The developed world is facing the need to transform its economy in order to meet Net Zero targets. This means a quick return to business as usual is most unlikely. Instead, we are entering a New Normal, where demand patterns will see major change:

Business

• Auto, consumer goods, electronics demand will focus on durability/sustainability
• Supply chains will be localised and reshoring accelerated in the western world
• New business models based on Recycling, Reuse and Redesign need to be developed and implemented

Finance

• Investors are focusing on the threat of stranded assets, as moves towards a Net Zero economy accelerate
• A number of major asset managers see this coinciding with a re-evaluation of current stock market valuations
• Demographic profiles are also evolving, as today’s ageing populations are essentially a replacement economy

People

• Lockdowns led many people to refocus on the home, and on the importance of family and friends
• They also proved a tipping-point in terms of the adoption of video tools for day-to-day communication
• Sustainability priorities have moved up the agenda, as people have learnt to value clear skies and fresh air