Strategies For Sustainable Investing

Investment Opportunities in Climate Adaptation and Resilience 🌎 Climate change is intensifying physical risks across regions and sectors, placing climate adaptation and resilience (A&R) at the center of global strategic priorities. While mitigation addresses emissions, A&R solutions tackle the immediate and long-term risks to infrastructure, economies, and communities. Investment in Climate A&R remains at an early stage despite its scale and urgency. The BCG and Temasek report projects global A&R financing needs of $0.5 trillion to $1.3 trillion per year by 2030. This presents a significant opportunity for private capital to drive both financial returns and systemic resilience. The Climate Adaptation & Resilience Investment Opportunities Map provides a framework to assess where capital can be most effectively deployed. It structures opportunities into seven impact themes and offers a granular view of subsectors and solutions across industries. Investors will find diverse entry points—from early-stage ventures focusing on pure-play A&R innovations to established industrial players integrating resilience solutions into broader portfolios. This dual landscape enables a mix of venture, growth, and buyout strategies tailored to different risk appetites. Adaptation markets are inherently localized. Flood defense strategies, water efficiency technologies, and agricultural resilience solutions vary by geography, creating fragmented but scalable market opportunities that respond to specific climate risks and regulatory frameworks. The report highlights the importance of co-benefits. Nature-based solutions, for example, deliver protective functions while enhancing biodiversity and ecological health. At the same time, material-intensive interventions require careful scrutiny to balance resilience gains with environmental impacts. To capitalize on these trends, investors will need to navigate sectors where regulation, insurance incentives, and risk disclosure frameworks are evolving rapidly. Competitive advantages will accrue to those with deep technical expertise and the ability to scale proven solutions across markets. The Climate Adaptation & Resilience Investment Map identifies seven key impact themes: - Food Resilience - Infrastructure Resilience - Health Resilience - Business and Community Resilience - Water Resilience - Energy Resilience - Biodiversity Resilience Climate adaptation is shaping a new investment frontier, where value creation is tied directly to long-term societal and economic stability. #sustainability #sustainable #business #esg #climatechange

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

Today, the countries with the greatest growth potential and most urgent need for investment face the greatest financing gaps and the highest costs of capital. Emerging and developing economies (#EMDEs) face borrowing costs 3–5x higher than advanced economies—even when they have faster growth, lower debt, and strong fundamentals. This high #CostOfCapital — not capital scarcity—is the biggest bottleneck for climate and SDG finance in EMDEs. 📄 Our new CCSI paper, co-authored with Jeffrey Sachs, Ana Maria Camelo Vega, and Bradford M. Willis unpacks the structural forces inflating EMDE financing costs—from flawed #creditratings, outdated prudential regulations, short-term debt, underused guarantees, and misperceptions of risk. The paper lays out 10 actionable pathways to mobilize long-term, affordable capital for climate and development—at speed and scale. 📌 Key Takeaways: - High cost of capital makes capital-intensive clean energy unaffordable where it’s most needed; fossil fuels remain cheaper in many EMDEs because of the high cost of capital despite abundant renewable energy potential. - GDP per capita—not solvency indicators—is the strongest predictor of sovereign credit ratings. Low-income countries are penalized for their poverty, regardless of investment quality or growth potential. Not a single low-income country is deemed credit-worthy by S&P, Moody's or Fitch. - It’s not just a development problem—it’s a missed investment opportunity. The distorted risk-return landscape also holds back large institutional investors who want to deploy capital into the high growth EMDEs—but are blocked by structural risk ratings, regulatory requirements, capital adequacy rules, and lack of de-risking mechanisms. - Today’s dominant credit and debt sustainability frameworks focus on short-term liquidity risks, not long-term structural growth potential. This leads to pro-cyclical investment patterns that funnel capital to already-rich countries and perpetuate underinvestment in high-potential regions. This is a solvable problem! And the solutions are timely and urgent—especially as leaders gather for the #IMF–WorldBank #SpringMeetings next week, the UN #FFD4 Summit in June, and #COP30 this fall. 📘 Read the full paper: https://lnkd.in/eJYAh6WN. We welcome your feedback and engagement. Columbia Climate School Mahmoud Mohieldin Vera Songwe Daniel Cash Ivan Oliveira Tom Beloe Ben Weisman Leslie Labruto Kate Hampton Daniel Firger Lucy Kessler David McNair Rahul Rekhi KEVIN CHIKA URAMA Avinash Persaud Columbia Center on Sustainable Investment Manfred Schepers

"When ecosystems fail, economies falter." I say this daily. (Here's why we need to act now.) First, a mindset shift: We don't just have a climate crisis —  We have a Nature crisis—and it's a financial risk. Let's talk about Nature Transition Plans (NTPs)  (And why asset owners and investors must engage with them.) ➜ 1. Nature isn't a 'nice-to-have'—it's an economic necessity. Every industry depends on Nature:  🌾 Agriculture → Soil, pollination, water  💊 Pharmaceuticals → Biodiversity for drug development  🔋 Technology → Minerals, clean water for manufacturing But Nature is in decline—and when ecosystems collapse, so do supply chains, operational stability, and long-term asset values. The World Economic Forum estimates that half of global GDP is exposed to Nature loss. The reality? Our entire economy is underpinned by Nature. Investors, are you factoring this into your risk models? ➜ 2. The financial sector is waking up… slowly. Nature Transition Plans (NTPs) provide a framework to manage risks and invest in solutions. 🔹 Yet only 6% of companies globally disclose comprehensive data on their Nature dependencies.  🔹 Only 1% of European financial institutions have set water security targets—despite rising water crises. Regulation is shifting (hello, TNFD)  Investor expectations are rising. Markets will move—will you? ➜ 3. The financial industry has a choice: ❌ Keep investing in a declining system.  ✅ Build a Nature-positive portfolio that is resilient, future-proof, and aligned with sustainability goals. The transition is happening. The question is: Are you ahead of it? Want to see what's next? Read my full interview with PA Future's Holly Downes here:  🔗 Link https://lnkd.in/exp-9n72 Where do you see Nature risk impacting your portfolio resilience? #NatureFinance #Biodiversity #TNFD #SustainableInvesting #NatureTransitionPlans #ImpactInvesting #RebalanceEarth 

Bridging the Climate Finance Gap: A Roadmap to Net-Zero 🌍 💡 Did you know? Emerging markets face a massive climate finance gap, leaving critical sustainability goals at risk. CDP #carbondisclosureproject's latest analysis introduces a step-by-step framework to create effective Climate Finance Roadmaps. Here's what it entails: 1️⃣ Identify Financing Gaps: Understand where investments are most needed. 2️⃣ Assess Investment Risks: Provide clarity for stakeholders on sector-specific barriers. 3️⃣ Align Investments: Match public and private funding with granular sectoral and regional insights. 4️⃣ Optimize Capital Mix: Achieve balanced investments for long-term impact. By integrating data-driven analysis, these roadmaps enable investors and policymakers to work together, mobilizing resources for global sustainability. Why does it matter? 🔑 Investors can align portfolios with climate objectives while mitigating risks. 🔑 Policymakers get actionable insights for targeted interventions. 🔑 Together, we can address the climate finance gap and advance toward net-zero goals. 📌 What’s your take? How can this roadmap inspire action in your sector? Let's discuss in the comments. 👇 👉 Download the full report here and explore the future of climate finance. #Sustainability #ClimateFinance #NetZero #ImpactInvestment

Climate-related disasters may cause $12.5 TN in losses by 2050. How are investors preparing? This powerful new methodology from Institutional Investors Group on Climate Change (IIGCC) offers a way forward and includes a data tool as well. What to know: -The new Physical Climate Risk Appraisal Methodology (PCRAM 2.0) was designed for real-asset developers, managers, and capital providers. -It is applicable to both public and private sector assets and is geography agnostic. -The methodology combines insights from climate science, engineering, and finance to support a user to incorporate PCRs into asset appraisal. -PCRAM 2.0 is relevant to investment decision-makers, offering practical applications for both institutional investors and businesses to consider as they navigate uncertainty. Benefits for Investors: 1. Standardisation: Provides a consistent process for evaluating and managing investments in climate-resilient Real Estate and Infrastructure. 2. Risk and Opportunity: Focuses on resilience benefits like predictable cash flows, enhanced credit quality, and efficient long-term cost management. 3. Efficient Resource Management: Encourages a holistic approach to risk management, ensuring effective resource allocation for building resilient assets. 4. Building Investor Knowledge: Helps institutional investors navigate uncertainty Explore the methods, the data tracker, and share your thoughts here: https://lnkd.in/eKMdBSwj #climaterisk #climatefinance #investors #physicalrisk

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

I had a frank discussion with Maureen Ballatori, host of the Spilled Salt Podcast, about “Exploring Investment Strategies” in the AgTech, ClimateTech and FoodTech sectors. I recommend you listen, particularly if you’re building a company or investing in these sectors. I gave advice to companies, facing challenges due to long product development and customer adoption cycles as well as capital intensive business in a difficult fundraising climate, even before the economic uncertainty caused by the Trump Administration’s implements of tariffs, on how to respond in the short-term to ensure they can emerge successfully in the mid- to long-term when market dynamics are more positive. Key topics discussed include: ▪️ Lessons learned from experiences working with high-growth companies following bursting of previosu investment bubbles (internet, healthcare internet, solar, electric vehicles, energy storage) ▪️ Why investment strategies for AgTech, ClimateTech, and FoodTech startups need to shift in today’s cautious funding climate ▪️ Hurdles that are inhibiting adoption of sustainable technologies ▪️ How founders can build investor confidence through strategic clarity and realistic milestones ▪️ What needs to occur in the AgTech, ClimateTech, and FoodTech sectors for companies to achieve sustained progress and be positioned for long-term financial success ▪️ After a number of recent high-profile bankruptcies, how the vertical farming sector should move forward to build successful companies ▪️ What makes a successful regenerative agriculture investment and the role carbon credits play With all the uncertainty hanging over the AgTech, ClimateTech, and FoodTech sectors, companies need to do a holistic evaluation of their situation and adjust to develop business plans that are achievable and that offer economic viability in the near term. https://lnkd.in/ggW4mCur 🎧 Listen here: https://lnkd.in/gymMDUvF #AgTech; #ClimateTech; #FoodTech EcoTech Capital Cy Obert Agency 29 AgTech Alchemy

𝐍𝐁𝐈𝐌’𝐬 𝐄𝐒𝐆 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲: 𝐒𝐦𝐚𝐫𝐭 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠, 𝐍𝐨𝐭 𝐏𝐨𝐥𝐢𝐭𝐢𝐜𝐬 𝐚𝐧𝐝 𝐩𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐧𝐠 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐯𝐚𝐥𝐮𝐞. I’ve been following Norges Bank Investment Management (NBIM) closely, and their approach to #ESG is a masterclass in long-term, risk-based investing. Managing $1.7 trillion, they don’t see ESG as a "nice-to-have,” they see it as a financial necessity. 🔹 1. 𝑬𝑺𝑮 𝒂𝒔 𝑹𝒊𝒔𝒌 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 NBIM holds 1.5% of global equities, meaning their returns are directly tied to how well the world economy handles #climatechange, #biodiversity loss, and #social #inequality. If companies ignore these risks, their valuations—and NBIM’s investments—suffer. 🔹2. 𝑪𝒍𝒊𝒎𝒂𝒕𝒆 𝑨𝒄𝒕𝒊𝒐𝒏 𝑷𝒍𝒂𝒏 (2022-2025) Their strategy is crystal clear: ✅ Push for net-zero by 2050 ✅ Engage with the 170 biggest emitters (responsible for 70% of portfolio emissions) ✅ Advocate for stronger climate policies 🔹 3. 𝑬𝒏𝒈𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝑶𝒗𝒆𝒓 𝑫𝒊𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 NBIM doesn’t just walk away from high-emission industries. Instead, they push for real change, meeting with 3,000+ companies in 2023 alone. But they’re not afraid to cut ties—150 companies have been dropped due to unsustainable business models. 🔹 4. 𝑨𝒄𝒕𝒊𝒗𝒆 𝑶𝒘𝒏𝒆𝒓𝒔𝒉𝒊𝒑 & 𝑪𝒍𝒊𝒎𝒂𝒕𝒆 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 They’re using their influence to: 📌 Vote on climate resolutions 📌 Push for science-based targets 📌 Invest in renewables & low-carbon tech 💡 While some investors shy away from ESG, NBIM is doubling down—because this isn’t about ideology, it’s about financial resilience. ❓ 𝖶𝗁𝖺𝗍 𝖽𝗈 𝗒𝗈𝗎 𝗍𝗁𝗂𝗇𝗄 𝗌𝗁𝗈𝗎𝗅𝖽 𝗂𝗇𝗏𝖾𝗌𝗍𝗈𝗋𝗌 𝗉𝗋𝗂𝗈𝗋𝗂𝗍𝗂𝗓𝖾 𝖾𝗇𝗀𝖺𝗀𝖾𝗆𝖾𝗇𝗍 𝗈𝗋 𝖽𝗂𝗏𝖾𝗌𝗍𝗆𝖾𝗇𝗍 𝗐𝗁𝖾𝗇 𝗍𝖺𝖼𝗄𝗅𝗂𝗇𝗀 𝖤𝖲𝖦 𝗋𝗂𝗌𝗄𝗌? 𝖫𝖾𝗍’𝗌 𝖽𝗂𝗌𝖼𝗎𝗌𝗌. 👇

Your investments could be shaping more than just your portfolio. What if every dollar you deploy could create a ripple effect of positive change? The cost of overlooking impact is higher than you think. According to the Global Impact Investing Network (GIIN), over 3,907 organizations currently manage $1.571 trillion USD in impact investing assets under management (AUM) worldwide, representing a 21% compound annual growth rate (CAGR) since 2019. Yet, this still accounts for only about 1% of total global assets under management, indicating a vast potential for growth. By not integrating impact considerations, investors may miss out on opportunities for meaningful change and long-term value creation. 7 Strategies to Align Investments with Purpose: 1. Define Your Impact Objectives ↳ Identify core values: Determine the social or environmental issues that resonate most with your mission. ↳ Set clear goals: Establish specific, measurable outcomes you aim to achieve through your investments. 2. Conduct Thorough Due Diligence ↳ Assess impact potential: Evaluate how prospective investments contribute to your defined objectives. ↳ Analyze track records: Review the historical performance of organizations in delivering both financial returns and positive impact. 3. Diversify Across Asset Classes ↳ Explore various vehicles: Consider equities, bonds, and alternative investments that align with your impact goals. ↳ Balance risk and return: Diversification can help mitigate risks while enhancing potential for impact. 4. Engage with Investee Companies ↳ Active ownership: Use your shareholder influence to advocate for sustainable practices. ↳ Collaborate on initiatives: Work with companies to develop strategies that enhance their social and environmental contributions. 5. Measure and Report Impact ↳ Utilize standard metrics: Adopt frameworks like IRIS+ to track and compare impact performance. ↳ Transparent reporting: Regularly disclose impact outcomes to stakeholders to build trust and accountability. 6. Stay Informed and Adaptable ↳ Monitor industry trends: Keep abreast of developments in impact investing to identify new opportunities. ↳ Be flexible: Adjust your strategies as needed to respond to changing social and environmental landscapes. 7. Collaborate with Like-Minded Investors ↳ Join networks: Participate in groups like the GIIN to share knowledge and resources. ↳ Co-invest: Partner with others to amplify impact and share due diligence efforts. Every investment is an opportunity to shape a better future. What’s one step you can take today to align your portfolio with your purpose? ♻️ Share this story with your network - let's spread inspiration far and wide! 👉 Follow Ben Botes for more insights on Leadership, Entrepreneurship and Impact Investment.