Tariffs, deglobalisation and the implications on sustainability

Conventional wisdom suggests tariffs leads to demand destruction, which in-turn could ease environmental impacts (through lower carbon intensity that lower GDP growth brings on a first order basis). Having said that, should there be a re-allocation of production, onshore or to other trade partners – due to the forces of deglobalisation – then the energy and/or electricity mix of the alternative country’s matter.

In this week’s podcast, Ehsan Khoman, Head of Research – Commodities, ESG and Emerging Markets (EMEA), offers a list of considerations for corporates and investors looking to assess sustainability impacts of recent tariff developments.