Environmental trends such as increasing resource insecurities are changing the nature of investment opportunities and demand for risk protection. At the same time, with consumers increasingly incorporating sustainability into purchasing decisions, the importance of socially responsible behavior is rising up the investment management agenda.
Accelerating environmental degradation, combined with the need to meet the world's demand for fundamental commodities, such as energy, water, food and rare metals is presenting issues such as the risk of supply disruption, volatile pricing and growing potential for conflict. The search for alternatives presents not only an environmental priority, but also offers a range of new investment opportunities.
With younger generations being increasingly critical of unethical behavior, investors will expect social and ethical responsibility in all aspects of corporate operating practices.
Demographic trends will affect investment management industry. Trends magnify need for effective management and will radically change client base.
Social media presents considerable opportunities and challenges to the investment management business models when trust in financial services is low.
Technology drives of social, economic and environmental change and is enabling solutions to deal with many investment management industry challenges.