The Age of Adaptation
The S2G Summit is our annual gathering of industry executives, innovators, investors, policymakers, and influencers who come together with a shared ambition to scale the transition of food and agriculture, oceans, and energy markets.
This year, our theme was the Age of Adaptation.
Since last year’s S2G Summit, the global landscape has dramatically shifted across several dimensions. The US reasserted itself as a global disruptor, artificial intelligence experienced a transformative leap in adoption and capability, and both bond and equity markets fled from risk, creating historically inverted portfolios. At the same time, 2024 was the hottest year on record, placing us on an accelerated trajectory toward 2.5 – 3.0°C of warming. These developments mark a decisive break from the post-Cold War era of stability, requiring business leaders and investors to confront an entirely new risk paradigm.
As we outlined a few years ago, we believe we have entered a new period that will be defined by volatility — a system shift shaped by geopolitical instability, inflation shocks, supply chain fragmentation, and climate extremes. Where the era of moderation from the 1980s to 2019 was characterized by stable macroeconomic conditions, low inflation, and predictable asset correlations, today’s reality is far more volatile. Traditional portfolio strategies, like the 60⁄40 split, have failed under the pressure of simultaneous stock-bond drawdowns and rising rate volatility. In this new era, stability is no longer a given; it’s conditional, fragile, and often illusory.
In this environment, generating Alpha — defined not just as outperformance but as strategic adaptation — requires a fundamental rethinking. Investors must now embrace non-linear change and develop “adaptive portfolios” that respond to systemic disruptions. The passive pursuit of Beta, shaped by yesterday’s market rules, is no longer sufficient. Instead, the winners of tomorrow will be those who recognize and capitalize on dislocations driven by new structural forces.
Looking ahead, we believe four interlinked variables will shift how we think about risk and drive new opportunity:
- Artificial Intelligence is shifting productivity curves, redefining how value is created and delivered across every sector.
- Geopolitics is realigning global trade and industrial policy, fragmenting long-standing supply chains and rewriting the rules of engagement.
- The Monetary Régime is under strain, with sovereign debt loads growing and faith in fiat currency systems being tested.
- Climate Adaptation is forcing investors and companies to reckon with the rising costs and opportunities of a warming planet.
These forces do not operate in isolation — they compound, amplify, and challenge every investment assumption.
This is the moment to adapt. Those who cling to the old playbook will find themselves overexposed to obsolete assumptions. We believe those who embrace new realities, who see around the corner and act boldly, will define the next era of progress and value creation.
Welcome to the Age of Adaptation.
