Saker Nusseibeh: Investing sustainably amid rising rates

Many reasons for inflation

clock • 4 min read
Saker Nusseibeh of Federated Hermes

Saker Nusseibeh of Federated Hermes

'Greenflation’ is not the only cause of rising inflation, and the cost of inaction on the net zero transition will be far greater in the long run. With support for green finance here to stay, any negative inflationary impact on securities such as green bonds is likely to be temporary.

As inflation rises around the world, forcing major central banks to consider increasing interest rates after an extended period of ‘lower for longer', critics of the net zero transition have sought to blame ‘greenflation'. They argue commodity prices are surging because materials such as copper, tin, nickel, cobalt, and aluminium are in high demand for use in developing greener energy technologies. Meanwhile supply of these commodities is being restricted, due to the environmental, social and governance concerns that come with constructing new mines. Not just greenflation Blaming th...

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