Global Private Banking Investment Outlook Report Digital Transformation Amid slowing global growth, Smart Mobility 1) The integration of smart technologies trade tensions and high inflation, Rarely do several separate strands of into the infrastructure and the governments, corporates and technology converge in the ways we modes of transport that facilitate the consumers have shifted priorities are seeing in the transportation sector movement of people and goods. in an attempt to limit the impact of and these technologies will transform 2) The beneficiaries of limiting the use of those disruptive forces by focusing many aspects of the way people travel fossil fuels in transportation. on things like alternative sources both locally and over long distances. Let’s look at a practical example of of energy and supply chains’ Smart mobility has multiple benefits as it each to illustrate how this is already reconfiguration. Where does this increases access; provides alternatives; happening in the real world. leave the global wave of digital improves the experience and expands transformation? options. Our investment theme focuses Over the last two decades, leisure and on two key areas: business travel has been transformed at almost every step by automation and Our two high conviction themes digitisation. A new wave of innovations is being unleashed as 5G networks and 1. Smart Mobility Global CO2 emissions from transport by sub-sector in the Net Zero Scenario, 2. Total Security 2000-2021 Road Rail Shipping Aviation ipeline anspotation We think it actually provides 9 renewed impetus to digitisation. 8 The diversification, shortening and automation of supply chains that 7 companies are seeking often involves 6 much more digitisation. And the 5 efficiency drives to tackle inflation often lead to manually intensive processes 4 being substituted for digital alternatives. 3 Digital technologies are transforming Gigatonnes of CO2 society both by substituting existing 2 technologies or processes or devices, 1 and also by opening up new avenues of 0 doing things. 2000 2003 2006 2009 2012 2015 2018 2021 Source: International Energy Agency, HSBC Global Private Banking as at 22 November 2022 20