How will climate change affect investment decisions?
Climate change is important to investors because we are in a period of very significant change.
The goals set out in the Paris agreement to tackle climate change require a complete decarbonisation of the global economy.
That means all kinds of industries will need new production technologies and new ways of manufacturing.
And that will require a whole new set of products, services and technologies than we have used in the past.
So we think it will be very important for investors to align with those new products and services and to avoid the industries and the companies that are not well positioned for that change.
Why is this important now?
Well, some of the most important climate change technologies, like renewable energy or electric vehicles, have come of age.
The cost of those technologies have come down to the point that, rather than requiring a lot of subsidy or taxpayer funding, they are competitive.
They are the cheapest forms of power generation. In the case of electric vehicles, the cheapest form of mobility of driving a vehicle.
That means we can begin to meet our objectives under the climate change with competitive technologies. And that means the inflection points, the growth of those technologies, can be incredibly strong.
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