However, there are direct environmental and societal challenges stemming from current transportation networks as transportation ranks as one of the most material contributors to carbon emissions globally, at around 25%. Equally, with increasing urbanisation, congestion in cities both stifles economic activity and leads to poor health and fatalities, both directly through road traffic accidents, with around 1.3 million fatalities per year as a direct result of traffic related incidents, and indirectly through air and noise pollution.
The disruption during the COVID-19 pandemic has drawn attention to the wastefulness of some of our transportation use, and could lead to permanent changes in areas such as home working and business travel. Some governments have also been prompted to invest more in areas such as cycling infrastructure to enable more sustainable transportation patterns. There are a multitude of different ways in which companies around the world are addressing this challenge, and we see long-term structural growth opportunities as a result. We particularly look for opportunities in the areas of electric vehicle technology, cycling, autonomous driving, safety technology, shared mobility and mass transportation, and energy efficient freight haulage. These solutions directly address the underlying targets of SDG11 – Sustainable Cities and Communities, as well as a number of other SDGs, ranging from SDG3 – Good Health and Well-being to SDG13 – Climate Action.