investment viewpoints

Transition investing for today’s economic revolution

Transition investing for today’s economic revolution
Thomas Höhne-Sparborth, PhD - Head of Sustainability Research

Thomas Höhne-Sparborth, PhD

Head of Sustainability Research

Throughout history, the relationship between our economy and the environment has been defined by changes in three key systems: energy, land and oceans, and materials.

From the invention of agriculture to the Industrial Revolution, these systems have been transformed countless times – enabling massive increases in growth and prosperity but also exacting an evidenced environmental toll. 

In response, these three systems are once again being revolutionised. Driven by policy, market and technological forces, sustainable solutions are breaking into mass markets. Reflecting past economic transitions, these shifts began slowly but are now accelerating at scale.
Our conviction in this phenomenon – and its materiality to the investment opportunity set – is explained in the video below.

key conviction.

Systems changes are rewiring the economy. In the USD 10 trillion energy system, clean electricity is powering the rise of new interconnected technologies. Food systems, which also represent USD 10 trn, are refocusing on nature. And in the USD 5 trn materials system, bio-based, recyclable inputs are combining with leaner industrial processes to foster circularity. 

This transition is a significant source of investment opportunity, in our view. It is at the heart of the convictions driving strategies managed through holistiQ, our sustainable-investment platform1

Focusing on the transition compels us to look beyond traditional ESG metrics and analyse the long-term opportunities being generated by the profound economic transformation that is happening all around us, all at once.

Learn more about our Planetary Transition strategy.

 1holistiQ is a partnership between LOIM and SystemIQ, managed on LOIM’s operational platform. It is not a separate, regulated entity. 

important information.


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