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Home > For Investment Professionals Only > Fundamentals: Palm oil, Chinese steel and when the environment triumphs
Podcast: For Investment Professionals Only
Episode:

Fundamentals: Palm oil, Chinese steel and when the environment triumphs
Category: Government & Organizations
Duration: 00:21:08
Publish Date: 2019-04-12 05:08:42
Description:

Fundamentals is a new show from Fidelity Answers that taps the brains of our analysts for on-the-ground insights from around the world about the industries and businesses you're investing in. From trends to disruptions, from political upheavals to changing regulation, how are corporates responding to the growing complexity of global business and less predictable markets? Who will be the winners and who the losers?

-> Orangutans spend most of their lives in the treetops of the jungles of Sumatra and Borneo. But today they're critically endangered, largely because millions of hectares of their habitats are being cleared to make way for palm oil plantations. The palm oil producers are under increasing pressure from consumers, NGOs and investors to lessen their environmental impact. And it's working.

From the jungles of Southeast Asia, we move to the steel mills of northern China, where the government is closing the least profitable and most polluting plants in part to reduce the thick toxic smog that can hang over the homes of hundreds of millions of people.

So what do these two stories of environment-related pressure mean for the industries in question? Will short-term pain bought on by external pressures lead to long-term gain for the companies - and investors - involved? And what might that mean for other sectors facing similar challenges?

In this podcast, Asia Editor Neil Gough talks to Fidelity's Forest Shultz, an equity Investment Analyst who focuses on metals and mining across Asia, and Minlin Lee, a Research Associate who covers equities including Malaysian and Indonesian palm oil producers.
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