ESG creates a bubble and the next Amazon or Tesla: IIF

According to Tim Adams, president and chief executive officer of the Institute of International Finance, a bubble is formed when investors scramble to trade in the area of ​​sustainability.

In a panel at CNBC’s Sustainable Future Forum on Thursday, Adams said it is inevitable that current ESG (environmental, social and governance) initiatives will generate assets that exceed basic values.

“There’s always a bubble, and that’s a lesson in history. Anyone who thinks we don’t have it is naive,” he said.

“In an era of major technological or economic change, there is turmoil and a bubble. Now we see it in the crypto market. Throughout the 1990s, everything on the Internet soared in March 2000. And Weak companies have been washed away, new companies have been washed away. They have risen like Phoenix. Yes, there will be a bubble. Too few deals, too much money. “

Adams added that by implementing appropriate policies and a resilient financial system in the event of a bubble, we can continue to invest in promising companies in this area.

“We intend to mediate the entire spectrum in terms of continuing to invest in these new technologies,” he said. “Some prove to be infeasible, others prove to be very feasible. Companies you haven’t heard of will be the next. Amazon Also Tesla.. “

The global green technology and sustainability market, which was valued at $ 9.57 billion last year, is expected to be worth $ 41.6 billion by 2028. According to a July report from market research firm Fortune Business Insights.. in the meantime, Report released in April by consultancy Roland Berger Global revenues for environmental technology and resource efficiency are estimated to reach € 9.4 trillion by 2030.

Fiona Frick, CEO of asset management firm Unigestion, told the same panel that investors looking to take advantage of the Green Revolution shouldn’t see the biggest name in the field today.

“It is not [about] Invest in 10 or 20 renewable energy leaders today, but probably not yet aware that the market is on the road, so you’re probably investing in companies that aren’t trading at premium today Enlarge. It will probably be seen in three to four years. “

“The beauty of the climate revolution is [it will be a] A mess that affects all sectors, but affects all sectors differently, “Flick added.

“In other words, electric vehicles will appear in automobiles, and energy will change the way energy is generated. [construction] It will be the way they produce new types of cement. Each sector has a lot of potential to play that theme, as there are ways to do business more sustainably. It should not focus on the names of 20 people. “

ESG creates a bubble and the next Amazon or Tesla: IIF

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