We are the frog that has now at least become aware that the water is getting a lot warmer. It remains to be seen whether we have the wherewithal to make the necessary changes and commitments as a species to head off the worst effects of global warming.
The IPCC Working Group I released the first installment of their Sixth Assessment Report and their conclusions are clear:
- Global warming is primarily driven by human activities
- Weather patterns are changing dramatically – both geographically and temporally
- Coastlines, cities, and oceans are all bearing the brunt of the changes that have already begun
While the IPCC has been ringing the alarm bell for a long time, this latest update is the strongest warning to date.
With all that said, it is a Monday and a day that I typically reserve for optimism only. So where in all this is the silver lining? To be honest, there are many. We are seeing the beginning of a secular shift in investment demand. From individual investors to corporations to pension funds, everyone has awoken to the fact that there are myriad solutions to the fundamental problems the IPCC report is highlighting. Renewables, resource efficiency, water, waste, carbon capture, hydrogen, EVs – the list is long and growing. Not only are there ways to reduce carbon and greenhouse gas emissions across the economy, but we’re in the second inning of what is sure to be a multi-decade opportunity in sustainable investments.