Investors remain firmly committed to supporting the energy transition that favors renewables and supporting the businesses that do right by doing good for the environment, panel experts agreed while speaking at the Robert F. Kennedy Human Rights Compass Summer Investors Conference.
AP6 CEO Katarina Staaf, who joined three others on the panel, cited some big numbers when discussing the significance of private market investments that are propelling the energy transition.
Staaf referred to research indicating that achieving net-zero emissions of greenhouse gasses will cost approximately $275 trillion between 2021 and 2050. This averages out to about $9.2 trillion per year, marking an increase of up to $3.5 trillion annually from current levels.
“The planet will survive; the question is whether humans will live on it,” Staaf remarked. “We need to restore the entire system. Everything we do and every business will be affected.”
The urgency for action on climate change is intensifying each month. Global temperatures in July set a record, marking the 13th consecutive month of such occurrences and the 12th straight month where temperatures were 1.5 degrees Celsius above pre-industrial levels. According to scientists at the United Nations, more record-hot years are inevitable.
New York State Comptroller Tom DiNapoli emphasized that his sole objective is to deliver risk-adjusted returns for the state pension fund, ensuring retirement security for 1.2 million New Yorkers. That’s why the fund is investing in climate solutions and encouraging portfolio companies, including those in the energy sector, to address the transition to a low-carbon economy.
“We made a decision long ago that climate is a material risk to our long-term value and should be incorporated into our decision making,” said DiNapoli.
Morten Welo, Partner & Chief Operating Officer and Head of Investor Relations at FSN Capital, said that although the private-equity firm operates in Northern Europe, its investor base is primarily in North America. The firm is committed to delivering strong returns in a sustainable and responsible manner.
For example, despite being active in Norway for 25 years, the firm has abstained from investing in oil. The ESG team collaborates with those in charge of investments to “find the risks, and more importantly, the opportunities in investments related to sustainability,” said Welo. “We understand the commercial value of doing this right.”
“For us, the concept of sustainability is very much linked with what it means to be a good investor,” stated Nazar Massouh, Chief Executive Officer, Co-Founder, and Co-Managing Partner at OIC. “You want to invest in a business that is not only going to go up in value over time, but at a minimum, will exist over time.” The RFK Human Rights Business and Human Rights team continues to engage with investors on climate sustainability and promoting positive investments in people and the planet.
The 2024 RFK Summer Compass Investors Conference was held from June 10-13 in Chatham and Hyannis Port. The 2025 Compass Conference will be held on June 9-12 at the Chatham Bars Inn.