The Global Macro Transition
Co-Chief Investment Officer | Bridgewater Associates
Founder and Chairman | Hillhouse
CEO | Fidelity International
CEO | Future Fund
Following the Covid-19 crisis, demand recovery stemming from a long period of unprecedented policy support, coupled with supply chain challenges, have resulted in elevated inflationary pressures and further worsened social inequality. Also, as policymaking normalises in more markets, another material round of stimulus (absent a negative shock) is unlikely in the short term, resulting in a shift towards the private sector as the key driver of growth. In China, however, we see this moving in the opposite direction with easier policy aimed at macro stabilisation.
Given record high public debt, stretched valuations, and increasing geopolitical fragmentation, the transition path is unlikely to be smooth. What are the actions needed in the major economies to sustain growth that is also resilient and equitable, and how will this impact the investment environment?
The Digital Economy Transition
Co-Founder and CEO | Anchorage Digital
Founder and Chairman | Bank Jago
Managing Director | Monetary Authority of Singapore
Covid-19 has helped accelerate widespread digitalisation in many areas, including commerce, operations, systems, services, data and content. Rapidly advancing technologies such as blockchain, web 3.0 and the metaverse will transform the ways we consume, work and do business globally, further intensifying disruption risks in the years to come. There are also growing concerns about the evolving means of economic activity, competition, online data privacy, and cybersecurity. As we transition towards an ever digitalised economy, what are the implications for regulation and the role of big tech, and which sectors will see greater risks and opportunities?
The Sustainability Transition
Co-Managing Partner | The Rise Fund by TPG
CEO | InterContinental Energy
Sustainability is a key investment issue given its impact across every asset class and sector. While it is critical to support companies in their efforts towards more sustainable business practices, significant capital is also needed to invest in and scale up the low-carbon solutions required to accelerate the green transition. During this session, two innovative companies – each making a meaningful difference in the ESG space – will share more about their businesses, challenges and the broader implications the sustainability transition has had on their respective industries.
Roundtable Discussions in Partnership with FCLTGLOBAL
Taking Action to Navigate a World in Transition
Balancing Resilience and Agility to Deliver Long-term Performance
Companies were rewarded in the past for perceived efficiencies and lean balance sheets, tight supply chains, just-in-time delivery, and returning capital to shareholders to the fullest extent possible. Now, companies are facing disruptions across many fronts including shifting macroeconomics, rapid technological change, sustainability imperatives, or other important trends. As a result, companies are trying to build resilience, or the ability to withstand or adapt to disruption, into their operations and their balance sheets. The challenge is that many diversified investors see resilience as bloat. Activists see opportunities to come in and cut. And boards may look for the short-term returns that efficiency can bring. How can companies best build long-term resilience into their business to manage big shifts in our environment while staying agile and lean? How can investors evaluate and appropriately value that resilience, enabling companies to maintain a focus on long-term performance?
To address these questions, GIC is partnering FCLTGlobal to bring its unique roundtable format to GIC Insights 2022. Following an introduction by FCLTGlobal CEO Sarah Williamson and a firestarter by FCLTGlobal Board Chair Theresa Whitmarsh, the session will involve an interactive discussion among GIC Insights guests on how to create more resilient and agile organisations in response to today’s challenges.
The Geopolitics of the Energy Transition
The transition of the global energy sector towards lower carbon emissions has been embraced around the world. But the transition is proving more complex and challenging than many have assumed and is unlikely to be a smooth journey. Renewable costs have come down dramatically, but the world continues to depend on hydrocarbons for over 80% of its energy. The global energy crisis that began in the second half of 2021 was generated by the economic rebound from the Covid-19 lockdown and “preemptive under investment” in energy resources.
The crisis has been since amplified by war and geopolitical turmoil. Energy security has returned to the top of the agenda, as countries face supply shortages and skyrocketing prices. Governments are struggling with the economic impact and competing priories, while investors are redirecting capital. The energy transition is moving at different paces in different parts of the world and with different approaches, which is embodied in a new North-South divide.
The future role of the oil and gas industry will be partly determined by what happens with technologies such as carbon capture and the adoption of hydrogen in the current energy systems. The rapid shift towards electrification will put growing stress on the supply chains for minerals to meet “energy transition demand”, and critical questions for the future will include the speed at which those supply chains can respond and their impact on costs. All of these issues will be made more difficult as they unfold in a more contentious world shaped by a new fragmented geopolitical order.
Daniel Yergin, Pulitzer Prize-winning author of The Prize and The New Map, and Vice Chairman at S&P Global, will take the audience through the state of today’s energy markets, the opportunities and challenges presented by the transition from hydrocarbons to renewables, and the intersection of this transition and the challenging geopolitical environment.