
Net zero impact
Commitment towards net zero will be crucial in 2023, as investors will need to accelerate this effort.
A decelerating economy with high inflation tends to favour ESG with a best-in-class approach, to avoid the exclusion of sectors that could benefit from inflation.
Social themes may be back in focus, as the deteriorating labour market and ongoing high inflation will call for more attention towards social well-being.
Search for improvement in E, S and G; look for key material factors on the E, S, and G pillars within each sector, where improvements could lead to value repricing.
Source: Amundi as of 26 October 2022
Source: Amundi as of 26 October 2022
