Is there enough investment in clean energy?

Climate Cast
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Automatic TRANSCRIPT

Mindy, big investors, like Morgan Stanley Bank of America are investing big and climate solutions. Why is private equity pushing climate change solutions on the market sprawling? There's no question the climate is changing, and we hear companies investors consumer scientists saying that and we know we need to act. So if we need to bring down our reliance on fossil fuels on coal and dirty oil. We need to go somewhere and that somewhere around renewable energy. And that's why you're seeing whether it's private equity Republic equity or large institutional investors were saying far more money flow into renewable energy and cleaner buildings cleaner transportation, and it's adding up last year there was somewhere around three hundred and fifty. Thirty billion dollars put into a clean energy future. That's a global number next year, it'll be substantially more. We're seeing it because there's a market for it. People want it. They're demanding it they're calling for it. And we need to be able to get them to clean energy. They'd like to see Mindy. We talk about climate risk here on climate. How're big company seeing that climate risk show up in their supply chains and even their bottom lines companies and small companies alike across every sector of our economy seeing that climate risk show up, and let's give a couple of examples if you're a farmer or you're an agriculture and the climate changes for better or for worse. Sometimes there's more rain sometimes it's too dry in either case we've seen agricultural crops die we've seen farmers able to farm half their land. We've seen farmworkers put out of work. We've seen restaurants not have the food. They need or groceries. If you're in the apparel business, you're the gap your Levi stressed your banal. China Republic or anyone of our global retailers. When you're cotton crop is because there's not enough water in the places where you've had that planted. You lose substantial resources in revenue if you're in the insurance sector last fall when we had three three storms looking at Houston looking at Puerto Rico and looking at the keys in Florida. The numbers were over one hundred billion dollars in losses. We are not talking about small losses. We're talking about huge impacts on real estate on agriculture on insurance on finance in every sector of our economy. Climate risk is a real financial risk not only scientific imperative but the risk to the bottom line of thousands of companies is growing everyday Mindy. I'm encouraged to see the scale of investment in climate solutions. But looking at the atmosphere how much faster does it need to happen to mitigate atmospheric impacts on business. In the future. Like, paul. You're asking exactly the right question. It is a huge number that we've seen three hundred fifty billion dollars investing in clean energy. And it is not nearly enough. The problem is growing faster. We are being told by the world's leading scientists that we have to see radical change in twelve years that's going to require a lot more than three hundred and fifty billion dollars. We are going to need to see. Well, over a trillion dollars a year invested in clean energy, clean transportation future. And those investments are in only here in the United States. We need to see massive amounts of capital going to the developing world, we need to see massive changes in China. And India if we are to get to that below two degree world or a one point five world degree world is leading scientists tell us we must our investments need to triple quadruple on an annual basis. So I'm curious about the corporate boardroom corporate, see something. Are essentially risk managers. How has climate risk worked its way into the boardroom, and how much is that changed over the last ten to fifteen years. Well, the change over the last fifteen years is nothing short of radical fifteen years ago the term climate risk barely existed. When we first convened hundreds of investors from around the globe, institutional investors, large pension funds as well as money managers from Goldman Sachs to chase P Morgan Morgan Stanley Bank of America city. And so on they want to know why we were asking them to come into a room. Frankly, then we did it at the United Nations to talk about climate change. They believe that was an environmental issue that had nothing to do with economy. That's of course, changed fifteen years from now, we know this is a colossal excess essential threat, not only to the future of our kids and our planet. But to our economic well-being, we are being told by leading a communist that the impact of climate is. Stanchly greater than the impact we felt from the subprime meltdown. So we're talking about massive economic impacts over the last fifteen years radical change what it companies doing many of them are setting goals to bring their greenhouse gas. Emissions down were committing to a one hundred percent renewable energy in the next five years and more and more of that is happening but still not nearly enough or last week at the international climate negotiations in Poland four hundred and twenty of our investors whose assets total thirty four trillion dollars called on government leaders at that international negotiation to implement a plan that's clear that has focused and that's consistent with the goals of the Paris agreement. So not only companies changing, but their largest owners the biggest investors in those companies are saying we want you to act on climate. And we want you to change your practices all the way through to your supply chain. Sooner rather than later, and you asked about corporate boards, corporate boards are acting. I was in Naples, Florida. A couple of weeks ago with the national association of corporate directors talking with hundreds of corporate directors around that why these issues why climate change is a governance issue for corporate board members why they need to examine the risk of climate change. Some are some aren't but the bottom line is five years ago. Very few if anywhere now that number is growing, I think we are seeing real change in corporate America and at the investor level, but not

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