Breaking down the sustainability megatrend
Over the last decade environmental issues have steadily impacted society and businesses attesting to the reality of a connection between these issues and portfolio performance. Increasingly globalized workforces and supply chains are putting enormous pressure on businesses at the local level, and the rise of new world powers is intensifying the competition for natural resources. These factors are magnified by rising public and governmental concern about climate change, pollution, equality and social justice, biodiversity and healthcare. Consumers across markets are seeking out sustainable products and services and are showing support for companies that are improving ESG performances. These forces can be interpreted both as risks or opportunities.
Sustainability concerns
Global warming Water and food scarcity Deforesta�on Social inequality Declining biodiversity Overpopula�on Lack of healthcare Access to educa�on Poor business ethics 63% 39% 39% 31% 28% 26% 23% 18% 15% Q2. What are the top 3 sustainability-related risks that concern you most? Select up to 3 answers.
To the question “what are the 3 top sustainability-related risks that concern you the most” more than six in 10 European investors (63%) point to global warming as the most concerning sustainability-related risk. They also raise concern regarding water and food scarcity (39%) and deforestation (39%). Millennials and Generation X investors exhibit the highest levels of anxiety related to global warming as more in both groups say this is a concern. Arguably, this may be because climate awareness began rising when members of Generation X were young and Millennials were, in turn, raised in an environment of heightened recognition of this issue.
The central role of climate change megatrend
55% 45%
Climate change
Technological Innova�on
This focus on climate change also leads to opportunity. In fact, investors say climate change represents the most attractive investment opportunity in the next five years. The areas pegged for investment are climate change (55%) , technological innovation (45%) and green infrastructure (41%). These megatrends offer the most attractive investment opportunities, according to investors.
41%
Green Infrastructure
38%
Biodiversity
30%
Human and social rights
17%
Diversity and inclusion
18%
Q18. In which megatrend would you consider investing (more) in the next 5 years? Select up to 3 answers.
15%
15
2021 Nordea ESG Survey
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