The Greener Way

HALO trade: Why hard assets are the new gold for sustainable investors
Question:
What is the HALO trade, and why are asset-heavy companies suddenly attracting investor attention in the age of AI and decarbonisation?
Short answer:
The HALO trade (Hard Assets, Low Obsolescence) is reshaping investment strategies. According to Dierdre Cooper, companies tied to physical infrastructure (like grids, pipelines, and industrial equipment) are seeing renewed growth as AI drives demand for electricity and hard assets. Unlike asset-light sectors threatened by automation, these companies are essential for electrification and climate solutions. Investors who focus on this theme may benefit from attractive valuations and strong growth, especially as decarbonisation and electrification accelerate globally.
Why it matters:
For sustainable investors, the HALO trade highlights a shift from tech and asset-light stocks to companies with tangible, enduring value. Understanding this trend means recognising the importance of infrastructure, energy storage, and electrification in a world increasingly powered by AI and climate technology. Missing this shift could mean missing out on the next wave of growth and resilience in global portfolios.
Sources:
• Michelle Baltazar, executive director of media, FS Sustainability
• Dierdre Cooper, head of sustainable equity, Ninety One
• Ninety One Global Environment strategy
• Companies: Contemporary Amperex Technology Co., Limited (CATL), Hongfa Technology, Shaman Electric Co., Limited, Infineon Technologies, TE Connectivity
• Industry context: MSCI All Country World Index, decarbonisation trends

Timestamps:
00:00 Asset-heavy companies and electrification
00:29 HALO trade explained
01:24 Ninety One’s sustainable investing approach
03:15 Global environment strategy vs traditional equity
06:11 AI, asset-light vs asset-heavy sectors
08:32 Data centres and electricity demand
11:30 PE multiples and growth outlook
13:13 Market cycles and investor sentiment
14:28 Electricity as “all of the above” solution
17:25 Exciting trends for the next decade
19:52 Autonomous robots and electrification
20:42 Risks and selectivity in thematic investing
21:33 Wrap-up and final thoughts

We record on Gadigal Land and we pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy

AI, Workplace Culture and Labor Rights: Why human capital risk is financially material
This week on The Greener Way, host Michelle Baltazar speaks with Emily DeMasi, regional team lead - North America EOS at Federated Hermes, about why human capital risks, such as workplace culture, harassment and violence, labour rights, and supply chain conditions, are financially material for investors through impacts on productivity, reputation, and long-term returns.
DeMasi explains how stewardship engagement assesses human capital using employee surveys, whistleblower mechanisms, and core disclosure metrics such as workforce size (including gig and contract workers), turnover, demographics, and total workforce cost.
They discuss AI’s double-edged impact, from efficiencies and training needs to job displacement anxiety and potential worker surveillance.

00:39 Why human capital matters
02:45 Workplace harassment as material risk
04:29 Do employee surveys work?
05:50 Investor engagement metrics
07:55 AI workforce disruption
11:13 Case studies
13:43 Best practice supply chain frameworks
16:18 Why stewardship is crucial
17:42 Looking ahead on AI and governance

We record on Gadigal land and we pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy

Why Australia Is a Clean Energy Investment Hotspot: Solar, Wind, Batteries & Energy Security | Joost Bergsma
On The Greener Way, host Michelle Baltazar speaks with Joost Bergsma, global head of energy at Nuveen Infrastructure, about clean energy investing, energy security, and why Australia is attractive for large-scale renewables.
Bergsma reflects on his the last two decades in the sector and describes how capital raising has evolved from needing to explain basic technologies to today’s dedicated institutional infrastructure teams, alongside greater competition.
He explains clean energy investments across solar, onshore/offshore wind and battery storage that appeal to Nuveen’s institutional clients.
He also highlights what’s new in the battery storage sector and Australia’s land-driven scale advantages versus Europe.
For investors just entering the clean energy sector, he explains the need to address China-concentrated supply chains and Australia’s grid buildout needs.
01:02 A career milestone in clean energy
02:13 Capital raising outlook
03:09 Nuveen infrastructure strategy
04:43 Geopolitics and energy security
06:47 Data centres and demand surge
08:41 Risk return spectrum explained
09:45 Australian investor appetite
10:54 Nuveen’s local pipeline
12:04 Ten-year outlook on batteries
14:40 What could go wrong?
We record on Gadigal land and we pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy

Who Really pays tariffs? Stanford economist breaks down the hidden consumer cost
In this episode of The Greener Way, host Michelle Baltazar speaks with Stanford University economist Luke Heeney about the often-overlooked social impacts of industrial policy, focusing on the 2025 US tariffs and their effects on the automotive sector.
Heeney explains why accounting for tariffs on intermediate inputs is crucial, finding that many US producers lose billions when parts are included, with only one company coming out ahead due to greater domestic sourcing.
He also finds the largest percentage of financial losses fall on the lowest-income households, costing billions of dollars.
00:00 Who pays tariffs?
00:58 Industrial policy focus
03:11 Tariffs study setup
04:30 Key findings explained
06:27 Lessons for Australia
07:37 Why impacts are overlooked
09:37 Staggering consumer costs
12:04 Building better toolkits
14:27 What the government can do
We record on Gadigal land and we pay our respects to the traditional custodians of country and elders past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy

Critical Minerals Supercycle? How AI, Clean Energy & Geopolitics Are Reshaping Supply Chains
In this episode of The Greener Way, host Michelle Baltazar chats with Vinnay Cchoda, responsible investment manager at BetaShares, about the predicted shortage of some critical minerals in the next couple of decades and how that could force a resetting of investment expectations and strategies.
Cchoda says the convergence of electrification, AI-driven data center buildout, and unstable geopolitics is causing supply chain issues.
He argues that the supercycle of critical minerals is directionally right but too simplistic, with uneven outcomes across the different types of minerals. For example, lithium and nickel are seeing faster supply responses and price corrections, while copper has hit new highs.
The discussion highlights why investors need to look at their diversification strategies and how to respond to the cycles within the supercycle impacting investment outcomes.
Read: Critical minerals in the age of AI and tariffs (Link: https://www.fssustainability.com.au/article/critical-minerals-in-the-age-of-ai-and-tariffs)
01:08 Three forces converge
04:17 Supercycle creates uneven outcomes
07:27 When AI meets clean energy
09:06 Predicted 40% supply shortage
10:52 Supply chain bottlenecks
13:05 Investor playbook
We record on Gadigal land and we pay our respects to the traditional custodians of country and elders, past and present.
https://www.fssustainability.com.au/

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy