INVESTMENT OUTLOOK FOR 2023 - 19 - ENVIRONMENTAL THEMATICS ULRIK FUGMANN EDWARD LEES Co-head environmental Co-head environmental strategies group strategies group History can help assess the future Understanding the drivers of past industrial revolutions can be invaluable when assessing long-term investment opportunities such as those presented by the effects of climate change and the current energy crisis. What the lessons can investors draw from economic history? Even amid the headwinds from crises such as the food and energy supply stress and extreme climate phenomena, the world is on the cusp of a new industrial revolution – one that could allow capacity – and resources – to be used more efficiently and lead to a greener and more sustainable future. ‘Industry 4.0’ – involving such advances as the smart factory, autonomous systems, 3D printing and machine learning – promises to provide us with the tools for a replenished biosphere, greater energy and food security, and improved living standards and job opportunities. It also looks set to usher in a sharing economy involving ‘open source’ approaches to information and innovation which can accelerate change including the energy transition. A practical example: in such a setting, people will more rarely own cars; they will simply hire a (probably autonomous electric) vehicle when they need to.