Against our nature

Benign macroeconomic conditions have boosted infrastructure investments over the past decade. But with higher interest rates, investors in the asset class will have to show they can create true value, says Darryl Murphy.

Batteries are set to play a crucial role in helping to decarbonise the global transport and energy sectors. As capital floods into an industry experiencing exponential growth, we look at the key considerations for investors.

In this month’s instalment of our visual series on topical themes, we look at climate in the aftermath of November’s COP27 event in Egypt.

James Tarry and Luke Layfield explore how the accelerating climate transition is creating risks and opportunities for real assets investors.

Will a warmer and less biodiverse world give pathogens new opportunities, and do we have the tools to confront disease? This report discusses the complex intersection of three planetary crises and calls for urgent action to slow resistance to antimicrobial drugs – an obvious public health emergency.

Investors in real assets can propel the transition to a more sustainable future while also benefiting from portfolio diversification and attractive returns, says Mark Meiklejon.

To help tackle the climate emergency, financial institutions and governments must work together to reform the global financial architecture and create a more robust net-zero transition plan, argue Steve Waygood and Thomas Tayler.

Social housing plays a pivotal role in providing affordable housing for those most in need of it, benefiting local communities and countries as a whole. But investors considering an allocation to the asset class must pay close attention to the ESG implications, argues Mikhaila Crosby.

Will new climate legislation accelerate the transition, or will the energy crisis hamper it? Thomas Chinery and Justine Vroman assess the implications for strategically positioned bondholders.

To restore trust in ESG, we need to be much clearer on its limitations as well as its strengths, argues Mirza Baig.

Renos Booth, Isabel Gossling and Kris McPhail from our real estate long income team discuss the strengths of long-income strategies in a period of high inflation and rising rates.

Asset owners are increasingly committing to net-zero emissions in their portfolios by or before 2050, but it is a huge and complex undertaking. What do asset owners need to consider as they start on their decarbonisation journey?

The UN Climate Change High-Level Champion for the COP26 summit in the UK sets out how the private and public sectors can work together to tackle the climate crisis and other systemic threats. Words by Miles Costello.

The influential academic speaks to AIQ about the flaws in traditional economic thinking and how her revolutionary “Doughnut” offers a fresh approach to solving the world’s greatest problems.

A series of market failures have brutally exposed the shortcomings of Modern Portfolio Theory. However, market participants play an active role in markets; they are not mere bystanders. Understanding this could provide a better way to think about and deal with systematic risk.

Financial services underpin all economic activity, which itself depends on Earth’s natural capital. Resolving their interconnected issues to bring about a just transition will require a holistic, systems-thinking approach.