‘Brown’ or ‘dirty’ industries could become the most sought-after targets in capital markets. Investors focused on environmental, social and governance factors are concentrating increasingly on achieving the highest impact through transition, rather than on minimising headline risk. They have much to gain from steering corporate shifts to more effective lower-carbon strategies. These more sophisticated and targeted strategies are set to take over today’s dominant tactics of blunt exclusions and integration through blended scores. Over the next two to three years, this could affect market dynamics significantly both in ... (full story)