COP26 takes place this week in Glasgow and we asked industry experts what they were expecting from the event. Will McIntosh-Whyte, fund manager, multi-asset portfolios, Rathbone Greenbank, says government support may be needed to help communities who could lose out from the transition.
In the drive to greener economies, some businesses such as oil companies or auto-makers may struggle to adapt, and this will put pressure on any community reliant on them for livelihoods. However, there will also be opportunities as new, cleaner, and more sustainable industries take root, and it is important that those disenfranchised by this change are re-skilled. An element of government support may be needed to ensure communities do not suffer as a result of the transition, thereby exacerbating fear of change.
From an investment perspective, our research visits to America have shown US companies have a genuine understanding of the need to adapt to these changes, and there are many sustainable leaders across the pond from Advanced Drainage Systems, which makes pipes from recycled materials, to Adobe, which has a strong reputation for looking after its staff. There are some great opportunities from the transition to a more sustainable economy for all investors, regardless of mandate, from businesses like Aptiv, who are helping auto-makers pivot to electric vehicles, to DSM, whose feed supplements reduce methane emissions from cattle.
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