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This preface was originally written in Dutch. This is an English translation.
Resilience pays off
The global economy remains remarkably resilient, but the investment environment has not become any easier. Global growth is holding up for the time being, whilst higher energy prices are once again fuelling inflationary pressures. At the same time, long-term interest rates are at a significantly higher level than we have been accustomed to for a long time. For institutional investors, this means that economic growth, inflation, geopolitics and structural changes are becoming increasingly intertwined.
It is precisely against this backdrop that it is interesting to see how thinking on sustainability is evolving. For a long time, climate policy centred primarily on reducing CO₂ emissions and achieving Net Zero. Whilst this remains, of course, important, it is now becoming increasingly clear that the transition is much broader in scope. Biodiversity, natural resources, social issues, energy security and the resilience of economic systems also demand attention.
This broader perspective is central to the ‘Beyond Net Zero’ theme in this edition. During our round-table discussion on this topic, it emerged that the loss of nature is not only a social or ecological problem, but also a potential systemic risk to the economy and investments. At the same time, it is precisely here that opportunities are arising to deploy capital to strengthen natural systems whilst simultaneously generating financial returns.
We are seeing a similar trend with Social Bonds. The market received a massive boost during the COVID-19 pandemic, but is now evolving further towards more structural social objectives. Affordable housing remains a key theme, whilst issuers are increasingly focusing on specific target groups. At the same time, green and social objectives are converging. After all, an investment in renewable energy, for example, can also contribute to access to energy, employment and economic development.
The common thread is that sustainability can increasingly no longer be compartmentalised. Climate, nature, social impact and economic resilience influence one another and require a broader perspective from investors.
This ties in closely with our cover interview with Jorg Sunderman and Noortje de Beijer-van der Vorst of Cardano. They see the institutional investment world changing rapidly due to factors including demographics, climate change and the energy transition, as well as AI and automation. Their response to this uncertainty is not to try to predict the future with precision, but to work with scenarios, ensure the capacity to act, and build portfolios that can withstand different outcomes.
Perhaps that is also the unifying theme of this edition. In a world of major economic, technological and societal transitions, investing is not just about predicting what lies ahead, but above all about being prepared for multiple possible outcomes. Resilience pays off.
Enjoy reading!
Jolanda de Groot, Editor-in-Chief
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