Our sustainable investing outlook focuses on three themes: nuclear energy, extreme weather, and water dependency. What are the opportunities and challenges likely to affect firms’ competitiveness over the long term?
Key takeaways
- Nuclear power initiatives are expanding because of the growing need for clean energy. The focus is on restarting existing reactors and building small module reactors.
- More extreme weather is adding risk worldwide. Certain industries, such as insurance, are uniquely exposed. Even benign weather changes affect profitability for some firms.
- Increasing water dependency is influencing corporate strategy, capital expenditures, and economic growth. Demand is rising, but clean water sources are shrinking.