With the rapidly shifting demographics in the emerging markets, and in particular China, a host of opportunities are coming to the fore within the sustainable investment theme, with a particular focus on R&D and technological innovation.
Sustainable Investing in China
Even before the recent recession, emerging markets have been an exciting place to invest, with China, in particular, offering interesting investment opportunities at reasonable valuations. For those focusing on sustainable investment in the region, the time could not be better and there are still good opportunities to be found in the areas of transport efficiency, smart metering and water equipment, as well as medical technologies.
R&D and Innovation
One of the beauties of investing in China is that there is very good visibility into the areas that the central government is developing and investing in to sustain growth and create jobs. In a country with over 1.3 billion people, with massive migration from rural to urban areas, and a shrinking young labour force, ordered and planned investment is the key to deal with changing demographics and to encourage domestic consumption.