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Aluminium: Investing into the decarbonisation paradox

In this latest edition of our quarterly Spectrum report, experts from Federated Hermes consider the question of aluminium. The lightweight metal will play a crucial role in the energy transition but will need to address its own carbon footprint first.

Fast reading:

  • Aluminium production is a highly polluting process which contributes 2% of global carbon emissions.
  • The metal has tremendous potential to aid the transition towards clean energy but demand looks set to outstrip supply in coming decades.
  • Technological innovation and increased recycling has the potential to reduce the carbon footprint of aluminium producers but more needs to be done to encourage companies to adopt ‘cleaner’ practices.
Risk profile
  • The views and opinions contained herein are those of the author and may not necessarily represent views expressed or reflected in other communications. This does not constitute a solicitation or offer to any person to buy or sell any related securities or financial instruments

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