Climate change: a sustainable investing megatrend
We discuss five megatrends related to climate change and the investment implications.
A walk in a smart city
Significant growth opportunity lies ahead as over 150 cities2 around the world have officially adopted a ‘smart city’ strategy, tapping into technological innovation to make cities more efficient.
Smart solutions are not limited to installing digital interfaces in traditional infrastructure or streamlining city operations. It is also about using technology and data purposefully to make better decisions and to help improve the quality of life. And companies that are harnessing such smart technologies present long-term investment opportunities1.
Cooling systems in a smart city
Centralised smart cooling systems could bring a new way of life to cities near the tropics.
Such smart cooling systems harness chilled water that is generated from highly energy-efficient chiller plants to produce cool air for homes and buildings3.
Government investments to upgrade city infrastructure present opportunities for companies to innovate and provide the leading-edge technologies for such systems. For example, some companies have continued to develop integrated solutions that can transform visually more comfortable smart lighting systems into a platform for data-driven applications. Powered by human-traffic sensors, these lighting systems know how to switch off automatically when public spaces are unoccupied, translating into energy- and cost-savings for a smart city4.
No more ‘jams’ in the city?
Traffic congestion is generally a major issue in most cities around the world, with increased use of vehicles on the roads. Still, smart technologies have started to transform the way people move around in cities.
Take Singapore as an example, real-time traffic data on bus arrivals, taxi availability, traffic conditions and carpark spaces are shared with residents to help manage, or even avoid traffic congestions.
Crowding issues on buses have been reduced by 92%5. Going forward, Singapore is also looking to adjust traffic light timings and provide traffic light priority for buses, allowing shortened wait and travel times.
Continuing advancements of autonomous driving technology are making good progress in improving the safety of semi-autonomous vehicles on the roads. Sensor technologies or advanced driver assistance systems enable the digitalisation of information for control and communication, and allow the automation of certain functions. For example, adoptive cruise control, parking assist and fatigue recognition are becoming more common fixtures in motor vehicles.
We expect mass market adoption of autonomous vehicles could markedly improve road safety and reduce traffic congestion and carbon dioxide emissions, enhancing the quality of lives of many.
How we are harnessing AI in our asset allocation strategy1
Financial professionals and investors have generally referenced regulatory filings, company profiles, reseach reports and news reports in their research process. Using natural language processing, our innovative and proprietary ThemeBot AI tool6 helps our investment professionals rapidly analyse hundreds of millions of data sources as well as screen more than 10,000 stocks globally.
ThemeBot is a key AI tool that enables JPMorgan Future Transition Multi-Asset Fund to seek out opportunities in evolving future transition trends. ThemeBot helps identify smaller, early stage opportunities as we build thematic investment strategies.
The tool uses textual relevance and revenue attribution to generate a list of stocks associated with a theme. Its output is then validated and refined by our team of experienced investment professionals – combining artificial and human intelligence for stronger outcomes.
Key highlights of the Fund6
AI, robotics and IoT are bringing rapid changes in smart cities and more governments are adopting new technologies to improve urban planning, and achieve a more sustainable living environment. Companies tapping into technological innovation that helps make cities more effective and efficient are presented with long-term growth opportunities1.