Thanks to a strange combination of events, a formerly fringe “asset class” has exploded into a $30 trillion global phenomenon.
According to Bloomberg, this asset class is on track to exceed $53 trillion by 2025, representing more than a third of all assets under management.
ESG assets are on track to reach $53 trillion, based on Bloomberg analysis, up from $37.8 trillion by year-end.
And thanks to the global pandemic, sustainable investing has – seemingly overnight – become the hottest trend in finance.
ESG – short for Environmental, Social & Governance – has officially arrived!
And for ESG investors looking for an economically viable way to fight climate change, this growing demand could bring one of the biggest economic booms of all time.
According to Larry Fink, the CEO and Chairman of Blackrock…
“It is my belief that the next 1,000 unicorns — companies that have a market valuation over a billion dollars — won’t be a search engine, won’t be a media company, they’ll be businesses developing green hydrogen, green agriculture, green steel and green cement”
Why? Because reaching “Net Zero” carbon emissions by 2050 means virtually every industry in the world will need to be reinvented.
A task which – according to the Global Infrastructure Outlook – will require $94 trillion of investment over the next 25 years to build!
Here in America, we’re looking at $12 trillion of infrastructure we’ll need funded… and even after President Biden’s commitment of “$1.7 trillion to achieve a 100 percent clean energy economy with net zero emissions by 2050…”
We’re still $3.8 trillion short!
And even though banks, insurers and investors with $130 trillion at their disposal pledged in Glasgow for COP26 earlier this month to put combating climate change at the center of their work…
According to US climate envoy John Kerry in a recent BBC interview…
“I am told by scientists, not by anybody in politics but by scientists, that 50% of the reductions we have to make to get to net zero by 2050 or 2045, as soon as we can, 50% of those reductions are going to come from technologies that we don’t yet have”
Where will this innovation come from?
According to the World Economic Forum, these innovations will likely come from ‘ecopreneurs’ — entrepreneurs whose business models are not just driven by profit, but by a desire to have a positive impact on the environment.
But in my opinion? We need more than brilliant “ecopreneurs” and breakthrough technologies…
We need to cultivate an entire ecosystem of long term thinkers that can support the innovation required to combat climate change.
I believe the community we’re building here at Equifund could potentially help in the fight in creating a sustainable future filled with green energy investment opportunities.
It’s one thing to have the world’s uber-rich in Davos saying they’re going to fight climate change…
And it’s an entirely different thing to have an engaged community of millions of everyday people who are willing to trade the allure of whatever flavor “get rich quick” is currently popular for long term sustainability and the survival of the human race!
Sincerely,
Jake Hoffberg – Publisher
Equifund
