ESG: A Bumpy Road to Net Zero

Achieving net zero by 2050 involves a complete change in how energy is produced, transported, and consumed. The green transition hinges on unprecedented deployment of available clean and efficient technologies by 2030. This would require a significant front-loaded capital infusion into green technologies, especially in key sectors such as automobile, electric utilities, mining, and oil & gas. As demand for green projects and products reaches new highs, limited availability of mining capacities and growing emphasis on sustainable procurement of raw materials have led to significant volatility in the prices of critical metals used in green technologies. Moreover, the green transition could lead to job shifts in some sectors in the short term. Therefore, the initial road to net zero is expected to be rather bumpy instead of a smooth transition.