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A Perfect Storm

A technology revolution, accelerated by climate change, is driving a reconstruction of the global economy. A remarkable financial market revolution is promising to deliver the long-term capital companies need for investment and governments need to manage reconstruction’s social and economic costs.  Nations have a once in a century opportunity to leap-frog peers to emerge as leading technology-led, export-oriented net zero economies.

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Computer Robot

Technology

The 4th industrial revolution

Corporations the world over are investing heavily in AI, autonomy and automation, 3D printing, advanced robotics, new materials, revolutionising manufacturing, transportation and delivery systems, uprooting long-established global supply chains. Technology is eroding the comparative advantages enjoyed by nations with high levels of wage adjusted labour productivity, creating new opportunities for nations the world over to attract investment and leap-frog peers to advance.

A climate emergency

Swathes of legacy infrastructure, energy and industrial capacity are set to be mothballed, dismantled, written-off, relegated to the dustbin of sunk costs as the global economy adapts to and mitigates the effects of climate change through a gargantuan, time-constrained reconstruction exercise costing tens of trillions of dollars.  Investors and lenders have boundless opportunities to create shareholder wealth as a brand new, net zero global industrial economy takes form.

Stormy Beach

Environment

Stocks

Finance

The rise of ESG

A new values-driven investment asset class, focusing not only on financial returns but also environmental and social impact, human rights, freedom and transparency is expected to comprise, according to Bloomberg, one-third of global assets under management by 2025.  ESG’s growth was recently evidenced by the funding commitment to climate initiatives made at COP26 by the GFANZ group of leading financial institutions that collectively manage $130 trillion of assets. 

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