Your guide to sustainable transition

A vital reason for a sustainable transition is the pressing issue of resource scarcity. Our current economic model is heavily dependent on the rapid consumption of finite natural resources, which is not only unsustainable but also poses a significant threat to future economic growth. As critical resources – such as water, minerals, and fertile land – become increasingly scarce, their rising costs and limited availability will act as a brake on economic expansion.

And we are not moving fast enough to mitigate the impending climate changes that scientists are warning us about. If we look at the International Energy Agency’s (IEA) policy pathway, building low-emission structures only represents 15-20% of the reduction needed. The majority of the effort is required in the section: ‘making dirty cleaner.’ This involves transition investments that support companies in transforming their operations and business models to drive meaningful change.

Investors can support the shift to a sustainable economy while generating attractive returns by tapping into a broad set of opportunities. This includes equity, corporate bonds, and green, social, and sustainability bonds (GSS bonds) that fund projects aligned with climate, biodiversity, and social goals. By investing in companies successfully navigating regulatory shifts and adopting sustainable practices, capital will flow to those well-positioned for long-term growth. Identifying the winners in this evolving landscape, across both equity and fixed-income markets, is essential to capturing alpha while driving environmental and social progress.