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Demand for a clean, green tomorrow will advance energy and conservation.
The persistent increase in global emissions has led to intensifying debates around climate change and how we can resolve it. There are several forces underpinning this megatrend—such as an expanding population and the rising demand for food, and the energy and materials that continue to strain the finite resources of the planet—making the need for solutions that address resource scarcity greater than ever.
Climate change: The earth in the hot seat
The impact of climate change is evident when looking at the numbers:
- 50% of the world’s energy is predicted to come from solar and wind by 2050, up from just 7% in 20151
- Renewables are set to represent ¾ of the $12 trillion the world invests in new power technology through 20401
- The US National Climate Assessment report noted that sea levels are now rising twice as fast as 25 years ago2
How can we invest in solutions?
The social and economic consequences of climate change are substantial. As a result, new solutions to address finite resources continue to emerge, presenting opportunities to invest in companies that are focused on making a positive impact - through energy efficiency, sustainable food systems and scarce material alternatives.
Clean energy is cheaper than it has ever been
In some countries, clean energy sources are comparable to natural gas and coal power in terms of unit costs and rely less on government subsidies each year.
88% The average price of solar module has fallen 88% since 20103
40% The cost of wind turbines has declined by over 40% since 20103
Resource scarcity: Getting more out of less
As large emerging markets continue to grow, the need for nutrition rises with per capita GDP. This greater demand will require agricultural solutions, as it will have to be satisfied with fewer resources.
Globally, the area of land dedicated to agriculture has persistently declined over the last 20 years and with it so has agriculture’s share of total employment – going from 42% to 25% in the last 30 years.4
1Bloomberg, New Energy Outlook, 2018
2Fourth National Climate Assessment, 2018
3Bloomberg, New Energy Outlook, 2018
4World Bank, March 2019
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Investing involves risk, including possible loss of principal.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.
Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Technology companies may be subject to severe competition and product obsolescence.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
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