Climate change is a reality. Twenty percent of the global businesses are directly getting impacted by global warming. The balance eighty percent are being affected by association.
Future-ready businesses will prevent getting disrupted.
Investors look for alpha. Alpha will come from future-ready businesses. Analyzing ESG strategies and policies of a company sits at the center of future readiness. Smart long-term investors are beginning to understand this trend. They look at the business strategy, business model, and business operations of a company.
As an investor, you need to invest in businesses that are preparing themselves for these trends. For instance, look for the current energy mix and plans to move to low carbon or no-carbon energy sources.
ESG policy analysis should be an integral part of all investment strategies.