Companies offering adaptation solutions are "emerging as a complementary and increasingly investable part of the broader climate response," GIC and Bain said in the report released on Friday. Sales among a group of specific technologies will rise from an estimated US$1 trillion today, while the combined debt and equity value of those providing adaptation solutions could grow from about US$2 trillion to US$9 trillion by mid-century.
Revenue generated by climate adaptation could hit US$4 trillion ($5.18 trillion) by 2050 and deliver investment opportunities in sectors from firefighting technology to flood insurance, according to a report co-authored by Singapore's sovereign wealth fund.
Analysts at GIC Pte, which manages an estimated US$880 billion, and Bain & Co. identified key industries exposed to the adaptation theme, as some sustainability-focused investors begin to look beyond efforts to reduce greenhouse gas emissions and examine work to protect assets against the impacts of extreme weather.
