Welcome to Thoughts on the Market. I'm Andrew Sheets, Chief Cross Asset

Strategist for Morgan Stanley. And I'm Jessica Alsford, head of the Global

Sustainability Research Team. And on this special edition of the

podcast we're talking about the outlook for

sustainability and ESG investing in 2021 and some key themes for investors to watch.

It's Tuesday, December 22nd and 11 a.m. in New York.

And 4 p.m. in London.

So, Jess, let's take a look at 2021.

What do you think is in store for ESG themes?

So we would expect decarbonisation to still be one of the most investable themes the year ahead.

However, a lot of the more obvious pure playways to get exposure to that theme have had a very strong 2020 and so instead we're really

arguing that you need to be a bit more selective and look for some of those

under-appreciated stories. We're also focused on sustainable consumption both on the perspective of future of food and

sustainable packaging as well.

And if you look at our recent outlook piece, we highlight 15 stocks, so five from each of the regions of America, Europe and Asia,

and two-thirds of those stocks are cyclicals. So really taken into account the

fact that our strategists are overweight going into the new year.

And it's safe to say that this isn't just a nice idea there's there's a lot of real money flowing

into these strategies isn't there completely and I've been in this space for over

eight years now and it's changed a huge amount over that time period.

But what we've really seen over the last 18 months or so

is this broadening of of sustainable investing of ESG, appealing to a much wider selection of investors and

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