Get Ready for the Inflationary Pushback to ESG Investing

There's an argument to be made that concerns over inflation could end up complicating or even rolling back recent efforts on green investing.

After all, much of the 'E' in the ‘Environmental, Social and Governance’ trifecta focuses on making dirtier forms of energy more expensive by denying them access to cheap capital to explore and expand, or to invest to improve efficiency. The costs of transitioning to cleaner fuel plus the stranding of polluting alternatives could increase the cost of energy at the same time that food, commodity and other essential prices have been rising.

There's arguably a point at which a preponderance of inflationary pressures may backfire, with people suddenly demanding governments do something (anything!) to ensure access to cheaper energy (never mind whether it's dirty or not).