The major opportunities ahead will come from this transition, as “brown” companies invest and pivot to become “green”. This will bring “transition alpha” as investors will increasingly choose the companies that are adapting, showing resilience and are making plans well into the future.
A critical decade of change lies ahead. This applies particularly to Asia, where tremendous growth will need to go hand in hand with an unprecedented energy transition and a switch to sustainable development.
There is now an inflexion point around technology, policy and capital — all rising to the challenge of this crucial decade. New technology is allowing us to solve problems at scale and profitably. There will be more policies guiding energy transition and renewables. We are also on the cusp of a capital inflexion point, with an increasing amount of money going into environmental, social, governance (ESG) and impact strategies.
