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This year, August 1 is Earth Overshoot Day, which marks the date when humanity’s consumption of ecological resources and services exceeds what Earth can regenerate in that same year.

While there is debate about how to calculate Earth Overshoot Day, it should not distract from the fact that Earth’s capacities are limited. This has implications for our current economic model and for investors.

In order to adapt, we need to identify which economic activities or sectors will be most affected by these restrictions, how these sectors can respond, and what investment opportunities are likely to arise in this new environment.

In our new 'CIO Special – Circular materials use: the need for change', we consider possible new approaches for the production of aluminium, steel, cement and plastic along with related future investment opportunities.

 

Key takeaways:

  • “Business as usual” for materials production and use is reaching its limit, implying major sectoral change ahead.
  • We consider possible new approaches for production of aluminium, steel, cement and plastic along with related future investment opportunities.
  • Emerging market firms are increasingly important in the materials sector. Their sustainability measures are improving but a number of market risks remain.

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The CIO Special below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.

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