As the world’s investors continue to negotiate with and navigate an increasingly complex international investment landscape and deploy capital to create a sustainable future, Mubadala Investment Company (Mubadala) is launching its Megatrends Study with Bloomberg Media, showing how climate change is a growing threat to India and the world and digital technologies serve as the greatest opportunity for a better future.
Based on a survey of over 1,800 global investors, engaged and inform Millennials, and Gen Z consumers from India, the UAE, UK, US, China and France, the study finds climate change outstrips other megatrends on being the greatest risk to the wellbeing of the world, impacting health, the environment, and business.
France (52%), the UK (50%), the UAE (41%), and India (39%) agree most strongly that climate change is the biggest threat, while the US (29%) and China (27%) see climate change almost on par with the impact of demographic shifts and inequalities.
In response to climate change, the need for a transition to a low-carbon economy is highlight, with India and UAE feeling most strongly, at 92% and 93% respectively.
To support the creation of a sustainable future for all, the study finds that digital technologies is the megatrend most likely to advance the wellbeing of the world, led by India (34%), the US (34%), China (32%), and the UAE (31%).
The study also notes the big exception for business to help lead the way to the future.
India (95%) and the UAE (91%) feel most strongly, follow by the US (85%), France (84%), the UK (84%), and China (81%).
Ahmed Saeed Al Calily, Chief Strategy and Risk Officer, Mubadala, said :
The Megatrends Study follows the publication of the report by the UN Economist Network for the UN 75th Anniversary, which focus on five megatrends: climate change; demographic shifts, particularly population ageing; urbanization; the emergence of digital technologies and inequalities.
According to the UN Economist Network, the megatrends ‘are the result of human activity, and as such, they can be shaped by human decisions and policy choices.’
In recent years, Mubadala has execute a number of deals in line with its convictions about trends.
In 2020, the company made an investment of US $1.2 billion in Jio Platforms, a next generation technology platform focus on providing high-quality and affordable digital services across India.
Mubadala invest ₹6,247.5 crore in Reliance Retail Ventures Limited, India’s fastest growing and most profitable retail business with around 12,000 stores nationwide.
In April 2022, Mubadala made the ₹4,000 crore acquisition of a stake with BlackRock Real Estate in Tata Power Renewable Energy Ltd. (TPREL) in April 2022 to support India’s renewable energy independence and transition.
Tata Renewables aims to contribute 6%, or 30GW by 2030 with the energy portfolio aiming to displace almost 90 million tons of CO2 each year, as it replaces coal in India’s energy mix.
Khaled Al Qubaisi, Chief Executive Officer at Real Estate and Infrastructure Investments, Mubadala, said :
Other key findings noted by the Megatrends Study include :
- Respondents strongly agree that inequalities impact the economy, society, and the political environment
- Respondents agree urbanization brings significant economic and social advantages and disadvantages
- Respondents are mixed on demographic shifts’ impact on quality of life. While India and the UAE feel this most strongly at 93% and 91% respectively, France and the UK rate the impact lower at 82% and 79%
Mubadala’s interest in renewable energy spans more than 15 years and began when it founded Masdar, which is active in more than 35 countries across six continents, ranging from the world’s largest single-site solar power plant in the UAE with a capacity of 2GW to Indonesia’s first floating solar power plant, which will provide enough electricity to power 50,000 homes.
Mubadala’s recent partnership with Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) on Masdar at the end of 2022 is design to create a global clean energy powerhouse by propelling Masdar’s renewable power capacity to 100GW.