Outlook 2024 | Why prospects for a more sustainable economy remain undimmed
By Hubert Aarts, Lisa Beauvilain, Charlie Donovan, Charles French, Julie Gorte, Ph.D., Luciano Lilloy, CFA®, Kirsteen Morrison, Shahbano Soomro.
Macroeconomic and geopolitical storm clouds linger as we enter 2024, but fundamental forces and economic logic dictate that the transition to a more sustainable economy cannot be derailed. In this paper, we share our perspectives on key themes that we believe will shape opportunities in global markets in 2024 and beyond.
Progress towards a more sustainable global economy might seem to have been delayed in 2023. Tighter macroeconomic conditions have not helped sentiment towards assets associated with the ‘green’ economy. Geopolitics and national policy changes also threaten to undermine progress. These short-term challenges notwithstanding, the fundamental long-term drivers of transition to a more sustainable economy remain firmly intact.
Key environmental issues remain in focus, including biodiversity loss ahead of the COP16 global biodiversity summit later in 2024. Meanwhile we continue to perceive a growing need for innovative cost-effective solutions to support a healthier, more productive and more inclusive global society. We will continue to investigate how applications of AI could potentially address some of these environmental and social challenges.
In addition to these long-term issues, as we look ahead to 2024, we are encouraged by indicators that the monetary cycle may be turning. We believe that this will both support companies in some of the sectors we focus on, and also create selective investment opportunities for those focused on the transition.
In this paper, we share our perspectives on key themes that we believe will shape opportunities in global markets in 2024 and beyond.
The specific securities identified and described are for informational purposes only and do not represent recommendations.
Nothing presented herein is intended to constitute investment advice and no investment decision should be made solely based on this information. Nothing presented should be construed as a recommendation to purchase or sell a particular type of security or follow any investment technique or strategy. Information presented herein reflects Impax Asset Management’s views at a particular time. Such views are subject to change at any point and Impax Asset Management shall not be obligated to provide any notice. Any forward-looking statements or forecasts are based on assumptions and actual results are expected to vary. While Impax Asset Management has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability or completeness of third-party information presented herein. No guarantee of investment performance is being provided and no inference to the contrary should be made.