Consumers across countries and demographic groups have expressed strong support for their governments to move away from fossil fuels to sustainable energy sources, despite feeling the pinch from rising energy prices, a new survey has found.
About 84 per cent of respondents emphasised the importance of their country’s shift to clean energy, according to the World Economic Forum-Ipsos global survey. This polled 22,534 adults in 30 countries, including the US, Canada, Ireland, Malaysia, South Africa and Turkey between February 18 and March 4 this year.
Although a majority of consumers worldwide expect their overall spending power to be "significantly" affected by further energy price increases, only 13 per cent of those surveyed blamed climate policies for rising prices.
“The energy transition has always been about security, affordability and environmental sustainability: the so-called energy triangle,” said Roberto Bocca, head of Shaping the Future of Energy and Materials platform at the World Economic Forum.
“The current geopolitical context makes it even more true today. This survey underlines that popular support exists for the transition to a new energy system that is more sustainable, secure and affordable.”
The Middle East and Central Asia face dire economic and financial consequences if nothing is done to address the worsening climate crisis, according to a separate International Monetary Fund report released on Wednesday.
The IMF’s managing director, Kristalina Georgieva, said climate change was already affecting people’s lives and livelihoods in the region and the problem is set to escalate if the world fails to rein in rising temperatures.
However, rising energy prices have pushed inflation to record rates.
Britain’s inflation rate surged to a 30-year high of 6.2 per cent in the year to February, adding to pressure on policymakers to protect consumers from the increasing cost of living.
Meanwhile, consumer inflation in the US rose to a 40-year high of 7.9 per cent over the past year in February, propelled by the increasing costs of food, petrol and housing.
Respondents to the WEF survey were asked to consider the energy they use for daily expenses — such as transportation, heating or cooling homes, cooking or powering appliances — and assess how much energy price increases would affect their overall spending power.
On average, although more than half of consumers (55 per cent) expect their overall spending power to be significantly affected by energy price increases, most people do not blame climate policies for rising energy costs.
Instead, the most cited reasons for the recent rise in energy prices were "volatility in the oil and gas markets" and "geopolitical tensions", according to 28 per cent and 25 per cent of the respondents, respectively.
Another 18 per cent cited insufficient supply to meet increased demand, 16 per cent said they were not sure, and only 13 per cent blamed climate change policies — the least cited reason on average.
While 84 per cent said it was important to them that their country shifts away from fossil fuels to more sustainable energy sources in the next five years, the numbers varied between countries, from 72 per cent in Russia (the lowest globally) and 75 per cent in the US to 93 per cent in South Africa and Peru. Citizens of emerging countries were keener to see a shift.
Although support for sustainable energy was strong among all demographic groups, slightly more women (87 per cent) thought it was important to move away from fossil fuels than men (81 per cent), the survey found.
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Your Guide to the Home
- Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
- Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
- Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
