While there has been a recent, notable shift in sentiment toward investing in climate solutions, it is important to maintain a long-term, through-cycle view, as action to mitigate emissions is needed more than ever. Corporate investments into building new climate technology businesses have been rising consistently from 2019 to 2023, driving growth for those actively investing, but current deployment levels of low-emission technologies are at only 10 percent of the levels required to reach net zero by 2050.1'The hard stuff: Navigating the physical realities of the energy transition,' McKinsey, August 14, 2024. Incumbent companies, particularly in capital-intensive industries, can play a role in bridging these gaps. As some of the most well-established companies from across the globe, these incumbents have inherent advantages including balance sheet size, organizational scale, experience in capital project delivery, as well as strategic and R&D capabilities. There has been recent...
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