Three Steps Forward on Climate

The climate change alarm bells have been ringing louder than ever in the last few weeks. See, for instance:

• the rapid acceleration of ocean temperatures that are now reaching record-breaking levels;
• research that cites climate change as the cause for East Africa’s drought – the worst in 40 years – that has displaced millions of people;
• and of course the recent IPCC synthesis report, featuring indisputable evidence of climate change’s impact on ecosystems and extreme weather events.

I think we can all agree – it’s jarring to read the IPCC warning: “There is a rapidly closing window of opportunity to secure a livable and sustainable future for all.”?

Are you wondering what, if anything, you can do to make a difference? At Novata , we work closely with investors that are asking themselves this same question. Here are three tangible steps that we recommend:

1. Know where you stand: Progress can only be made if you know where you stand today. As we like to say – you can’t manage what you can’t measure. Measuring your portfolio’s carbon footprint is easier than ever with the help of technology. Check out Novata’s new refined carbon calculator (created in partnership with The Change Climate Project ) to get a feel for how easy it can be to get started.
2. Decide where you’re going: Ask yourself and your firm – what’s the authentic way that we can drive progress? Is it by focusing on reducing the carbon footprint —?and therefore the energy transition risk — of portfolio companies? Or is it by steering capital toward high-growth companies that are creating the next generation of climate-friendly technologies? Pick an approach that you genuinely believe can generate both great returns and positive impact.
3. Do the little things: At firms big and small, we make daily decisions that impact our planet. Consider evaluating and improving your internal operations to become a more sustainable organization, for instance by reducing waste or limiting corporate travel. Every bit matters, and doing the little things reminds us of the importance of doing the harder, bigger things.

I was really touched by U.N. Secretary-General António Guterres ' letter to his great-great-granddaughter. He predicts she will ask of him, and of our generation: “What did you do to save our planet and our future when you had the chance?”

It’s the question that each of us must now ask ourselves. What will your answer be?