It doesn’t take a specific day to remind us of the looming challenges our planet faces with climate change. For us, every day is Earth Day because the urgency for action on 2 degrees drives all of our investments as we move to a clean economy.
We think about climate impact in terms of momentum. The energy transition is not an idea or a concept. It is here. And support is growing. That didn’t happen overnight. While we are still in the very early stages and opposition does exist, we see a convergence of critical policy, capital, corporate and customer structures, which gives us optimism that we can begin to create a sense of inevitability.
1. Policy and Corporate Commitments Align
Since the 2015 Paris Climate Agreement and the Sustainable Development Goals, global policy makers have signaled the importance of addressing climate. Despite rollbacks over the last four years, the signals of the Biden Administration to put climate at the center of economic policy represent a critical shift in how we think about long-term solutions.
Equally as important is the dramatic shift in how companies address climate and energy. Businesses that don’t have public, measurable carbon reduction plans are increasingly becoming the minority. Investment is moving toward those companies who demonstrate a clear ESG approach and that trend will continue to increase. We put it at the center of how we invest.
2. Consumer Demand is Increasing
From wildfires to weather-related blackouts, people are tired of unreliable energy systems. They want resilient, secure and green energy solutions. From EV’s to solar, consumers are looking for ways to transition away from models serving up fossil fuels and blackout-prone infrastructure. Those companies who recognize the desires of their customers and put them at the center of their energy solutions will be the ones who win.
3. Technology is Speeding Up the Energy Transition
Like almost every other major sector, technology is rapidly increasing the energy transition. Technologies that create more clean energy solutions and the software that powers the digitization of the energy experience are creating ways to rapidly increase uptake. The power of getting into the home and behind the meter is where real value will be created.
In the next decade we believe some of the most valuable new brands on the planet will be built in the energy sector. We aim to finance, inspire, and build many of them.
Our mission is to serve as one catalyst, working with aligned partners, to transition markets to zero-carbon structures. We are targeting 1GT of avoided carbon from businesses we invest in and build over that period.