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. in Environmental Engineering from Harvard University.Q: How does climate resilience present an investment opportunity? Kim holds an MBA in Finance from The Wharton School of the University of Pennsylvania and a B.S. She began her post-MBA career at a global consulting firm Booz Allen Hamilton in the Energy and Utilities Group advising enterprise clients on growth platforms and emerging technologies as well as mergers & acquisitions. Prior to this, Moon ran Nomura’s principal investments in greentech companies across Asia and worked at DFJ Element Ventures, a cleantech-focused venture capital firm then based in Silicon Valley. She has also served on the board of portfolio companies both privately-held & publicly-listed in the U.S., China, and India. Moon is currently focused on investment opportunities in growth companies addressing climate change mitigation & adaptation as a buyside advisor, including as a venture partner to regional and global funds, and has been involved in US$1+bn of transactions across Asia Pacific, North America, and Europe. Kim is an Advisor to The Lightsmith Group and a career sustainability specialist with decades of experience in the energy and environmental sectors ranging in roles from venture capital and growth equity investment to entrepreneurship, investment banking, strategic consulting, and engineering.
0 Comments
Leave a Reply. |