What is the scale of investment transition? 2012

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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