Obvious with Hindsight Investment Challenges for the Next Decade For Investment Professionals Only Peter Michaelis Head of Sustainable and Responsible Investment. Sustainable investing for the next decade. Five Sustainability Challenges How To Protect Your Investments
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Obvious with Hindsight
Investment Challenges for the Next Decade
For Investment Professionals Only
Head of Sustainable and Responsible Investment
Why most investors dislike long-term forecasting
Kodak Share Price
Source : Bloomberg 04/10/2013
Kodak invent the CCD image sensor.
It has a 90% share of the film market.
Kodak fails to gain share in digital cameras. Shares fallto zero.
Kodak dominates the market for camera film.
Digital camerasreplace film.
Collapses are obvious with hindsight;
companies frequently fail to adapt
Decarbonising our Economies
Source: Unburnable Carbon – Are the world’s financial markets carrying a carbon bubble, Carbon Tracker Initiative, 2013
Sustainable Future UK, EU ex UK and Global Growth Equity FundAverage Carbon Dioxide Emitted Relative to Conventional Benchmark
Carbondioxide intensity (Index equals 1)
The view from Investment Bank economists:
“The subject is too big to meaningfully contemplate”
“One of the most significant variables we are not capturing is the natural resources with which an economy is endowed and how this drives its relative terms of trade and its bargaining power in the global economy”
Source of quotes: Broken models? Economies and ecosystem services, Alliance Trust Investments, Newton Investment Management & Schroders, 2013
‘Just how business is done over there’ – Just accept it!
Relationship Between BMI and Risk of Type2 Diabetes
Source: Chang J et al. Diabetes Care 1994;17:961. Colditz G et al. Ann Intern Med 1995;122:481.
Chassis & Safety Division (26% EBIT)
Source: Automobiles & Parts, Kepler Research, October 2011
Continental Analysis – Chassis & Safety Division
Source: Internal analysis
Source: Bloomberg 04/04/2014
Our societies and economies are adapting to major challenges: