Three unstoppable trends in a sustainable future – 2 fund ideas to benefit

Next week is Good Money Week.

It’s a national campaign that aims to raise awareness of responsible investing.

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.

Now could be a great time to check if your portfolio is positioned to benefit from the long-term trends shaping a more sustainable future.

We explore three powerful structural shifts and how investors could stand to gain.

This article isn’t personal advice. Investments can rise and fall in value, so you could get back less than you invest. If you’re not sure if an action is right for you, ask for financial advice.

The energy transition

The first trend is the global shift from fossil fuels to cleaner, low-carbon sources like wind, solar, and nuclear. It also includes electrifying sectors that currently rely on oil or gas – from vehicles to home heating like heat pumps.

Countries around the world have committed to achieving net zero carbon emissions, with 123 nations setting official targets. The UK was the first major economy to make a net zero goal legally binding, aiming to reach it by 2050. This commitment is shaping national energy policy, driving investment in offshore wind, electric vehicle infrastructure, and nuclear capacity.

The energy transition will also help meet a growing need for energy security, relying less on global imports.

Circular economy and waste reduction

We produce over two billion tonnes of waste each year, a figure set to grow by 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.

Industries from fashion to electronics are responding too, 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. These advances have the potential to improve outcomes, cut costs and expand access to care.

2 fund ideas that 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 we think 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.

Investing in these funds isn’t right for everyone. Investors should only invest if the fund’s objectives are aligned with their own, and there’s a specific need for the type of investment being made. Investors should understand the specific risks of a fund before they invest, and make sure any new investment forms part of a diversified portfolio.

For more details on each fund and its risks, use the links to their factsheets and key investor information.