Climate Week 2024: What Should Investors Look For? (Part 1)

Less than two weeks until Climate Week 2024 and the associated cornucopia of panels, forums, symposia, conversations and receptions. What can investors attending the 10-day extravaganza in New York expect to gain insights into as they brush shoulders with politicians, policy makers, company executives, technical experts, celebrities and hundreds of other interesting attendees? At Odgers Berndtson we believe investors will be scrutinizing several key areas that are shaping the future of sustainable finance and clean energy investment. Here are just some of the key topics.

Investors will hopefully learn more about the latest developments in climate-related policies, including updates on the Inflation Reduction Act (IRA) and its impact on renewable energy investments. There will also be discussions on evolving global regulations, such as the EU's Corporate Sustainability Due Diligence Directive, which could influence investment strategies. [1] 

Investors can also expect that the event will highlight emerging opportunities in sectors like renewable energy, carbon capture, hydrogen, and advanced battery technologies. Investors will gain a better understanding of where capital is flowing within the clean energy sector, particularly in areas that are expected to see significant growth, such as utility-scale solar, battery storage, and EV infrastructure. [2] 

Panels will no doubt also address the ongoing challenges in scaling up clean energy technologies to meet rising demand. Discussions will likely focus on the need for innovation in grid infrastructure, energy storage, and decarbonization technologies, as well as the role of private capital in financing these advancements. [3]

Investors will hear again about the importance of long-term collaboration between public and private sectors to successfully navigate the clean energy transition. This includes strategies for managing the risks associated with large-scale infrastructure projects and ensuring that investments align with long-term sustainability goals. [4]

Finally, given the increasing energy needs of AI and data centers, investors can expect discussions on how these technologies are reshaping energy consumption patterns and what this means for future investments in energy efficiency and renewable power sources. [5]

Overall, Climate Week 2024 will provide investors with a comprehensive view of the current landscape in sustainable investing, offering valuable insights into the opportunities and challenges that lie ahead in the journey towards a low-carbon economy. But how well equipped is leadership in the industry to drive, adapt and lead and address the ever-changing reality in climate and energy transition? 

At Odgers Berndtson we believe that leadership and talent issues are the critical enabler to successful investing and a prerequisite for companies to unlock the potential value in their technology and business models. Consequently, perhaps more so than ever before, leadership and talent should be a significant focus at Climate Week 2024, influencing discussions in several keyways. Here are some of the challenges and opportunities we see our clients grappling with. 

1. Talent Shortages in Climate Tech: The rapid growth of the climate tech sector, including areas like renewable energy, decarbonization technologies, and AI-driven sustainability solutions, has created a high demand for skilled professionals. However, there is a notable shortage of talent with the necessary expertise to drive these initiatives. This gap could hinder the pace of innovation and project implementation, making talent acquisition and retention a critical topic during the event​. [6]
2. Leadership in Navigating Energy Transitions: Effective leadership is crucial for guiding organizations through the complexities of the energy transition. Discussions will likely explore how leaders in the private sector are balancing short-term financial pressures with long-term sustainability goals, and the role of leadership in fostering a culture of innovation and resilience within organizations. [7]
3. Diversity and Inclusion in Green Jobs: The transition to a green economy provides an opportunity to address diversity and inclusion within the workforce. There will likely be conversations around how to ensure that underrepresented groups have access to the growing number of green jobs and how leadership can drive inclusive hiring practices in the climate sector​. [8]
4. Leadership Collaboration Across Sectors: Climate Week 2024 will emphasize the importance of cross-sector collaboration, where leaders from government, private industry, and civil society work together to scale up clean energy solutions and meet climate goals. The ability of leaders to forge effective partnerships and align diverse stakeholders around common objectives will be a key theme​. [9]
5. Leadership Development and Education: As the climate crisis evolves, so too must the skills and knowledge of those leading the charge. There will be discussions on the importance of leadership development programs that focus on sustainability, climate science, and innovative business practices to prepare the next generation of leaders for the challenges ahead.

In summary, leadership and talent issues will significantly influence Climate Week 2024, as they are integral to the successful implementation of climate strategies and the scaling of sustainable technologies.