Despite efforts at sustainability, the expanding size and prosperity of the global population is leading to rapid consumption of the planet’s non-renewable resources, leading to increased competition for the world’s scarce resources. The expanding and ageing global population and the development of new technologies and the global economy will put increasing pressure on natural resources so that shortages of basic commodities, such as water, could be seen.
By 2035, the Asia Pacific region will comprise 47% of the world’s energy demand, and despite efforts to pursue renewable energy, most of this will come from fossil fuels with the remainder coming from nuclear, bioenergy, hydro and other renewables.
Around, 20% of worldwide energy consumption could be saved through energy efficiency measures.
Pressure on natural resources and the impact of climate change will have a fundamental impact on the way people live and companies do business.
These environmental and economic threats are going to be key drivers of government policy over the coming decades. They’re also going to reshape risk profiles and investment priorities across all industries, including financial services.
At the same time, these developments will open up new markets for businesses that understand the changing dynamics of supply and demand, and know how to mitigate the risks.
Q: Do you see your organisation needing to take a more proactive approach around the war for natural resources?