Investing in innovation: Energy transformation accelerates

2022 was a very eventful year. Inflation, the continued spread of Covid-19 – which led to divergent government reopening responses – and a land war in the breadbasket of Europe were all new things many of us have not seen in our lifetimes.

As we look ahead, we still believe we are in the initial stages of the Fourth Industrial Revolution, we still believe innova­tion is accelerating, and we still believe in the value of active management, particularly when investing in innovation.

2022 and 2023 will be remembered as the period when developed markets, specifically Western Europe and America, increased their focus on and investment in energy transformation from fossil fuels to renewables. The war between Russia and Ukraine was the spark. The resulting legislation from the US in the form of the Inflation Reduction Act and the expected matching legislation from the EU provide the economic incentive.