The Unavoidable Opportunity

Climate change is generating increasing and more certain risks and impacts.

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Read the GARI 2024 – The Unavoidable Opportunity Report

The Twin Pillars of Climate-Focused Investing

These complementary strategies form the foundation of forward-thinking climate investment, offering both environmental and financial returns in an era of unprecedented change.

investments in climate resilience

There is now greater certainty around the near-term trajectory of climate change and the demand drivers for climate resilience, the capacity of systems, to adapt, recover, and thrive in the face of climate-related impacts, which are uncorrelated and independent from other market forces.

investments in decarbonization

Technologies and solutions that can reduce the risks and impacts of climate change by reducing or eliminating carbon emissions are growing in demand, generating related and attractive growth opportunities for investors.

The Investment Opportunity in Climate Resilience

Climate change is creating an urgent and growing market for adaptation solutions. With over 800 publicly traded companies already offering climate resilience products and services, this represents a significant and largely untapped investment opportunity.

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Substantial market: $63 billion invested in 2021/2022, growing 29% year-over-year

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Underinvested theme: Less than 5% of climate finance goes to adaptation

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Enhanced returns: Climate resilience investments can boost decarbonization efforts

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Global impact: Solutions address critical needs across all sectors and geographies

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INVESTMENT OPPORTUNITY

The Unavoidable Growth in Climate Resilience

As climate impacts intensify, the market for adaptation solutions is expanding rapidly, offering a compelling and underexplored investment opportunity across multiple sectors and geographies.

  • Substantial market potential with over 800 public companies identified
  • Enhances returns of existing climate and sustainability investments
  • Addresses critical global needs while supporting equity/environmental justice
  • Leverages existing technologies and emerging innovations
  • Resilience Companies in Industrials & Materials 58% 58%
  • Annual Growth in Adaptation Investment 29% 29%
  • Emerging Market Resilience Companies 28% 28%
  • Climate Finance for Adaptation 5% 5%

Examples of Climate Resilient Solutions

Sea-level processing software

Advanced algorithms analyze complex oceanographic data to predict sea-level changes with unprecedented accuracy. This software enables coastal communities and urban planners to develop proactive strategies for flood management and infrastructure protection, ensuring long-term resilience against rising waters.

Disease surveillance systems for outbreak detection

Cutting-edge AI-powered systems continuously monitor global health data to identify potential disease outbreaks before they escalate. By providing early warnings and real-time tracking, these systems empower health authorities to respond swiftly, potentially saving countless lives and mitigating the economic impact of pandemics.

Remote sensing-based drought monitoring tool

Satellite imagery and advanced sensors combine to provide comprehensive, real-time data on soil moisture, vegetation health, and water availability. This tool enables farmers and resource managers to anticipate and mitigate drought conditions, optimizing water usage and protecting crop yields in increasingly unpredictable climates.

Artificial intelligence for grid management

Smart AI systems optimize power distribution, integrating renewable energy sources and predicting demand fluctuations with remarkable precision. This technology enhances grid resilience against extreme weather events, reduces outages, and facilitates a smoother transition to sustainable energy infrastructure.

Intelligent transportation systems

These advanced systems leverage real-time data and AI to dynamically manage traffic flow, especially during natural disasters. By rerouting vehicles away from danger zones and guiding first responders to critical areas, they significantly improve emergency response times and overall public safety in crisis situations.

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