For the majority of investors, thinking about solutions for climate change is a binary decision.  Divesting from oil and gas, accelerating adoption of renewable energy and ensuring grid flexibility is an oversimplification of objectives that doesn’t take into account the nuances of decision making and management each region needs to transition to net zero.  While thoughtful execution towards the energy transition is critical to mitigating climate change, and restoring balance between humanity and nature, every sector has its part to play.

To understand why investors need to think in broader terms, it is important to understand where global green house gas (GHG) emissions come from. According to Climate Trace, 33% of GHG emissions originate from the power and transport sector with the remainder coming from other sectors such as buildings, agriculture, manufacturing, and land use. This means that for the most part, investors are focused on only a third of emissions when thinking of climate solutions.

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