The global population is growing at an exponential rate. Consider this – from the beginning of mankind 160 thousand years ago until 1945 AD, the earth’s population grew to a total of two billion people. But in just 65 years since 1945, our population has tripled to six billion and will grow to over nine billion by 2050.
Most growth will occur in developing nations, creating unprecedented pressure on natural resources such as energy, food, water, timber and land. Increasing demand for food, infrastructure and health services will have to be met. Waste and pollution will have to be managed.
But we’re also facing an aging population. Around one fifth of the population in the developed world is now over 60. By 2050 one third of all people will be over 60.
With so many people close to or in retirement, there will be less taxation and less overall savings impacting upon economic growth, investment patterns, labour markets, government pension schemes and superannuation planning.
Responsible investments analyse these long-term trends to identify companies that are positioning themselves to meet the needs of a growing and aging population. Those industries include health and aged care, progressive and responsible finance, mass transit, new models of education and energy efficiency and renewable energy.
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