In an era of unprecedented change, investors seek clarity amid chaos.

Thematic strategies centered on global megatrends provide a roadmap for sustainable growth.

From climate adaptation to AI transformation, these trends redefine opportunities.

Balancing short-term volatility with long-term vision is essential for success.

The landscape is shaped by fragmentation and innovation.

A $9 trillion adaptation investment opportunity by 2050 underscores the scale at hand.

Embracing these trends can lead to resilient portfolios and a better future.

Climate Change, Adaptation, and Resilience

Climate change is no longer a distant threat; it is a present reality.

The world likely to overshoot Paris Agreement goals necessitates immediate action.

Adaptation and resilience are becoming central to economic strategies.

Investments in this area are poised to grow exponentially.

• Financing gaps require 12-14x current flows, with blended finance essential.
• Physical risks cost S&P 1200 companies $1.2 trillion annually by 2050.
• Carbon pricing now covers 28% of emissions, supporting decarbonization.

Practical steps include diversifying into climate-resilient infrastructure.

Focusing on projects in emerging markets can yield high returns.

Insurance products are evolving to cover climate risks.

Engaging with multilateral lending institutions is crucial for funding.

Energy Transition and Clean Technologies

Fossil fuels remain significant, but clean energy grows rapidly.

Solar and wind growth exceeds 17% in 2026, highlighting the shift.

AI data centers strain grids, using electricity comparable to India's total by 2030.

• Renewables face a slowdown in solar additions, but hybrid PPAs emerge.
• EVs achieve price parity in China, driving deflation and exports.
• Supply chain reliance on China poses risks for critical minerals.

Clean molecules like green hydrogen scale up with falling costs.

Investors should prioritize diversified energy sources.

Integrating storage solutions like batteries enhances grid stability.

AI, Technology, and Human-Machine Collaboration

AI boosts productivity but cannot offset aging labor pressures.

Human-machine collaboration enhances creativity and ingenuity in the new era.

2026 marks a transition from pilots to enterprise-wide AI deployments.

• Small teams scale faster with AI, emphasizing discipline and rapid testing.
• New resources include migration as economic infrastructure and trust as an asset.
• The race for earth orbit and deep-sea resources intensifies for critical minerals.

Talent management shifts to continuous learning and human-machine portfolios.

Leveraging AI for innovation acceleration is key to staying competitive.

Demographic Shifts and Labor Markets

Global aging accelerates, with over 10.5% aged 65+ by 2026.

Emerging markets face the fastest aging, impacting labor dynamics.

Large cohorts exit the workforce, and AI gains are insufficient to offset.

• Geopolitics limits immigration, exacerbating labor shortages.
• CGD forecasts explore workforce shrinkage by 2050 in various scenarios.
• Healthcare and pension systems require strategic investments.

Investors must consider demographic trends in long-term planning.

Adapting to an older population opens new market opportunities.

Geopolitics, Trade, and Supply Chains

Multilateralism fragments into multi-regionalism, with US-China divides.

Tariffs fuel persistent price rises, requiring diversified sourcing.

Supply chain risks include climate hazards and human rights monitoring.

• Critical minerals diplomacy becomes geopolitical, with tech chains at risk.
• Protectionism reduces sustainability policy support, competing with defense spending.
• Resilience in sourcing is paramount for long-term stability.

Businesses should develop contingency plans for trade disruptions.

Building robust supply networks mitigates geopolitical tensions.

Economic and Broader Forecasts

Real GDP trends show baseline growth projections from OECD.

CGD 2050 scenarios outline optimistic and pessimistic paths for global development.

Aviation aims for net-zero carbon by 2050, aligning with broader goals.

• Megatrends converge in a NAVI world: nonlinear, accelerated, volatile, interconnected.
• Investment frameworks like EY Futures Reimagined help navigate disruptions.
• Understanding these forecasts aids in strategic planning and risk management.

Staying informed on economic trends enhances decision-making.

Investment and Strategy Implications

Private sector must fill public funding gaps amid competing priorities.

Thematic opportunities in adaptation and cleantech supply chains are vast.

Risks include tariff volatility, energy strains, and labor shortages.

Frameworks emphasize AI as a collaborator, not a replacer.

Blended finance and critical minerals investments offer practical avenues.

Investors should adopt a long-term perspective, integrating these trends.

Continuous learning and adaptive strategies are key to thriving.

By focusing on megatrends, we can build a resilient future.

Embracing change with informed decisions leads to sustainable success.

Start by assessing your portfolio's alignment with these global trends.

Engage with experts and use tools to monitor developments.

Remember, the future belongs to those who prepare today.