Most institutional LP mandates were constructed during an era of globalisation, low inflation and political stability. Exclusion lists, net zero commitments and impact frameworks were all calibrated as such. In a fractured world, they look out of date. Deglobalisation, resource competition and conflict are all challenging these long-held assumptions. On the one hand, regulators are holding firm on ESG commitments; whilst the macro environment demands investment into areas like defence and critical minerals, exactly the areas that historically have been excluded on ESG grounds. How do LPs navigate this shift? Do they have the mandate flexibility, governance or analytical frameworks to reallocate towards these themes?
