AI’s rapid growth is driving demand not only for electricity but also for the clean water needed to run its physical infrastructure. As data centers expand, rising water intensity is straining supplies and testing long-term sustainability. In our analysis, these pressures create both risks and opportunities for active investors.
The importance of biodiversity as a nature-related risk in investors’ portfolios has become better understood in the past few years. Investors are beginning to appreciate how complex and nuanced biodiversity risk can be.
Investors face an urgent challenge in understanding, analyzing and managing biodiversity risks.
Investors are warming to opportunities stemming from climate change, and other takeaways from COP28.
From the dense Amazon jungle to wide stretches of Malaysian palm oil plantations, agricultural practices have been stripping the world of vital forests for decades.
As investors and companies increasingly seek to address the risks of climate change, there is growing debate about the use of carbon offsets in achieving net-zero emissions. We think there’s room for a measure of offsets to achieve carbon neutrality, provided best practices are followed.
It’s not uncommon for stakeholders in large organizations to have different views on the meaning of ESG and the importance of its pillars in defining organizational success. That’s understandable, and in fact, diverse perspectives can be a source of strength when making investment decisions.
