Unsustainable human civilisation on earth is now a reality. Awareness of this is steadily rising among governments, companies and consumers alike, creating opportunities for investors across the clean economy.
What is CleanTech?
Clean technology, commonly referred to as CleanTech, was first introduced in the late 1990’s1 and refers to companies who seek to have a positive environmental impact, by developing new technology across areas such as energy efficiency, smart grids, clean energy and sustainable resources.
Each day, more than 200,000 additional people populate the planet2, further challenging how far natural resources must stretch to sustain human life, and CleanTech is creating genuine solutions to help address these challenges. This need for change is driving the global CleanTech market and this market is anticipated to reach US$3 trillion by 20253, up from US$601bn in 2014.
What does CleanTech mean for investors?
Consumers are demanding more of companies and governments, and they are increasingly lobbying them to make changes to their environmental policies, as the fear of unsustainable human civilisation on earth deepens. Consequently, we are beginning to see a shift to CleanTech investing, as more companies embrace the circular economy and respond to the need for change. Businesses that are prepared to adapt should have a sustainable, competitive advantage by reducing their input costs over the long-term, and, they could see significant growth potential in the decades to come. We believe that this could provide investors with exciting, new investment opportunities in companies that should stand the test of time.
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Forecast to grow 10-15% annually until 2025*, the robotics industry is rapidly changing how we live and work
Only 13% of global retail sales are transacted online, which will likely increase as smartphone adoption rises globally*
Ageing and Lifestyle
The number of over-60s is expected to triple in size between 2000 and 2050, creating challenges for companies and individuals*
The growth of the global middle class is at a 150-year high, boosting consumption in Asia and the developing world*
The Evolving Economy at AXA Investment Managers
Established thematic investor
30-year track record of thematic investing and product innovation
Innovative research structure
Collaborative research structure to prioritise Evolving Economy exposure over traditional geographic and sector information
Deep insight to performance drivers
Our proprietary thematic exposure database quantifies Evolving Economy exposure across a universe of c.11,000 companies*
Active, long-term approach
We distinguish between short-term investment hype and investment reality by focusing on long-term commercial viability.
1/ Source: https://www.investopedia.com/terms/c/cleantech.asp - 19 April 2020
2/ Source: Worldometer aggregate from United Nations Population Division, World Health Organization (WHO), Food and Agriculture Organization (FAO), International Monetary Fund (IMF), and World Bank, correct as at September 2020.
3/ http://www.climateaction.org/news/clean_tech_market_to_exceed_3_trillion_by_2025/ - 13 September 2012
4/ Worldometer, as at 1 July 2020
5/ The global price tag for 100 percent renewable energy: $73 trillion, Yale Environment 360, Yale School of the Environment, 20 December 2019
*Ageing & Lifestyle - US Department of Commerce, latest data available as of March 2018
*Connected Consumer - Citi Research, Citi GPS “Technology at work v3.0”, August 2017
*Automation - IFR World Robotics Report 2017, latest available data as of March 2018.
*Transitioning Societies - UN, correct as at March 2018
*Performance Drivers - AXA IM, correct as at 29 December 2017
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