Welcome to the 2nd edition of the ScopeFour Capital newsletter. Here we’ll share opportunities, challenges, musings and silver linings into what is current and relevant at the intersection of climate and capital. We believe the decarbonization trend is a generational investment opportunity akin to the digitization of our economy – it involves electrification, scaling technology, net zero buildings, industrial efficiency, consumer habits and rethinking our global food system.
ScopeFour Capital has six investment themes. Each quarter we’ll focus on one of these critical themes. This quarter, we highlight Clean Technology.
In The News
These recent stories grabbed our attention.
So how is Clean Tech implemented in ScopeFour’s Portfolio?
Clean Technology doesn’t always translate to AI or big data. Sometimes the implementation of and scaling of technology we already have is equally, if not more impactful. While some of our companies are on the forefront of technology like using drones for afforestation, many are centered around energy efficiency and scheduling. This approach is both a scalable approach to emission reduction and a viable to way invest in proven technologies that lead to revenue growth and stock price appreciation.
Companies in our Clean Tech theme contribute to decarbonization by producing and distributing controllers, sensors, software, hardware and also consult on the growing application of the aforementioned technology. Buildings, as an example, account for 27% of energy emissions. As building standards and codes increase, there will be an increase in retrofitting buildings to lower emissions. In the United States alone, the government’s central purchaser is already beginning to allocate $3.4B received under the climate law to building efficiency projects.
Some of the specific portfolio companies that will benefit from these tailwinds include, Lennox, a U.S.-based company that provides energy efficient HVAC systems; Schneider Electric, a French company that specializes in digital automation using controllers, switches and sensors; Carlisle, a U.S.-based company that provides roofing and weatherproofing solutions; Azbil, a Japanese company that retrofits older buildings for increased energy efficiency; and Irish-domiciled Accenture, which offers consulting solutions to optimize a building’s entire energy ecosystem.
Thanks for sharing our enthusiasm for mitigating climate change while generating attractive, long-term risk adjusted returns.
The ScopeFour Capital Team
840 Apollo St Ste 100, El Segundo, CA firstname.lastname@example.org
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