Outlook 2024: Why Prospects for a More Sustainable Economy Remain Undimmed

Market Outlook

We share our perspectives on key themes that we believe will shape opportunities in global markets in 2024 and beyond.

Executive Summary

  • The transition to a more sustainable economy won’t be derailed
  • Political tensions create selective opportunities
  • Mitigating drivers of biodiversity loss will create new markets
  • Society’s challenges can be efficiently addressed through innovation
  • Artificial intelligence (AI) can accelerate the transition to a sustainable economy

Progress towards a more sustainable global economy might seem to have been delayed in 2023. Tighter macroeconomic conditions have not helped sentiment towards assets associated with the ‘green’ economy. Geopolitics and national policy changes also threaten to undermine progress. These short-term challenges notwithstanding, the fundamental long-term drivers of transition to a more sustainable economy remain firmly intact.

 

Key environmental issues remain in focus, including biodiversity loss ahead of the COP16 global biodiversity summit later in 2024. Meanwhile we continue to perceive a growing need for innovative cost-effective solutions to support a healthier, more productive and more inclusive global society. We will continue to investigate how applications of AI could potentially address some of these environmental and social challenges.

 

In addition to these long-term issues, as we look ahead to 2024, we are encouraged by indicators that the monetary cycle may be turning. We believe that this will both support companies in some of the sectors we focus on, and also create selective investment opportunities for those focused on the transition.

 

In this paper, we share our perspectives on key themes that we believe will shape opportunities in global markets in 2024 and beyond.

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