- Climate change outstrips other megatrends as the greatest threat, impacting health, the environment and business, with India strongly feeling that this requires a transition to a low carbon economy, at 92%.
- India sees digital technologies presenting the greatest opportunity to advance wellbeing
- India also feels most strongly that demographic shifts impact quality of life, at 93%
- Megatrends Study highlights the important role played by business to help tackle the challenges posed by megatrends. India feels this most strongly at 95%.
- India scores almost every megatrend as having an impact on growth
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%), the UK (50%), the UAE (41%), and India (39%) agree most strongly that climate change is the biggest threat, while the US (29%) and China (27%) 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% and 93% 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%), the US (34%), China (32%), and the UAE (31%).
The study also notes the big exception for business to help lead the way to the future. India (95%) and the UAE (91%) feel most strongly, followed by the US (85%), France (84%), the UK (84%), and China (81%).
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%, 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 ambitions 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% and 91% respectively, France and the UK rate the impact lower at 82% and 79%
Mubadala’s interest in renewable energy spans more than 15 years and began when it founded Masdar, which is active in more than 35 countries across six continents, ranging from the world’s largest single-site solar power plant in the UAE with a capacity of 2GW to Indonesia’s first floating solar power plant, which will provide enough electricity to power 50,000 homes. Mubadala’s recent partnership with Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) on Masdar at the end of 2022 is designed to create a global clean energy powerhouse by propelling Masdar’s renewable power capacity to 100GW.