Investors are seeking innovative strategies to drive growth and make a positive impact, according to the latest research released from BNP Paribas and Coalition Greenwich.
The latest Thematics Barometer by BNP Paribas Asset Management (BNPP AM) and BNP Paribas CIB, in partnership with Coalition Greenwich, provides valuable insights into the trends shaping the landscape.
Thematic strategies focus on identifying long-term structural themes and providing solutions driven by the overarching megatrends of technology, socio-demographics, and sustainable developments.
The benefits of such strategies are clear in this year’s survey: 63% of investors in this year’s survey cite achieving positive impact and contributing to sustainable outcomes as their leading objective, followed by improved investment returns. Innovative and disruptive nature of thematic investing, driven by interest in artificial intelligence, is also a growing trend according to the results.
The latest survey also reveals that investors are increasingly committed to thematic investing, with 89% of respondents familiar with the concept. European investors continue to lead the way, with an increase in adoption from 46% to 61% since 2020.
Beyond the net zero transition, this year’s survey results found that investors are also increasingly interested in thematics such as gender diversity, demographic inequalities and addressing water resource management.
❝ The ongoing thematic focus of investors on renewables and clean energy, alongside an evolving interest in resilience, water, adaptation, AI and demographics in this years’ survey, highlights the importance investors place on these issues. The opportunities these themes present as a performance driver also provide important insights on the investment horizon ahead. ❞
According to Constance Chalchat, Chief Sustainability Officer, BNP Paribas CIB and Global Markets, “The results demonstrate how investors continue to be increasingly interested in sustainability thematics. The ongoing thematic focus of investors on renewables and clean energy, alongside an evolving interest in resilience, water, adaptation, AI and demographics in this years’ survey, highlights the importance investors place on these issues. The opportunities these themes present as a performance driver also provide important insights on the investment horizon ahead.”
Further findings highlight several important themes that are driving interest in thematic investing. Renewable & Clean Energy continues to be the leading sustainability theme from the surveyed respondents, with 56% to 60% of investors interested in these thematics. Artificial Intelligence is the favourite innovation and disruption theme, with 74% of investors interested in these themes. Mobility is another growing theme, with interest almost doubling from 6% in 2023 to 11% in 2024.
❝ With the increasing pace of change in the economy, investors have told us in this survey that they continue to commit capital to thematic investments driven by the search for impact and investment returns. Thematic investments provide an alternative to traditional strategies and are a compelling way for investors to align portfolios with the trends shaping the future. ❞
Pieter Oyens, Global Chief Marketing Officer at BNPP AM, notes, “With the increasing pace of change in the economy, investors have told us in this survey that they continue to commit capital to thematic investments driven by the search for impact and investment returns. Thematic investments provide an alternative to traditional strategies and are a compelling way for investors to align portfolios with the trends shaping the future.” As the investment landscape continues to evolve, thematic investing is likely to play an increasingly important role in investors’ portfolios.