Clean Disruption Fund

Clean Disruption Trend: Why invest?

Globalisation, mass production, improved healthcare has helped us prosper. In the last 50 years, world population doubled, infant mortality halved and we've seen 50% increase in life expectancy. But this has come at a cost. Since 1970, a third of arable land vanished, 50% of the world's biodiversity disappeared, 2.4 billion people don't have access to clean water. 

There's accelerating awareness of the need to build a more sustainable world for future generations. We need to halve emissions, double our energy capacity (in an efficient manner) and process double the current levels of waste.⁵ 

Hear from our team behind the Clean Disruption Fund

The clean disruption of energy has the potential to impact all industries.

It will pave the way for new markets, and significantly transform adjacent industries such as:

Clean disruption in transportation

The development of more efficient battery storage has spurred the creation of the electric motor. An electric motor is 5 times more energy efficient than a typical internal combustion engine fuelled by petrol, 10 times cheaper to run and has significantly less moving parts resulting in less maintenance costs⁷. Further, technological developments in computer processing power, graphics hardware and big data software have also fuelled the trend of self-driving or fully autonomous vehicles. 

The global autonomous vehicle market is expected to grow at a growth rate of 39.6% per year between 2017 and 2027, reaching US$126.8 billion by 2027. It grew 54% in 2017 to encompass 3.1 million vehicles globally and is expected to reach 125 million vehicles by 2030.^8,9 

In the next few decades, autonomous vehicles will have a significant impact on the logistics and transportation industries, as well as our city landscapes potentially resulting in a need for less roads and parking spaces. If deliveries can be better handled by light and heavy autonomous vehicles, and buses and trains can be also automated, this will divert labour resources to other industries.

Automation will also vastly improve the utilisation of our vehicles. Vehicle utilisation currently sits at around 4% as they are parked and sitting idle for 96% of the time.¹⁰ Autonomous vehicles will make ride-sharing services such as Uber and car-sharing services such as Zipcar even more efficient and may eventually lead to the end of car ownership for a portion of the population. This will have flow on effects to insurers as well as consumer behaviour, who suddenly have more time on their hands while they are commuting but no longer driving.

Clean disruption in manufacturing

The development of automation, 3D printing and artificial intelligence has created various efficiencies in the manufacturing process for many industries. However, an often-overlooked facet of manufacturing disruption is how the actual process can also be improved from an energy efficiency perspective, with the increasing use of sensors, connectors and controls. It's estimated that the global connector market will be US$60.5 billion in 2018, while the sensor market is about US$120 billion in size with the growth being driven by the demand for higher levels of productivity, efficiency, functionality, miniaturisation and increasing electronics content in the manufacturing process.¹⁰

Clean disruption in recycling and waste management

The world’s cities produce 1.3 billion tonnes of solid waste each year with the amount expected to increase to 2.2 billion tonnes by 2025 due to population growth and urbanisation.¹¹ 

This is creating an opportunity for companies who can help alleviate the growth in waste either by using recycling technology, creating biofuels from waste materials or finding improved and alternative ways to dispose of and treat solid waste – potentially up to US$2.9 trillion in savings can be achieved in 2030 by being more productive with our resources.¹²

Clean Disruption Trend: PDS, TMD & Fact Sheet

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Clean Disruption Trend: What companies?

The Clean Disruption Fund will invest in leading global companies, which are benefitting from our understanding and willingness to build a more sustainable world and global economy. These include companies focused on energy storage, renewable energy sources, recycling and waste management as well as other companies benefitting from improvements in energy efficient technology such as automotive, manufacturing, building materials and lighting companies.