The impacts of climate change on the global economy could not be clearer.
Unabated climate change is projected to wipe off up to 18% of worldwide GDP by 2050 and reduce as much as $23 trillion in in annual global economic output1. On the other side of the same coin, climate change solutions, such as clean energy investments are a $5 trillion investment market, which could add up to 0.4% in annual global GDP growth2.
As companies and investors plan for long-term performance, positioning themselves in light of this reality is key. As a result, they are setting climate change and even net zero goals in ever-increasing numbers to demonstrate their intention to transition and stay resilient in a changing world.
Yet, these goals have not been matched with details on how this transition will be realized and importantly, how capital will be deployed. For corporate and investor action on climate change to be effective, it must be built on a shared understanding of how such actions will contribute to global decarbonization and build value in the long term.
As an organization whose mission is to focus capital on the long term, tackling the investment implications of climate change is central to FCLTGlobal’s work. Our team is developing research and tools that will help companies and investors meet the goals outlined above.