Generation’s Sustainability Trends Report reveals we have entered an era of sustainability-driven disruption
We launched Generation Investment Management with a mission to prove the business case for sustainable investing by delivering strong performance over the long-term. It’s clear that today, the pursuit of sustainability is transforming the economy everywhere we look, with sustainable investment soaring to a record 17.5 trillion dollars.
That’s why we’re excited to share the Sustainability Trends Report 2019, our third annual assessment on how sustainability is profoundly disrupting key sectors of the global economy. Drawing on more than 250 sources, we believe there is no more comprehensive survey of the sustainability landscape from a business perspective.
The global context for this year’s report is sobering. Disruption to our society and economy is manifesting in a rapid increase in natural disasters, more extreme weather, unprecedented extinction rates, an increased number of climate refugees and disease migrations. Around the world, people are convinced that the economy isn’t working for them. Simply put, we are in an age of environmental crises and of widening social divides.
Incremental improvements to address these challenges are no longer enough. There is an urgent need to fundamentally upgrade our economic system by embracing sustainability-driven disruption.
The Greatest Investment Opportunity in History
The sustainability revolution is underway, and we believe it represents the greatest investment opportunity in history. In sector after sector, exciting innovations are emerging that will accelerate the transition to a sustainable economy.
Businesses are responding to shifting consumer expectations, rapid technological change and evolving policy frameworks. This sustainability-driven disruption provides huge opportunities for both business leaders and investors if we can understand the systemic shifts underway across all sectors.
For instance, take our energy system. According to Bloomberg New Energy Finance, the cost of producing energy with renewables has plunged in recent years, with the cost of offshore wind energy falling by more than half since 2012. Yet investment in renewables fell from 2016 to 2018, according to the International Energy Agency. Coal consumption is also rising.
Or our global food system. There is a growing interest in healthy and sustainable diets, but meat consumption is still rising with per capita meat consumption in China more than doubling in the last 30 years, according to the Food and Agriculture Organisation and the OECD. Meanwhile, millions of people still do not get the nutrition they need.
In the realm of human health, there are many new ways for people to manage their own well-being, yet OECD figures suggest that only 3% of budgets are spent on prevention rather than cure.
Our report shows that there are many innovations in these areas that are ready to scale. As investors, and as humans, now is the time to act. Understanding how these trends will help transition us to a sustainable economy is key to finding the companies that will thrive in the coming decades.
Follow us on Medium, where over the summer, we’ll share deeper dives into how sectors such as finance, health, consumption, energy, industry and mobility are transitioning and, just as importantly, where we need to see acceleration.
About Generation’s Sustainability Trends Report
Generation’s Sustainability Trends Report (STR) is an annual publication that provides insights into the transition to a sustainable economy. STR is primarily based on Generation’s investment frameworks and focuses on how sustainability is manifesting across various sectors of the economy, notably Finance & Economics, Health, Consumption, Energy, Industry and Mobility. The inaugural report was published in 2017. https://www.generationim.com/sustainability-trends/
The report should not be construed as investment research, advice or the making of any recommendation. While the data is from sources Generation believes to be reliable, Generation makes no representation as to the completeness or accuracy of the data.
About Generation
Generation Investment Management LLP is dedicated to long-term investing, integrated sustainability research, and client alignment. It is an independent, private, owner-managed partnership established in 2004 and headquartered in London, with a US office in San Francisco. Generation Investment Management LLP is authorised and regulated in the United Kingdom by the Financial Conduct Authority. www.generationim.com
