Currently transport contributes to 23% of global greenhouse gas emissions from fuel combustion (source: World Bank), making it a significant target for government curbs. This risk presents an opportunity for companies at the forefront of pioneering new energy technologies, vehicle efficiency, and public transport infrastructure. For example, advances in lithium-ion (Li-ion) battery technology mean that fully electric vehicles are becoming a more viable option for the average consumer in terms of cost, range (distance per charge), and driving experience (eg, low noise, zero emissions, greater internal space), such that they could challenge the dominance of combustion engines and traditional auto manufacturers within the next 10 years. Public transport, including rail and bus networks, is an important area of investment for reducing emissions, noise pollution, and congestion through shared journeys. Additionally, cycling is increasingly being promoted by governments for health and environmental reasons, which is supportive of companies with goods and services linked to it.

The World Health Organization estimates that 1 in 10 people globally lack access to safe water, while 1 in 3 lack access to proper sanitation. It is expected that half of the world’s population will be living under the threat of water scarcity by 2030. Water is under growing pressure both on the supply side (insufficient fresh water, uneven distribution, poor quality, climate change) and the demand side (increasing use in agriculture, industry, and municipal/residential areas). Governments cannot act alone to solve shortages – significant investment is required in infrastructure, alongside behavioural changes among all consumers to bridge the supply gap.

If the world economy is to limit the increase in global average temperatures to 2 degrees over pre-industrial levels, then investment in renewable energies is going to be crucial. The price of wind and solar power continues to decline, and is now on a par with, or cheaper than, grid electricity in many countries. Solar makes up less than 1% of the electricity market, but could become the world’s biggest single source of renewable energy by 2050, according to the International Energy Agency. One exciting development for the market is the falling costs of viable energy storage solutions: storage can help smooth the peaks and troughs associated with variable output from solar and wind farms.

Roughly two thirds of primary energy contained in fossil fuels globally is wasted. Efficiency improvements are vital if we are to achieve economic growth while keeping carbon emissions within recommended levels. Changes will not just be needed within the industrial and transportation sectors: residential and commercial buildings are the largest and most inefficient users of energy globally. Incandescent light bulbs are an extreme example of energy loss; in contrast LED bulbs can be 90% more efficient and last 10 times longer.

As the global population continues to grow and urbanise, cities are facing a sharp rise in the volume and costs of their waste. The World Bank estimates that if no steps are taken, the amount of global solid waste produced is on course to exceed 11 million tonnes per day by 2100, three times as much as produced currently. Rather than being recycled, the vast majority of waste that is collected goes straight to landfills or is incinerated, releasing lethal toxins, greenhouse gases and leachate (liquids). Companies involved in waste management, recycling, and environmentally-focused engineering and infrastructure consultancy companies will be at the forefront of enabling this to change.

There are several key aspects to this theme including workplace safety, road safety, consumer safety, and safety from cyber-attacks and financial crime. According to the World Health Organization injuries continue to kill more than 5 million people each year. Of this, about 2.3 million people die as the result of workplace accidents or occupational illnesses, and road traffic injuries claim around 1.25 million lives. Outside of these figures, many more people are seriously injured or left with permanent disabilities. In the area of consumer goods, complex global supply chains mean extra vigilance is required for assuring the safety of food and household goods/products. Lastly, cyber-attacks are growing in sophistication and frequency, resulting in an increased demand for cybersecurity.