Shah highlighted four disparate factors that will contribute to upward pressure on the cost of doing more environmentally-friendly business, dubbed environmental inflation or "en-flation."
Delegates walk past a screen during the UN Climate Change Conference in Glasgow, Scotland, Britain, November 1, 2021.Inflationary pressures arising from efforts by governments and businesses to adhere to net-zero initiatives will extend far beyond energy prices, according to Seema Shah, chief strategist at Principal Global Investors.
However, in a new research note alongside the COP26 climate conference and seen by CNBC, Shah argued that "the rapidly changing way that companies across all sectors factor environmental considerations into their business models – and the rising costs of doing so – are potentially still being underappreciated by some investors."
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