Sustainability in the age of the grey swan

Grey swan is an event that is possible and known, potentially extremely significant but considered not very likely to happen.

A succession of grey swans has brought in a market environment full of new challenges, impacting countries rich and poor. All this while the world must urgently address the climate emergency. And that can only be achieved through a major transformation of the global economy.

 

Our Sovereign Sustainability Report 2022

How ready countries are to deal with sustainability challenges will inevitably affect their ability to repay debt. But that is only half of the story. Without governments pulling together, nothing will be solved. Sovereign investors can support them in their crucial role – by investing with those sovereign issuers that take sustainability seriously.

Our Sovereign Sustainability framework is designed to help identify such countries. Read our latest Report to check out our sustainability rankings of countries and discover what we believe are today’s biggest themes for each of the four types of capital -natural, human, social and economic – and how they are interconnected:

  • Emissions – our new emissions model examines carbon footprint by industry and energy source, assessing the potential for Net Zero
  • Food production and security – weaponisation of grain exports, droughts and heatwaves are affecting food supply chains (already strained by population growth), in turn impacting diets. On the other hand, changing diets can also increase pressures on food supply.
  • Democratic accountability – autocracies and populist movements are gaining ground. Cooperation seems hardest to achieve when it is most needed for address addressing the climate emergency
  • Energy Transition – energy security has risen to the top of the European agenda governments, and the energy transition should be the centrepiece economic policy for the next 10 years.

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