Investment Rating - The report indicates that sustainable fuels present a significant investment opportunity for private capital, with institutional and infrastructure investors having approximately $50 billion available for fresh investment annually [4]. Core Insights - The transport sector is responsible for 14% of global greenhouse gas emissions, with sustainable, low-carbon fuels being essential for decarbonizing long-haul flights and shipping [3][5]. - By 2050, the aviation sector will need to decarbonize 11,600 million tons of fossil jet kerosene, while maritime will require 9,500 million tons of fossil fuel replacement [3]. - A significant supply-demand imbalance for sustainable fuels is projected by 2030, with a gap of over 15,000 kilotons anticipated, which could hinder decarbonization efforts [5][6]. Summary by Sections The Need for Sustainable Fuels - The transport sector faces increasing regulatory, financial, and consumer pressures to decarbonize, particularly in maritime and air transport, which are hard to electrify [7][9]. - Emissions from these sectors are expected to reach approximately 1.8 billion metric tons of CO2 equivalent by 2030 if no action is taken [8]. Challenges to Funding - The report identifies several key challenges to funding sustainable fuel projects, including technology readiness, economic risks, execution risks, regulatory uncertainty, and the need for education on investment opportunities [11][12][22][26]. - High CAPEX projects like sustainable aviation fuel (SAF) face difficulties due to inflationary pressures and high interest rates, complicating investment [12]. Government and Private Sector Actions - Governments are encouraged to introduce clear blending mandates and CO2 taxes to support sustainable fuel adoption [29][30]. - Private sector stakeholders, including producers and investors, should diversify their investment strategies and secure long-term contracts to mitigate risks [33][36]. Market Potential - Sustainable fuels are seen as an attractive investment class, with decreasing market and technology risks and comparable economic returns to other infrastructure investments [36]. - Coordinated efforts among stakeholders in the sustainable fuel ecosystem are essential to unlock financing and demonstrate market potential [37].

Investment Rating - The report does not explicitly state an investment rating for the steel industry but emphasizes the growing importance of scrap steel as a critical resource in the transition to greener steel production methods. Core Insights - The steel industry is under pressure to decarbonize, with a focus on reducing CO2 emissions by transitioning from traditional blast furnaces to Direct Reduced Iron (DRI) and Electric Arc Furnaces (EAF) [2][6][9] - The demand for steel is projected to rise, making the decarbonization of steel production essential for achieving sustainability goals [2][5] - The scarcity of clean scrap steel is expected to drive prices higher, highlighting the need for steelmakers to secure sufficient scrap supplies [3][24] Summary by Sections Industry Overview - Steel production accounts for approximately 7% of global CO2 emissions, necessitating urgent action to reduce its carbon footprint [4][6] - The European Union aims to cut CO2 emissions from steel production by nearly 25% by 2030, reflecting regulatory pressures on the industry [2][6] Technological Transition - The shift from blast furnaces to DRI and EAF technologies is crucial for reducing emissions, but it requires significant investments and a reliable supply of competitively priced green energy and scrap steel [3][10][12] - EAF technology is mature, while DRI technology is still developing, with no large-scale hydrogen-powered DRI facilities yet operational [14][15] Scrap Steel Market Dynamics - The report highlights the increasing global competition for scrap steel, particularly clean scrap, as demand grows due to the transition to EAFs [5][24] - In Europe, an estimated annual shortage of 9 million tons of scrap is projected by 2030, which will likely increase prices and competition for supplies [24][25] Investment and Economic Considerations - Meeting the EU's 2030 targets requires an estimated €85 billion in investments, with significant reliance on state subsidies to fund new green steel projects [15][16] - The cost of processing scrap steel is competitive compared to DRI processes, making it an economically viable option for steel production [22][24] Strategic Recommendations - Steel producers are encouraged to build ecosystems and circular economies to secure scrap supplies through partnerships and acquisitions [34][35] - Companies should explore global sourcing for cost-effective scrap, particularly from regions like Africa and Latin America, to meet growing demand [34][35]

Investment Rating - The report does not explicitly provide an investment rating for the automotive mobility industry. Core Insights - The automotive industry is experiencing a shift away from the idealized CASE (Connected, Autonomous, Shared, Electric) future, with a more realistic outlook focusing on connected, assisted, and private mobility rather than fully autonomous and shared models [4][5][8]. - The report highlights significant divergence in automotive trends between mature markets (US, Europe, North Asia) and dynamic, price-sensitive markets in the rest of Asia and the Middle East [4][5]. Mobility Profile & Car Ownership - Global car ownership is increasing, contrary to earlier predictions of decline, driven by economic growth in developing markets and the necessity of car ownership in areas with limited public transport [12][18]. - Younger demographics expect car ownership to remain important, while older individuals in mature markets anticipate a shift towards reduced car ownership as they age [19][20]. New Mobility Services - There is no significant trend away from personal car ownership; many respondents still view it as essential, particularly in regions lacking robust public transport [25][26]. - Flexibility and cost are the primary drivers for adopting new mobility services, with a notable percentage of respondents indicating they would not give up their cars under any circumstances [35][36]. Autonomous Driving - Trust in autonomous driving technology has not significantly increased over the past five years, with safety concerns remaining a major barrier to acceptance [38][42]. - The level of acceptance varies by income and location, with urban high-income respondents showing more positive attitudes towards autonomous vehicles compared to those in Europe and the US [41][42]. Alternative Drivetrains & Charging Infrastructure - The number of new registrations for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) reached 14 million in 2023, indicating robust growth in electric vehicle markets [49][50]. - Despite the growth, challenges such as higher upfront costs and concerns about battery life and charging infrastructure continue to hinder broader adoption of electric vehicles [61][63].

2024 T H E F U T U R E O F MOBILITY 5.0 | --- | |----------------------| | | | Changing gear in | | the journey toward | | sustainable mobility | ARTHUR LITTLE | --- | --- | --- | |----------------------------------------------------------------------|--------------------------------------|---------| | | | | | CONTENT | | | | FOREWORD | | 4 | | EXECUTIVE SUMMARY | | 6 | | 1. E X A M I N AT I O N O F C U R R E N T STATE OF MOBILITY SYSTEMS | | 1 0 | | | | | | 2 . | DEEP DIVES ON MOBILITY SOLUTIONS 1 8 | | | ...

VIEWPOINT 2024 S C A L I N G I N N OVAT I O N S U C C E S S V I A B R E A K T H R O U G H INNOVATION FACTORY AUTHORS Meeting the growing need to industrialize breakthrough innovation delivery Arnaud Siraudin Sandro Bacan Growing global mega challenges and rising competition mean that generating a steady stream of breakthrough innovations is central to organizational success. However, traditional corporate structures and capabilities are geared toward supporting incremental innovation programs, which require ...

VIEWPOINT 2024 R E S H A P I N G T E L E C O M I N V E S T M E N T I N A N E X T- G E N E R AT I O N WORLD Adopting a new blueprint to focus CAPEX/OPEX & drive profitability Telco operators are facing declining profitability from a combination of stagnant or negative revenue growth resulting from competition and increasing CAPEX/OPEX caused by increasing user traffic. While operators have always run efficiency programs, traditional methods are no longer sufficient to meet current financial constraints and f ...

Investment Rating - The report emphasizes the necessity for businesses to adapt to climate change as part of their future strategies, indicating a strong investment focus on adaptation technologies and solutions [10][30]. Core Insights - The report highlights that regardless of mitigation efforts, the world is likely to experience a +3°C increase in temperature by 2100, which will have significant impacts on various sectors [20][32]. - Businesses face four major challenges in adapting to climate change: sourcing critical materials, maintaining manufacturing productivity, protecting assets, and selling new products and services [20][48]. Summary by Sections 1. Considering an Adaptation Approach - Businesses must integrate adaptation into their strategies alongside mitigation efforts, recognizing that climate change impacts are already occurring [10][30]. - Adaptation is part of a broader sustainability agenda, which includes improving resource-use efficiency and resilience [10][35]. 2. The Challenges Ahead - The report identifies four generic business challenges related to adaptation: sourcing, manufacturing, protecting assets, and selling [48]. - Each challenge includes specific sub-challenges, such as water scarcity, declining crop production, and disrupted supply routes [50][51]. 3. Modeling Uncertain Outcomes - The report discusses the importance of understanding various geophysical and biological impacts of climate change, including extreme weather events and biodiversity loss [34][32]. - It outlines five plausible future projections based on critical human shaping factors, such as regulations and consumer behavior shifts [14][21]. 4. Responding with Technology - A total of 89 relevant technology families are identified, mapped across the four challenges, and ranked by maturity and impact [14][40]. - The report emphasizes that adaptation technologies are diverse and often localized, requiring tailored solutions [36][40]. 5. Taking Action - Companies are encouraged to focus on understanding climate risks, establishing governance, mobilizing funding, and developing local partnerships to enhance adaptation efforts [16][20]. - The report outlines key questions for businesses to consider in their adaptation strategies, including how to predict risks and how to finance adaptation initiatives [16][20].

Investment Rating - The report emphasizes the urgent need for manufacturing firms to reassess their supply chain strategies, focusing on resilience, adaptability, and responsibility rather than solely on cost efficiency [2][3][24] Core Insights - The current global supply chain model is under reevaluation due to challenges such as material shortages, rising energy costs, and geopolitical tensions, necessitating a shift towards more resilient and responsible manufacturing practices [3][4][24] - Consumer demand for transparency and ethical practices is driving companies to prioritize domestic production and sustainable practices, particularly among younger consumers [15][16][24] Summary by Sections Strategic Manufacturing Reassessment - Manufacturing firms must reassess their geographic footprint to enhance resilience and adaptability in a complex global market [3][4] - The report identifies three urgent reasons for reassessing manufacturing footprints: understanding the actual cost of globalized networks, ensuring supply chain resilience, and adapting to customer sentiment [5][11] Economic and Regulatory Landscape - The US Inflation Reduction Act and Infrastructure Investment and Jobs Act are catalyzing domestic manufacturing, particularly in clean energy and electric vehicle sectors, with investments reaching US $210 billion by early 2023 [5][7] - China's new export license policy for graphite and the EU's Carbon Border Adjustment Mechanism are influencing global supply chains and prompting companies to seek alternative production sources [7][8] Cost Analysis and Labor Trends - Reevaluating the total cost of ownership for global supply chains includes indirect costs and complexities, with disruptions during the pandemic costing 6%-10% of annual revenues [8][9] - Rising wages in developing countries and opportunities for automation are diminishing the advantages of outsourcing, prompting a shift towards nearshoring [9][10] Resilience and Risk Mitigation - The COVID-19 pandemic and other disruptions have highlighted the fragility of global supply chains, leading 60% of executives to prioritize resilience over speed [11][13] - Companies like Intel and Novo Nordisk are investing significantly in domestic manufacturing to enhance operational resilience [12][14] Consumer Sentiment and Ethical Practices - A significant portion of consumers, particularly Gen Z, prefer brands that align with their ethical values, driving a shift towards domestically produced goods [15][16] - The "Made in America Report" indicates that 65% of US consumers prefer domestic products, with 48% willing to pay more for them [16][20] Steps for Reviewing Manufacturing Footprint - The report outlines a four-step process for reviewing manufacturing footprints: mapping the current state, defining future ambitions, planning for gradual improvement, and developing a business case and roadmap [18][19][21]

2024 L O C A L I Z I N G T H E G L O B A L S E M I C O N D U C T O R VA L U E C H A I N Strategizing for growth while building resilience in the rapidly evolving industry C O N T E N T EXECUTIVE SUMMARY 3 1. EMPOWERING ICT: THE CRUCIAL ROLE OF SEMICONDUCTORS 4 2. DECODING TODAY’S SEMICONDUCTOR VALUE CHAIN 6 3. TURBULENCE IN SEMICONDUCTOR INDUSTRY: RECENT EVENTS 10 ...

VIEWPOINT ARTHUR LITTI 2024 FIBER 1 + 1 = 3: AN EQUATION FOR EFFECTIVE POST- MERGER INTEGRATION AUTHORS Realizing the true potential of fiber transactions in Europe & beyond Lars Riegel Gabriel Mohr Dr. Nejc Jakopin Nikolay Grozdanov Peter Freundel Tamas Lakos With tightening market conditions and ambitious competitive plans, the fiber to the home (FTTH) market seems poised for consolidation. In this Viewpoint, we argue that consolidation presents value creation potential for both players and investors — by ...