What is the scale of investment transition? 2012

Some sustainable investments provide almost immediate benefits and returns. Others take time to deliver or provide investment yields upon maturity. Either way, investment choices made now, whether for a pension fund or more immediate returns, will determine well-being in 20, 30 or 40 years time.

The investment transition is colossal. In 2010 Carnegie projected inflation corrected global GDP to grow from $38.3 trillion in 2009 to $160 trillion in 2050. Investment rates of advanced nations have typically ranged between 15–30% of GDP, and very little of that demonstrably shifts trends towards sustainable ends. Although the numbers are indicative, it is evident that tens of $ trillions of investments will need to be evaluated and likely shifted over the next decade, and effectively all in just 30 years time.

Created 2012 MMG/SNJ