A new view of corporate resilience and opportunity
Climate adaptation is an investable opportunity in public markets. But can investors can see it?
A new report from the MSCI Institute builds on the 2024 GARI report "The Unavoidable Opportunity" and reveals broad corporate engagement with adaptation and resilience across companies representing roughly $96 trillion in global market capitalization:
“GARI was founded on a conviction that the private sector has both a role and a self-interest in building resilience, not just as a matter of risk management but as a pragmatic growth opportunity. Since collaborating with the MSCI Institute on "The Unavoidable Opportunity" in 2024, we have argued that the market for adaptation and resilience solutions is larger and more commercially compelling than conventional wisdom assumes. This updated analysis by the Institute vindicates that argument with a rigor we could not bring to bear two years ago.
What this paper shows is striking. The vast majority of listed companies are already taking
hazard-specific actions to protect their operations. Half are generating revenues from products and services that help customers, communities and governments build resilience, spanning every sector, every major hazard, and every geography. Adaptation and resilience investments are not confined to a handful of specialist firms. They are hiding in plain sight.
We have more certainty about the trajectory of climate change over the next decade than we
have about interest rates, inflation or geopolitics. The case for resilience investing does not rest on speculation. It rests on what we already know. The opportunity is unavoidable. The opportunity is clear and present. The only real question is who acts on it first.”
Jay Koh
Founder and Chair
GARI
Read the full report The Hidden Adaptation Economy: A New View of Corporate Resilience and Opportunity here.
The Unavoidable opportunity
Leading Financial Organizations Unveil Investor Toolkit for Climate Resilience Solutions
“The Unavoidable Opportunity: Investing in the Growing Market for Climate Resilience Solutions ” was released by the Global Adaptation and Resilience Investment Group (GARI) in partnership with MSCI Sustainability Institute, the Lightsmith Group, the Bezos Earth Fund, and ClimateWorks Foundation.
A group of leading financial and philanthropic organizations today released an investor report and toolkit highlighting climate resilience solutions as a key growth industry of the 21st century. “The Unavoidable Opportunity" presents a first-of-its-kind, AI-powered framework identifying a universe of over 800 publicly traded companies in the business of resilience along with methods investors can use to find these companies and incorporate climate resilience into investment product design.
The report is authored by GARI, a leader in climate finance, with data and analytics provided in partnership with the MSCI Sustainability Institute and The Lightsmith Group. It was released in conjunction with a new framework for Climate Resilience Investments in Solutions Principles (CRISP) developed by GARI to provide a comprehensive approach to identify relevant companies considering all regions, growth stages, asset classes and sectors.
Read the report here.
Read the CRISP framework here.