Long-Term Investment Approaches

🔥 Climate risks are no longer abstract—they’re disrupting businesses, communities, and economies right now. The World Economic Forum’s 2024 report, "The Cost of Inaction: A CEO Guide to Navigating Climate Risk", delivers a sobering message: ignoring climate risks isn’t just irresponsible—it’s economically devastating. 🌡️ Key insights from the report: 💥 Climate-related disasters have caused $3.6 trillion in damages since 2000, exposing critical vulnerabilities in supply chains and infrastructure. 📉 Physical risks could put 5-25% of EBITDA at risk for some sectors by 2050 under a 3°C warming trajectory. 💸 Transition risks, like carbon pricing and changing regulations, could impact 50% of EBITDA in energy-intensive industries by 2030. 🌱 Every $1 invested in climate adaptation yields $2-$19 in avoided costs, while green markets are projected to grow from $5 trillion in 2024 to $14 trillion by 2030. 💡 My reflections: 🔄 Resilience isn’t enough anymore. Too often, we focus on simply "weathering the storm" of climate risk. But true leadership is about rebuilding something better—rethinking markets, redesigning business models, and creating solutions that lead entire industries forward. 🌍 Supply chain fragility is the Achilles’ heel of the global economy. A single extreme weather event can cascade across operations, grinding everything to a halt. Climate-resilient supply chains can’t just be about survival—they must be radically adaptive, decentralized, and built to thrive under disruption. 📊 Climate risk is fundamentally redefining the concept of value. Businesses stuck chasing quarterly earnings are missing the bigger picture. In a world of rising costs and irreversible climate impacts, long-term value will belong to those who embed sustainability, resilience, and equity into their strategies. The time for cautious, incremental steps has passed. How are we using this moment to transform the way we work, innovate, and lead? #ClimateAction #Sustainability #Resilience #Leadership #Innovation

Is this the beginning of the end for traditional insurance models? To me, the following post published on LinkedIn recently is very insightful for three reasons. 1/ First, the post highlights that insurers *need* to explore additional distribution channels, on top of what already exists - brick & mortar shops, agents or brokers. And it lists online channels as a priority. This is the first time I read it so clearly from an incumbent. And it obviously makes sense to me as customers are increasingly relying on digital services, spending more time on their smartphone and eCommerce is surging. In that background, there is no specific reason insurance could be the only industry Worldwide to remain solely offline ! 2/ Then the post highlights the opportunity to rely on startups to deliver such a roadmap. In that specific case, the corporate relied on two complementary initiatives: acquisitions and minority investments. Whatever the means, this proves there is value in InsurTech startups. After years of startups raising crazy amounts claiming they would replace incumbents, followed by several years of hearing incumbents claiming "InsurTech doesn't work" it seems we've landed in a more balanced position where it's a matter a price, not a question of value added ! Yes, InsurTech startups, when done right, could benefit the insurance value chain ! 3/ Last but not least, this post - supporting the case for digitizing part of the insurance industry and the opportunity for historical players to leverage external solutions (i.e. startups) - was written by... an incumbent ! This is not a startup pitching its vision nor a VC building its investment thesis. This is one of the major players in its market: the health insurance space in France. Reading such a strong push for embracing digital solutions and paving the road to buying / partnering with InsurTech startups makes a lot of sense to me, as we've been investing in tech startups revamping the insurance industry for years. And beyond, this seems to me as a wake-up moment for the industry and I expect more to come in the near future as the InsurTech market matures and clear winners, or top players are emerging from the crowd. #insurance #insurtech #venturecapital

Business Risks from Climate Change 🌎 Businesses today face increasing exposure to climate-related risks that can disrupt operations, damage assets, and impact long-term viability. These risks are no longer hypothetical—they are material, measurable, and growing in relevance across all sectors. According to the TCFD, climate risks fall into two main categories: physical risks and transition risks. Physical risks include both acute events, such as storms and floods, and chronic impacts like water scarcity or rising temperatures. Transition risks emerge from the shift to a low-carbon economy and include regulatory changes, shifts in market demand, and pressure to invest in new technologies. Extreme weather events, supply chain interruptions, and damage to infrastructure are some of the key physical risks. These can lead to increased operational costs, reduced productivity, and disruptions in raw material availability. Transition risks are equally important. Carbon pricing, energy cost volatility, and investor scrutiny are reshaping business models. Companies that delay adaptation may face stranded assets, higher insurance costs, and reduced access to capital. Addressing these risks requires more than isolated sustainability initiatives. It demands integration into core business strategy, risk management, and investment planning. Short-term actions can have long-term implications. Clear priorities include assessing exposure, upgrading infrastructure for resilience, and embedding climate risk into existing governance and risk processes. These actions support both operational continuity and regulatory preparedness. Developing low-carbon strategies and enhancing disclosure practices aligned with standards like the TCFD are also essential steps. Transparent reporting builds trust with investors, regulators, and other stakeholders. Climate risk is business risk. Managing it effectively is no longer optional—it is fundamental to long-term value creation and competitiveness. #sustainability #sustainable #business #esg #climatechange #risks

What happens when African fund managers lead the investment strategy? In a recent CNBC Africa interview, DOROTHY NYAMBI, CEO of MEDA (Mennonite Economic Development Associates) shared powerful insights into how the Mastercard Foundation Africa Growth Fund is reimagining what it means to put African capital in African hands. The Fund demonstrates that capital can be reimagined and redirected to serve African fund managers, entrepreneurs, and especially women, using a gender-lens and locally led investment model that: 1. Rethinks gender-lens investing • It’s not about ticking diversity boxes- it’s about empowering women with real agency to influence investment decisions and strategy. • The Fund emphasizes patience and local context, shaping investment approaches to suit real-world African realities rather than imposing external templates. 2. Builds local ecosystems • Local leadership matters. The Fund invests in and supports African and female-led managers, ensuring they are not just invited to the table- but leading it. • It enables fund managers to spearhead strategy and draw in other stakeholders, strengthening the investment ecosystem from within. 3. Focuses on returns “on inclusion” • The Fund measures more than financial returns. It prioritizes social impact, like job creation and economic empowerment. • The goal: dignified, sustainable employment, particularly for African youth, moving beyond short-term fixes. 4. Is intentional about youth and women inclusion • The Fund challenges outdated narratives that investing in women is riskier, instead proving the financial viability of women-led enterprises. • It applies a holistic, end-to-end gender lens, supporting women as entrepreneurs, fund managers, and drivers of growth across the value chain. Impact so far: • ~US$150 million deployed across 18 African-led investment vehicles • 49 SMEs supported in 12 countries • 2,500 full-time jobs created, with 1,100 held by women • 75% of supported vehicles are female-led • Honored with the DEI Award at AVCA’s 20th Anniversary Conference In essence, African-led, gender-smart capital flows are delivering equity and economic resilience. Fund managers and entrepreneurs are shaping outcomes with a clear focus on inclusion, impact, and sustainability. This is a transformative model where African and female-led fund managers are no longer just recipients of capital, but drivers of it, reshaping the investment landscape to deliver both financial returns and lasting, meaningful change across the continent. Watch the full interview: https://lnkd.in/d9SuiuSj #Africa #GenderLensInvesting #InclusiveCapital #ImpactInvesting #Leadership #YouthEmployment

🍃 Are climate risks financial risks? Absolutely! New research from Verisk Maplecroft shows that over 1 trillion is at risk even in a moderate warming scenario. In the higher warming world we are heading for, risks could be way higher. The study used the Climate Hazard and Vulnerability Index (CHVI) to show that policymakers and corporate leaders are missing key risks. -48 countries will be highly vulnerable to socio-economic climate impacts by mid-century, double today’s figure. -Major emerging markets are expected to face significant climate-related disruptions. ❓ What's to be done? Companies need dedicated climate leadership at the highest level to proactively identify risks, anticipate market disruptions, and strategically invest in long-term resilience. Firms need to move beyond physical hazards to systematically report and manage socio-economic climate vulnerabilities. Transparent, detailed disclosures help stakeholders understand risks and encourage informed investments. Corporations must prioritize investment in resilient infrastructure, diversified supply chains, and sustainable practices, particularly in vulnerable regions. This strategic foresight protects operational continuity and market valuation. The globalized nature of our modern economy means that climate vulnerability anywhere becomes a financial risk everywhere. 💬 Full report in the comments, where you can share your thoughts too! #ClimateRisk #Investors #Resilience #ClimateAction #PhysicalRisk #Finance #Risk #ClimateChange #Sustainability #ESG

Investing in a Changing Climate: Climate change presents two major financial risks for #investors, transition and physical risks; together, these risks accelerate the devaluation of #assets, potentially rendering them stranded long before the end of their expected lifecycles. 🔹 Transition risks—driven by rapid policy shifts, evolving market behaviors, and technological innovations—impact industries beyond fossil fuels, including real estate, automotive, agriculture, and heavy industry. 🔹 Physical risks—such as extreme weather, rising sea levels, and prolonged heat stress—can disrupt supply chains, reduce worker productivity, and devalue assets. A delayed transition brings hidden risks—while some sectors (utilities, basic resources) may see short-term relief, they face sharper, more destabilizing corrections when policy action eventually accelerates. Using NGFS climate transition scenarios (Baseline, Net Zero 2050, and Delayed Transition) alongside Discounted Cash Flow (DCF) and Interest Coverage Ratio (ICR) valuation methods, we identify sector-specific vulnerabilities across the US and Europe. 📉 Sectors at risk under a Net Zero 2050 scenario: 🔹 Real estate (-40% in Europe) due to energy efficiency mandates and rising costs. 🔹 Telecommunications (-26.3%) and consumer staples (-24.8%) facing stricter carbon regulations. 🔹 Energy (declines of -6% to -7%) as fossil fuel operations become costlier. 🔹 Basic resources (-11.9%) and technology (-11.7%) showing relative resilience but still facing policy-driven adjustments. 📈 Sectors showing resilience across scenarios: 🔺Technology & Healthcare remain stable due to innovation and lower emissions intensity. 🔺Consumer discretionary in the US (-16%) sees moderate declines but adapts through renewables and supply chain shifts. A well-orchestrated transition is critical to minimizing financial shocks. Scenario-based risk assessments allow investors to safeguard portfolios, mitigate stranded asset risks, and capitalize on opportunities in the green economy. #ClimateRisk #NetZero #SustainableFinance #ESG #Investing #ClimateTransition #RiskManagement #AllianzTrade #Allianz

𝐆𝐞𝐧𝐝𝐞𝐫 𝐄𝐪𝐮𝐚𝐥𝐢𝐭𝐲 𝐂𝐚𝐧𝐧𝐨𝐭 𝐇𝐮𝐫𝐭 𝐘𝐨𝐮—𝐈𝐭 𝐖𝐢𝐥𝐥 𝐎𝐧𝐥𝐲 𝐁𝐞𝐧𝐞𝐟𝐢𝐭 𝐔𝐬 𝐀𝐥𝐥. The upcoming Financing for Development (FfD4) negotiations reveal an alarming truth: gender equality is being watered down, used as a bargaining chip, or erased altogether. Let’s be clear—gender equality is not a threat. It does not take away from economies, institutions, or power structures. It strengthens them. The data is undeniable: economies grow when women are included. Financial systems become more resilient when they work for the 99%. Communities thrive when women have access to capital, markets, and opportunities. So why are we still debating whether gender belongs at the heart of development finance? And why are so many people still so threatened by it? At IIX, we’ve spent 16 years proving that gender lens investing isn’t charity—it’s smart economics. It’s what fuels inclusive markets, drives financial returns, and delivers lasting impact. Yet, despite all the evidence, we are still watching the same old playbook—where gender equality is the first to go when the negotiations get tough. The world cannot afford to let this happen. We will not let this happen. Not now, when climate change, inequality, and financial instability are at a breaking point. We need governments, investors, and development institutions to stop treating gender equality as an afterthought and start recognizing it as a necessity. #OrangMovement #OrangeforGenderEquality #genderequality #development #DEI #ESG https://lnkd.in/gHaASN4U

🏠🌪 As climate disasters intensify, the hidden fault lines in our financial system are starting to crack—especially in the mortgage and insurance sectors. For decades, mortgage lenders have relied on homeowners insurance as a shield against loan losses. But today, that shield is weakening. Skyrocketing premiums, insurer withdrawals, and flood insurance gaps are leaving millions of households—and their mortgages—vulnerable. 📉 A new national analysis from First Street shows that #climaterisk has become the 6th “C” of credit, joining character, capacity, capital, collateral, and conditions. Why? Because physical climate risk is now driving mortgage defaults—especially from floods—and conventional credit models are failing to capture these losses. 💰 In fact, climate-driven credit losses could cost U.S. banks: $1.2 billion by 2025, and $5.4 billion by 2035, even without accounting for indirect economic shocks like housing downturns. 🌊 Floods are the leading peril, particularly damaging in areas outside FEMA flood zones, where insurance isn’t mandatory. Following disasters like Hurricane Sandy, banks faced tens of millions in hidden losses—unforeseen and unmodeled. 📉 Rising insurance premiums are also forcing borrowers to absorb more risk. For every 1% increase in insurance costs, the foreclosure rate ticks up by over 1%. At the same time, household savings have shrunk to just 4.6% of disposable income. 👉 The message is clear: climate risk is credit risk. If lenders don’t integrate high-resolution climate data into their risk models, they risk being blindsided by the next disaster—not just physically, but financially. Read the report here 👇 https://lnkd.in/edmCrQY8

Insurtechs are not playing the same game traditional insurers are. They are changing the rules of insurance. Insurtech startups are outpacing traditional insurance giants by making insurance accessible to millions who never thought they could afford it. These startups are innovating in ways that are both clever and transformative. Here’s how 3 Kenyan insurtechs are outsmarting traditional insurers: 1. Turaco Turaco is challenging traditional insurance expectations with microinsurance designed for low-income households, starting at just KES100 per month. This pricing strategy aligns perfectly with Kenya’s push for financial inclusion. Families who once couldn’t afford insurance now can safeguard their futures. Turaco integrates with telecom APIs enabling instant policy activation and very quick claims processing. This eliminates the long delays that frustrate customers with traditional insurers. 2. mTek Services Founded in 2019, mTek is on a mission to make insurance paperless and painless. The startup has eliminated paperwork entirely. They have created a smooth experience for users to purchase coverage and file claims directly from their phones. This transition to paperless processes not only increases accessibility but also cuts costs. Their $1.25M funding round in 2024 shows investor confidence in their ability to scale. They plan to expand operations across East Africa. 3. Lami Lami is democratizing insurance through collaboration. They partner with Kwara to provide insurance products directly to members of SACCOs. They also partner with Sendy to provide transit insurance to freight carriers in East Africa. Lami's platform has tools that enables users to compare insurance options transparently, building trust in a sector where skepticism is common. These startups are transforming lives. They are agile and laser-focused on customer needs. When a mother can insure her small shop for the price of a cup of tea, or a farmer can protect his crop with a few taps on his phone, that's real innovation. PS - Follow me Ben David for more finance industry insights.

The climate is changing faster than many business models are built to handle. But for those looking ahead, climate adaptation is emerging not just as a necessity — but as one of the most significant financial opportunities of the coming decades. According to a new report by GIC, Singapore’s sovereign wealth fund, and Bain & Company, climate adaptation solutions could generate $4 trillion in annual revenue by 2050 — with $2 trillion of that growth driven directly by global warming. The market value of companies offering adaptation products and services is expected to climb from $2 trillion today to $9 trillion, representing a major investment opportunity across industries. What exactly does adaptation mean for business? Unlike mitigation, which targets the reduction of emissions, adaptation focuses on protecting systems, infrastructure and people from the physical impacts of climate change. This includes flood protection, wildfire response, drought-resilient agriculture, backup energy systems, heat-resistant building materials and precision weather forecasting. The investment case for adaptation is resilient across all climate pathways, with less than 4% variation in market value projections even under different warming scenarios. This makes adaptation a strategically sound long-term investment — relatively insulated from the political and regulatory uncertainties that can impact mitigation-focused ventures. Critically, the report finds that current market forecasts may significantly undervalue the future revenue potential of adaptation, suggesting that investors could benefit from upside surprises as awareness and demand accelerate. Growth will come from both emerging technologies and scaled deployment of proven solutions. For businesses, this means both innovation and implementation will drive returns — whether through the development of next-generation cooling systems or the mass rollout of flood defences in vulnerable regions. With the world likely to overshoot the 1.5°C target, adaptation is no longer optional. It is becoming integral to business continuity, supply chain resilience and long-term value creation. Yet adaptation finance still lags, attracting only a fraction of the capital required to meet projected needs. For companies and investors willing to act now, this gap represents both a responsibility and an opportunity — to lead in building resilience while capturing a share of one of the defining growth markets of the 21st century. Have a read through the report: https://lnkd.in/duuvbeTC #gic #singapore #climateadaptation #climate #decarbonisation #revenue #growth #business