IN FOCUS6-8 min read

What would be the environmental and social impact of a Biden presidency?

We look at the key elements of the Biden climate agenda and its sectoral implications, as well as the social element of his campaign.

29/10/2020
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Read full reportThe environmental and social impact of a Biden presidency
7 pages1321 KB

Authors

Catherine Macaulay
Impact Investment Lead

As Americans prepare to head for the polls next Tuesday, the result of a hotly-contested presidential race hangs in the balance. However, there is a 65% chance that the next US president will be Democratic candidate Joe Biden.

The implications of a Biden victory for markets, the economy, the country’s handling of the pandemic, and international relations have been much discussed elsewhere. But as ESG (environmental, social and governance) investors, we’ve focused specifically on the implications for the “E” and “S” of our favourite acronym.

We found that they could be profound.

A sweeping Democrat victory in November would result in a step-change in US climate policy. Biden would re-commit the country to the Paris Agreement and to a net zero emissions reduction target by 2050.

This would mean significant investment ($2 trillion) into green industries and technologies, and it would also require tighter regulation of higher-emitting industries, including oil and gas, utilities and autos.

Beyond the climate agenda, a Biden victory could have significant implications for consumer, healthcare and tech companies as Biden seeks to strengthen labour protection, improve access and affordability in healthcare and regulate big tech.

Regardless of the election outcome, we expect an increased focus on on-shoring production and jobs to the US to benefit domestic companies and suppliers. This will have negative implications for international suppliers with high exposure to the US.

Our full research is available as a PDF below.

Read full reportThe environmental and social impact of a Biden presidency
7 pages1321 KB

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Authors

Catherine Macaulay
Impact Investment Lead

Topics

In Focus
Equities
Sustainability
Thematics
2020
US
Global
Climate Change
ESG
Environmental
Public Policy

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

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