ANALYSIS SUMMARY by Mathew Carr

OCT. 15, 2021 — Opportunities and headwinds.

Climate policy has implications for many companies and sectors, investment bank Morgan Stanley says in an emailed research note ahead of the Glasgow climate talks later this month.

“We list 100 Overweight-rated stocks that our analysts believe could benefit
from more stringent decarbonization targets. We also highlight 10 sectors facing
headwinds in the coming years, with 34 Underweight-rated stocks”

Beneficiaries:
The COP 26 Presidency has highlighted four actions for securing net zero by mid century
and keeping 1.5 degrees within reach, the investment bank said.

Overweight-rated stocks that the bank’s analysts believe could benefit from
these interrelated themes.

1. accelerate the phase-out of coal
   
2. curtail deforestation
   
3. speed up the switch to electric vehicles
   
4. encourage investment in renewables
   
   Some of the names listed may surprise some people, eg Greta: eg Exxon Mobil, Chevron, Occidental
   
   Here is the complete list:

Sectors & Stocks Facing Decarbonisation Headwinds

“Below we summarise the potential risks and highlight some stocks in these sectors that are currently rated Underweight,” the bank said.

Full list, sliced and diced by region:

(more to come)