We have now mapped over 800 companies worldwide that have technologies and solutions that can help analyze and manage the risks increased by climate change. We think there are hundreds if not thousands more. Most of the companies in these sectors don’t call what they do “climate resilience,” but they have data and analytics, products and services that can help companies and individuals, and communities understand and have started to prepare for the risks and impacts being increased by climate change. We believe they will grow even faster to address the need and demand generated by climate change. Those market segments are already growing 20-30% per year. Jay: We have identified 20 sectors of the economy representing $130 billion of current market size related to resilience to climate change. Q: That’s an interesting thesis, but how big is the market for climate resilience right now? Isn’t this a future challenge or opportunity, as opposed to one presenting itself now? These outcomes are complementary – the faster these technologies and solutions grow, the more capacity we will have to deal with climate change.
Investing in climate resilience companies can generate two outcomes – extranormal growth for those companies and returns for investors, as well as measurable impact on the climate change problem itself.
These realizations lead to a simple investment strategy: Find the companies whose technologies and solutions can help build climate resilience tools and invest to help to scale their solutions to the problem as the problem gets bigger. You don’t have to develop technology in a lab or wait for a comprehensive global strategy to address the effects of climate change – you can find the technologies and solutions that assess these risks and impacts now and invest in scaling them up. These companies produce the “tools” to build resilience to climate change. Existing companies with technologies and solutions can help assess and address the growing risks and impacts increased by climate change. Third, there are ways to start investing against the effects of climate change now. Fewer than 5-6% of all investment tracked globally that has to do with climate change can be linked to adapting to or building resilience to climate change – and virtually none of that is in the private sector.
Second, somewhat surprisingly, very little is being done right now about the effects of climate change, particularly from an investment perspective. The UN estimates that up to $300 billion per year will be required to deal with the effects of climate change in developing countries alone by 2030. It is now clear that climate change will increasingly affect the global economy – everything from PG&E to the Panama Canal, which has imposed cargo limits on certain shippers because of drought increased by climate change. Jay: When we started looking at the effects of climate change in the context of investment, we realized three things: First, climate change is already causing increased risk and impact to society and the real economy. Q: How does climate resilience present an investment opportunity?
0 kommentar(er)
