LPL Research
Climate Impact & Sustainability Data (February 2020, June 2022)
Reporting Period: February 2020
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Coronavirus outbreak fears
- Geopolitical uncertainty
- U.S.-Iran conflict escalation
Mitigation Strategies
- Maintaining a balanced view of growth and value stocks
- Favoring U.S. large caps and emerging markets
- Suggesting a blend of high-quality intermediate bonds, focused on mortgage-backed securities
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: June 2022
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- High inflation
- Risk of Federal Reserve over-tightening monetary policy
- Lack of cease-fire in Ukraine
- Ongoing COVID-19 lockdowns in China
- Weakness in retail earnings
- Russia-Ukraine conflict's impact on Europe
- Supply chain disruptions
Mitigation Strategies
- Slight tilt toward value style in short term
- Expect improved macroeconomic environment to favor growth style later in year
- Favor stocks over bonds
- Slight underweight allocation to fixed income
- Favor shorter maturity corporate credit and high yield bonds
- Upgrade of energy sector to positive from neutral
- Defensive sector tilt (consumer staples, healthcare, utilities)