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Incorporating megatrends into portfolio and business planning

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By Tom Brooke-Smith | June 28, 2018

Tom Brooke-Smith delves into why investors and business leaders should incorporate a megatrend framework into their decision-making process.

What is a megatrend? It can be defined as anything that has transformational impacts across society, technology, economies, environment and/or politics.

For us, megatrends also alter the structure of economies, industry and capital markets. We believe investors and business leaders should incorporate a megatrend framework into their decision-making process, identifying areas of opportunity but also key risks that require hedging.

Any list of megatrends will be subjective in nature but needs to be finite. Our taxonomy has been developed in concert with the Thinking Ahead Institute members and the PRI Association, giving us the opportunity to test it through a survey of the investment institutions in PRI’s signatory list. The framework focuses on five key megatrends with 21 underlying impactful sub-trends. We outline this as follows:

  1. Technological advances
  2. Environmental challenges
  3. Globalization and connectivity
  4. Society and demographics
  5. Emerging economy growth and dynamism

Download our paper to read more about megatrends — and why investors and business leaders should incorporate a megatrend framework into their decision-making process.

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