CLIMATE IMPACT: We provide capital and support to businesses addressing pressing environmental challenges globally.
CLIMATE IMPACT: INVESTMENT APPROACH
We are active investors partnering with entrepreneurs and businesses to drive scalable solutions.
We invest globally, with a focus on North America and Europe.
CLIMATE IMPACT: OUR FOCUS
We focus on innovations to manage the transition to a climate neutral economy.
First Principles: Consider the Science
Per the UN International Panel on Climate Change (IPCC):
Human activities are responsible for 1.0°C of global warming through 2018 which is likely to reach 1.5°C between 2030 and 2052 if it continues to increase at the current rate.
Climate-related risks to health, livelihoods, food security, water supply, human security, and economic growth are projected to increase with global warming of 1.5°C and increase further with 2°C. These risks are due to rapidly changing regional climates, flooding, volatile weather, and drought.
To achieve a pathway in which global warming does not exceed 1.5°C, annual CO2 emissions must decline by about 45% from 2010 levels by 2030 and reach net zero by 2050. For limiting global warming to below 2°C, CO2 emissions must decline by 25% by 2030 in most pathways and reach net zero by 2070.
Pathways limiting global warming to 1.5°C would require rapid and far-reaching transitions in energy, land, infrastructure, transport, and industrial systems. These systems transitions are unprecedented in terms of scale, imply deep emissions reductions in all sectors, a wide portfolio of mitigation options and a significant upscaling of investments in those options.
REDESIGNING INDUSTRIAL PROCESSES
To reach net-zero emission by 2050 or 2070, the world needs to transition entirely from 83% fossil-based energy to 0%.
The UN IPCC estimates the energy transition alone will require the mobilization of $2.4 trillion in annual energy investment through 2050.
We invest in picks-and-shovels businesses enabling the energy transition.
The two largest components of the fossil-fuel driven economy that need to electrify are transportation and buildings, which account for 35% of all GHG emissions, (IEA, 2021).
To date electrical vehicle penetration (as measured by total miles traveled) is less than 2%, (BNEF, 2021). BNEF projects EV penetration will increase to 20% by 2050 and needs to penetrate to near 100% to hit the IPCC guidelines to remain below 2C of warming.
There are an estimated 2.5 billion residential units in the world forecast to increase by 1-1.5 billion units by 2050. According to the IEA’s projection, demand for cooling (refrigeration and buildings) will more than triple to over 6,000 TWh, by 2050 driven by economic growth, and increase to 30% of a building’s electrical load as temperatures increase.
We invest in businesses enabling the electrification of the economy.
REDESIGNING INDUSTRIAL PROCESSES
Process heat for thermal manufacturing processes amounts to approximately 30% of all GHG emissions, (IEA, 2021). These include the manufacturing of cement, steel, plastics, petrochemicals, fertilizers, and other major industrial commodities.
These industrial processes are often decades old technology and require a significant redesign to achieve low- or zero-carbon materials.
We invest in companies that have low-carbon or carbon-free industrial processes.
The world produces approximately 5.5m tons per day of solid waste, or 2b tons annually which is forecast to increase 75% by 2050.
Landfills and dumps produce 3-4% of total global emissions, and by not reusing materials, additional global emissions are generated from the manufacture of goods from virgin commodity sources.
We invest in companies that are or have successfully redesigned a section of the supply chain that enables raw materials to be reused in an endless circular loop.