“Commodities will remain an essential component of the economy. Investors should note that there is no transition pathway to a climate-neutral world that does not involve commodities” - Mercer
Commodity Investing in the Age of ESG and Inflation.
Auspice White Paper.
While many would agree that commodity related investments are amongst the best ways to protect against inflation risk, it has become complicated for many investors given ESG considerations. We don't believe it has to be and with better understanding, this risk becomes an opportunity.
To date there has been little discussion about commodity futures within ESG frameworks - neither the OECD nor the UNPRI provides comprehensive guidance on commodity futures.
We have researched this, produced something that is unique, and believe may be valuable to you and for the industry. To be clear this does not refer to or promote Auspice products.
Commodity Futures and ESG.
Auspice Blog.
The Auspice November 2021 Blog post provides a summarized review of one of the core arguments of the “Commodity Investing in the Age of ESG and Inflation” white paper, that futures offer exposure to commodities with zero environmental impact.
Media and Publications
AIMA Journal - Edition 129, Q1 2022
A summary post of the Auspice white paper “Commodity Investing in the Age of ESG and Inflation” was featured in the Q1 2022 Edition 129 of the AIMA Journal.
March 22, 2022. Read more.
J.P. Morgan Center for Commodities - Global Commodities Applied Research Digest (GCARD)
The Auspice white paper “Commodity Investing in the Age of ESG and Inflation” was featured in the March 2022 edition of the GCARD.
Further GCARD research on ESG and commodities available here.
February 17, 2022. Read more.
CAIA Association - Commodity Futures and ESG
“Futures do not affect consumption or production – they affect exposure to risk, and these are fundamentally different. The ability to invest in an instrument that’s value is affected by nothing other than the underlying price of the commodity itself is undeniably the lowest impact method of attaining valuable commodity risk exposure.”
Summary post derived from the Auspice Commodities and ESG White Paper.
January 11, 2022. Read more.
Canadian Energy Centre - Canada’s ‘huge opportunity’ as Europe, South Korea to label natural gas green. LNG from Canada can help the world move faster to reduce emissions.
“Canadian energy companies have demonstrated leadership in developing greener energy infrastructure.”
“LNG is not a 100 percent solution to our climate problem, but it gets us significantly closer to our goals and should be prioritized versus relying on foreign countries with higher emissions and poor track records.” - Tim Pickering, Auspice Capital President and CIO.
January 5, 2022. Read more.
Climate Transformed - Commodity Investing in the age of ESG and Inflation
Paul Krake, host of Climate Transformed, chats with Brennan Basnicki, partner at Auspice Capital Advisors, about how investing in commodities fits within an ESG framework as well as whether commodities are an ideal hedge against inflation.
December 8, 2021. See more.
Wealth Professional - Are Futures the Way Forward for ESG-minded Commodity Investors?
“People have this idea that commodities and ESG are just diametrically opposed, and we get some of that. We've always said producing commodities, particularly in the mining and extraction business, is inherently an invasive process,” Auspice Capital President and CIO Tim Pickering, told Wealth Professional. “But the question is, how do you go about gaining that commodity exposure as an investor?”
December 2, 2021. Read more.