Chris Iggo (AXA IM): A new commodity boom 07.05.2021 - Commodity prices are booming. This is consistent with strong growth, equity outperformance and rising long-term yields. It is also a reason why people are worried about inflation. One thing for investors to think about is the commodity intensity of the carbon transition - we need different natural resources to oil, gas and coal - but the needs are still significant. This has implications for how investors manager their ESG portfolios but also for expectations on future commodity price levels. With carbon prices also rising, the transition to net zero could have some interesting inflationary implications. That is an inevitable result of internalising the costs of saving the planet! In the end, a price worth paying.