Investing in a low-carbon world

Decarbonisation will be a powerful multi-year growth driver for select companies, as well as an existential threat for carbon-dependent businesses.

Jul 31, 2020

10 minutes

Decarbonisation will be a powerful multi-year growth driver for select companies, as well as an existential threat for carbon-dependent businesses.

What you should know

  • 2019 capped the hottest decade in recorded history. Every decade since the 1960s has been warmer than the previous one.1
  • Air pollution kills 7 million people annually and costs societies more than US$5 trillion a year.2
  • The world’s 215 biggest companies, representing nearly US$17 trillion in market capitalisation, value the climate risks to their businesses at a collective ~US$1 trillion.3

What is decarbonisation and why it matters?

  • Decarbonisation is the process of reducing carbon emissions to avoid the impacts of climate change.
  • The world needs to spend US$2.4tn every year to 20354 to limit temperature rises to 1.5˚C.
  • Just half a degree above that will significantly worsen the risks of drought, floods, extreme heat and poverty for hundreds of millions of people.

Why decarbonisation is now a mainstream investment priority

Decarbonisation will be a powerful multi-year growth driver for select companies, as well as an existential threat for carbon-dependent businesses.

Key advantages of investing in decarbonisation

  • Gain exposure to an area of structural growth
  • Offset carbon risk in other investments
  • Make a positive impact


Read the paper


1. Source: Research findings from NASA and the National Oceanic and Atmospheric Administration released in January 2020.
2. Source: United Nations press release, 31 May 2019.
3. Source: CDP report, June 2019.
4. Source: United Nations Intergovernmental Panel on Climate Change.

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