From climate change to resource scarcity and shifting consumer values, structural forces are reshaping how we live our lives. Governments are spending billions to accelerate the shift to a lower-carbon, more sustainable economy. Companies that can adapt could be well-positioned to thrive.
Next week is Good Money Week. It’s a national campaign that aims to raise awareness of responsible investing. It could be a great time to check if your portfolio is positioned to benefit from the long-term trends shaping a more sustainable future. Here are three powerful structural shifts and how investors could stand to gain.
- The energy transition
The world is moving from fossil fuels to low-carbon sources like wind, solar and nuclear, and the electrification of industries from transport and to home heating is accelerating.
Countries around the world have committed to achieving net zero carbon emissions, with 117 nations setting official targets, and governments are backing the transition with serious spending. That means growth potential in everything from grid infrastructure to offshore wind.
- Circular economy & resource efficiency
We produce over 2 billion tonnes of waste each year, a figure set to rise 80% by 2050. Valuable materials are being lost, oceans are filling with microplastics, and supply chains are facing rising costs.
With rising waste levels, resource scarcity, and tighter regulation, the world is shifting towards a circular economy – one that focuses on reusing, recycling, and reducing waste across supply chains.
Governments are backing the shift with policies like bans on certain single-use plastic items, and schemes to make companies responsible for the entire lifecycle of their products and packaging, including what happens after they’ve been used. Forward-thinking companies are responding by rethinking their business models to reduce waste.
- Healthcare innovation
By 2050, one in six people globally will be over 65, putting increasing pressure on healthcare systems. At the same time, chronic conditions like diabetes and heart disease are growing rapidly worldwide.
Healthcare is evolving fast in response. One of the most exciting drivers is artificial intelligence. It’s already helping doctors detect diseases earlier and more accurately, boosting biomedical research efforts, and enabling more personalised treatments.
How investors could benefit
Identifying themes for the future is only one part of the puzzle. The more difficult part is finding the companies that are best placed to benefit from them. That’s why it’s best to entrust your investment to an experienced fund manager, whose full-time job revolves around scouring the market for the best opportunities.
Liontrust SF Corporate Bond
The Liontrust SF Corporate Bond fund aims to deliver a combination of income and capital growth over the long term by investing mostly in sterling-denominated, investment grade corporate bonds.
The investments within the Liontrust SF Corporate Bond fund can broadly be split into three buckets – greater safety and resilience, better resource efficiency and improved health. Within these three buckets, there are various sub-themes, like ‘increasing electricity generation from renewable sources’, ‘delivering a circular materials economy’, and ‘enabling healthier lifestyles. This means it provides exposure to all three inevitable themes, as well as many others.
FP WHEB Sustainability Impact
The FP WHEB Sustainability Impact fund invests globally in companies making a positive difference to the environment and society. The team behind the fund focuses on nine sustainable investment themes, ranging from cleaner energy and resource efficiency to environmental services, health and wellbeing.
The positive impact that each investment has is measured, so it’s possible to calculate the environmental and social benefits that your investment creates. For example, £20,000 invested into the fund throughout 2024 helped:
- Generate 10 MWh of renewable energy
- Avoid 14 tons of carbon dioxide emissions
- Provide one person with improved healthcare treatment
- Treat 900,000 litres of wastewater for reuse”
Fund performance (percentage growth)
| 1 year | 3 year | 5 year | |
| (31/08/2024 to 31/08/2025) | (31/08/2022 to 31/08/2025) | (31/08/2020 to 31/08/2025) | |
| Liontrust Sustainable Future Corporate Bond | 3.06 | 16.94 | -0.59 |
| FP WHEB Sustainability Impact Fund | -6.93 | -2.7 | 6.71 |
By Dominic Rowles, lead ESG analyst, Hargreaves Lansdown
