Ecofin Senior Portfolio Manager Matt Breidert in Morningstar

The Case for Investing in Climate Adaptation

Move over, Home Depot and Lowe’s. Here are the companies that stand to benefit from the climate transition.

You’re about to hear a lot more about climate adaptation. That’s the industry built around creating resilience in our infrastructure as the planet warms.

For all of society’s efforts to curb global warming—including the recently concluded COP28 United Nations climate summit—temperatures will continue to rise for at least another century. Global temperature is on track to rise by 2.5 degrees Celsius to 4.5 degrees Celsius (4.5 degrees Fahrenheit to 8.0 degrees Fahrenheit) by 2100.

After the hottest year on record, we’re likely to see continued fallout, including increased risks of wildfires, droughts, floods, and what scientists call “disruptive inundation.”

These certainties don’t mean we stop trying to cut emissions. But they do mean we need to reshape our lives to the warming climate—which creates opportunities for investors.

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