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After a dip in October, the inflation rate is back to a 30-year high, according to ABS statistics for November that put into doubt hopes the Reserve Bank of Australia will pause rate hikes soon.

The rush to decarbonise the economy and the ASX risks leaving workers and communities behind, and investors exposed to “significant losses” and greater social support costs.

While 2022 was a tough year for ethical and sustainable investors, the multiple compression that occurred – and a possible moderation of inflation – means they have plenty to look forward to in 2023.

Household wealth in September recorded its third largest quarterly decline since the Australian Bureau of Statistics began keeping records in 1989. And wealth is likely to keep falling in the coming quarters, as the lagged effects of interest rate hikes flow through.

What investors often misunderstand is that despite having ‘environmental’ in its description, ESG integration screens often don’t exclude companies that damage the environment according to the 2022 Sustainability Report.

Private debt has several key advantages over equities and other forms of fixed income investing when it comes to influencing companies in the development and implementation of ESG commitments.

A new International Energy Agency report projects global renewable energy growth in the next five years will match that of the last 20, with renewables also set to overtake coal as the largest electricity source by 2025. Australian investors won’t have to look far to find stocks poised to benefit from this momentum shift.

“Sometimes, the market thinks we prioritise ESG factors above investment fundamentals,” says Perennial’s Emilie O’Neill. “But the reality is that it’s just another investment lens.”

For ESG discourse to matter, it must translate into quantifiable action. That means broadening the conversation beyond the close circle of sustainability converts and having tough conversations about capital flows.

In a special sitting Thursday, Parliament will vote on proposed price caps for coal and gas, which the government says will help curb soaring energy bills. Producers, which oppose the plan, have already seen their share prices drop.

Speaking on a fireside chat during The Inside Network’s recent ESG event in Tasmania, Nick Langley said that while infrastructure assets will continue carrying the burden of inflation there is likely more to be concerned about with REITS, both in the dominant US market and around the world.

Alternative investment manager Blackstone’s decision to limit redemptions from its $103 billion real estate investment trust has investors questioning whether such funds can continue to maintain strong performance as the broader real estate market deteriorates.