The world we're headed for
Earth’s temperature is rising...
...at an unprecedented rate
The Earth's temperature is rising at an unprecedented rate due to human actions, with irreversible changes to our environment unfolding as a result. An estimated 2.4°C of warming is anticipated* by the turn of the century, even with full NDC commitments from the relevant nations around the world. If we continue along this perilous trajectory - grave damage to our planet and societies will follow.
Mass extinction of flora and fauna
Famine due to crop and food supply degradation
Economic uncertainty for future generations
There is a better alternative possible
if we are willing and able to act today
An energy transition towards renewables
Cleaner water and atmosphere
More sustainable businesses
A better future for ourselves and the generations to come
The choice is ours...
As global populations continue to grow, an ever increasing demand for energy, food and other necessities is fueled. Earth’s finite resources and delicate interconnected ecosystems cannot withstand this strain indefinitely.
Megatrend: Environmental Challenges
The need for solutions that seek to improve energy efficiency, lower food waste and provide alternatives to scarce resources has never been greater.
The Cost
The Opportunity
$160 - 340 Billion*
$26 Trillion**
Minimum annual adaptation costs faced by just developing countries by 2030
Potential economic gain through to 2030 if bold climate action is taken
Many global agreements guide these endeavors, such as the UN Framework Convention on Climate Change, COP 26 and the Paris Agreement.
Overcoming these challenges is a priority issue
As a priority issue for the coming decades, the UN has made Climate Action one of its Sustainable Development Goals for 2030; UN SDG #13
Three broad categories of action are:
Cutting emissions
Financing adjustments
Climate adaptation
Source: **Economist Impact, 30 November 2023
Investors are taking action across key sub-themes...
Renewable Energy
13%
The supply of renewables needs to accelerate to reach around 13% expansion annually over 2023-2030 to align with the NZE Scenario*
*Source: IFA Renewables, 11 July 2023
Climate Protection and Resource Conservation
>50%
More than 50% of the worlds GDP - or $44trn – are dependent on nature and it’s services*
*Source: The Wold Bank, 7 December 2022
Sustainable Agriculture
13.32 billion
The Global Sustainable Agriculture Market size is valued at 13.32 billion in 2022 and is predicted to reach 31.35 billion by the year 2031*
*Source: Global Sustainable Agriculture market report, 2023
Water Supply & Technology
+55%
The anticipated increase in water demand between the period from 2015 to 2050*
*Source: OECD Environmental Outlook to 2050
...and many more investable topics!
Sustainable Infrastructure & Resilience
Energy Efficiency and Sustainable Building
Pollution Prevention
Smart City
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By analysing the structural opportunities presented by Environmental Challenges, thematic investors can identify companies that could most likely benefit and contribute within various relevant and investable sub-themes. This can provide a potential path for thematic investors seeking to generate returns while acting as conscientious stakeholders in a significantly more environmentally sustainable future.
Seeking to contribute to a healthier planet
Learn more about Megatrends
Aiming for potential portfolio diversification*
Looking to capture long-term growth potential
Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of April 2024. *Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
Date of first use: April 2024
Doc ID: 2102399
Environmental Challenges
Invest for your future - act for the planet
Marketing Communication
Source: *UN Environment Programme Adaptation Gap Report 2022
Source: *UN Environment Programme Adaptation Gap Report 2021