Page 12 - DIY Investor Magazine | Issue 30
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  This could have a knock-on effect for oil prices globally given the importance of European energy majors to supplies.
It’s clear there are potential wider consequences for all stakeholders, including potentially higher inflation and more restrictive monetary policies such as higher interest rates.
These all need to be carefully thought through.
Engaging and encouraging the energy groups to accelerate investment is a much better approach. The transition is going to take time.
We know there needs to be significant technological innovation to achieve net zero in GHG emissions by 2050. A rushed or disorderly transition is in nobody’s interests.
In Shell and BP, UK investors have two major global energy companies which are both relatively well advanced with their transition strategies versus US peers, for instance.
They have already made significant commitments to deploy capital to make the required changes happen. Now is the time for a calm and sensible approach to a complex challenge, in the interests of all stakeholders.
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This article was published in August 2021.
Any company references are for illustrative purposes only and are not a recommendation to buy and/or sell, or an opinion as to the value of that company’s shares.
The article is not intended to provide, and should not be relied on, for investment advice or research. If you are unsure as to the suitability of any investment, please speak to an independent financial adviser.
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