Sara Bourhime, deputy head of sustainable investment, Mirabaud Asset Management
Demographics are an important structural component influencing economic and sustainable development. Population expansion, migration and urbanisation all have an impact on demographic changes, causing alterations in saving, spending, investment trends but also place strain on natural resources.
Secondary factors such as labour scarcity increasing workers’ bargaining power and higher investment to manage costs influence the impact of an expanding population on investments. Factors like as automation, technical advances, climate change, and the carbon transition complicate the economic impact while also providing chances for innovation and productivity increase.
In the context of sustainable investment, companies embracing sustainable practices and innovation will be well positioned to capitalise on changing demographics and natural resources management. Examples include renewable energy companies focused on clean power generation, technological companies providing resource efficiency solutions, healthcare providers catering to elderly populations, and so on.
Analyses focusing on demographic megatrends in the economic landscape can help discover enterprises with high growth potential. These opportunities, however, are not without risks. By recognising the significance of long-term perspectives, market specificities and regulations, businesses must handle ESG concerns proactively while guaranteeing the long-term viability of their financial models and strategic approaches.
As population dynamics’ shift, the need for more inclusive and sustainable development models becomes even more essential. It is vital to manage our planet’s natural resources in ways that benefit current but also future generations, therefore considering both the environmental and social inter-connections and impacts.