Goldman Sachs – Adaptation, 2024

Goldman Sachs predicts that Adaptation, proactive or reactive measures to reduce the impact of rising temperatures, will be a growing theme even if global temperatures only rise by 1.5 degrees Celsius. They believe that investors and corporations will focus on Adaptation through the lenses of physical risk, financial risk, and revenue opportunities. They estimate that $400 billion per year of proactive investment will be needed this decade to fully address Adaptation challenges. The report assesses risk exposure to nine potential hazards and explains why Adaptation will be a significant focus regardless of the climate outcome. The focus on Adaptation is expected to increase in the near to medium term, leading to increased measures to quantify physical risk, investments in Adaptation solutions, and new ways to gain exposure to such solutions. The report also highlights potential beneficiaries of Adaptation investment, including companies in energy, water, infrastructure, consumption efficiency, biodiversity management, and health sectors. Investors are predicted to favor companies with favorable returns that benefit from infrastructure investments related to energy, water, and resource efficiency technology.