As the world’s investors continue to negotiate with and navigate an increasingly complex international investment landscape and deploy capital to create a sustainable future, Mubadala Investment Company (Mubadala) is launching its Megatrends Study with Bloomberg Media, showing how climate change is a growing threat to India and the world and digital technologies serve as the greatest opportunity for a better future.
Based on a survey of over 1,800 global investors, engaged and informed Millennials, and Gen Z consumers from India, the UAE, UK, US, China and France, the study finds climate change outstrips other megatrends on being the greatest risk to the wellbeing of the world, impacting health, the environment, and business. France (52 percent), the UK (50 percent), the UAE (41 percent), and India (39 percent) agree most strongly that climate change is the biggest threat, while the US (29 percent) and China (27 percent) see climate change almost on par with the impact of demographic shifts and inequalities.
In response to climate change, the need for a transition to a low-carbon economy is highlighted, with India and UAE feeling most strongly, at 92 percent and 93 percent respectively.
To support the creation of a sustainable future for all, the study finds that digital technologies is the megatrend most likely to advance the wellbeing of the world, led by India (34 percent), the US (34 percent), China (32 percent), and the UAE (31 percent).
The study also notes the big exception for business to help lead the way to the future. India (95 percent) and the UAE (91 percent) feel most strongly, followed by the US (85 percent), France (84 percent), the UK (84 percent), and China (81 percent).
Ahmed Saeed Al Calily, chief strategy and risk officer, Mubadala, said: “As a responsible investor, Mubadala continues to execute our investment strategy in line with our convictions about how trends are shaping the world. We are investing in the energy transition, traditional and digital infrastructure, life sciences, and technology to achieve value creation while delivering a positive impact to communities and contributing to a sustainable future.”
The Megatrends Study follows the publication of the report by the UN Economist Network for the UN 75th Anniversary, which focused on five megatrends: climate change; demographic shifts, particularly population ageing; urbanization; the emergence of digital technologies and inequalities. According to the UN Economist Network, the megatrends ‘are the result of human activity, and as such, they can be shaped by human decisions and policy choices.’
In recent years, Mubadala has executed a number of deals in line with its convictions about trends. In 2020, the company made an investment of US $1.2 billion in Jio Platforms, a next generation technology platform focused on providing high-quality and affordable digital services across India. In the same year, Mubadala invested ₹6,247.5 crore in Reliance Retail Ventures Limited, India’s fastest growing and most profitable retail business with around 12,000 stores nationwide. In April 2022, Mubadala made the ₹4,000 crore acquisition of a stake with BlackRock Real Estate in Tata Power Renewable Energy Ltd. (TPREL) in April 2022 to support India’s renewable energy independence and transition. Tata Renewables aims to contribute 6 percent, or 30GW by 2030 with the energy portfolio aiming to displace almost 90 million tons of CO2 each year, as it replaces coal in India’s energy mix.
Khaled Al Qubaisi, chief executive officer at real estate and infrastructure investments, Mubadala, said: “Expanding our portfolio in India is a core pillar of our strategy as the market presents unique investment opportunities driven by megatrends such as climate change and technology. India is the world’s third largest energy consumer globally after China and the US today and has a strong ambition to grow its renewables capacity from 100GW to 500GW by 2030 to decarbonize its economy. At Mubadala, as a long-term partner of India, we support the country in its ambition, investing significantly in critical energy projects and innovative clean technologies that improve access to power, enable digital growth and accelerate socioeconomic progress.”
Other key findings noted by the Megatrends Study include:
Respondents strongly agree that inequalities impact the economy, society, and the political environment
Respondents agree urbanization brings significant economic and social advantages and disadvantages
Respondents are mixed on demographic shifts’ impact on quality of life. While India and the UAE feel this most strongly at 93 percent and 91 percent respectively, France and the UK rate the impact lower at 82 percent and 79 percent.