[MUSIC PLAYING]
SPEAKER: Our world is changing.
CHARLES DONOVAN: Extreme heat all over the continent
matched by sudden deluges of rain.
This is climate change happening on a daily basis.
SPEAKER: What does that mean for investors?
FIONA FRICK: You will have regulation risk on some companies.
You will have business risk on some companies that
will not be able to adapt.
CHARLES DONOVAN: In this country, they've
gone days this year without producing electricity from any coal-fired power
station.
Eight of them sitting there idle, ready to produce, but nobody wants the power.
SPEAKER: We are more than ever at risk of extreme weather.
Our planet is getting hotter.
RICHARD TEMPLER: So it's us burning fossil fuels that's producing this.
So we've got to find solutions.
SPEAKER: We're not sitting around waiting for new policies
to be announced, and neither should you.
The picture doesn't have to be bleak.
CHARLES DONOVAN: There's an enormous amount
of work going on in academia, in industry,
in order to provide the tools and analytics to break these things
into things that we can understand.
Things that we can put dollar signs to, and close that gap
of information which allows capital to be allocated more efficiently.
[MUSIC PLAYING]
SPEAKER: It's always been framed as something we should do.
Take care of the planet for future generations.
[RECORD SCRATCHING]
But can we make money from climate-ready investment?
DAVID SCAYSBROOK: Now, even in the United States,
large-scale wind and solar is competing at half of the rate
that conventional power generation is trading at, and new build gas,
new build coal can't even get close to competing to the rates
that we're seeing.
MICHAEL LEWIS: The cost is lower now for renewable energy, new renewable energy,
than fossil fuel.
So why wouldn't that be a global trend?
It's driven by the fundamental economics.
SPEAKER: Climate change is one of the biggest macro trends facing investors
this century.
It's moving to a tradable investment idea.
And this course with Dr. Charles Donovan is your chance to get up to speed.
CHARLES DONOVAN: Your time's precious.
So why are you going to do this course?
Well, there's three things, really.
We've got a great opportunity to spend some time with some very senior folks
in the finance industry who are going to tell us about how their businesses are
being changed.
FIONA FRICK: Taking into account climate risk in your investment philosophy
will, on the long term, bring superior return than just ignoring it.
RICHARD TEMPLER: We've now got this carbon dioxide in here.
SPEAKER: You'll learn a bit about the science.
RICHARD TEMPLER: And what you will see is
that the temperature of the bottle with carbon dioxide
reaches a higher equilibrium temperature than one with air in it.
And the reason for doing this is, that's what's going on in our atmosphere.
CHARLES DONOVAN: We're going to be talking about physical risks.
And these are the manifestations of climate change
like rising sea levels, ocean acidification, and extreme weather.
SPEAKER: You'll look at what these risks mean
for how we get around, where we go on holiday, and even what we eat.
And how that's going to affect the businesses focused on these things,
and the businesses that supply them.
CHARLES DONOVAN: And of course, ultimately, what we're
really talking about is the value of these companies.
We're not here to tell you what you should believe about these issues.
It's about presenting the facts, and letting you decide.
[MUSIC - THE INGRAM GOSPEL SINGERS, "IT'S GONNA RAIN"]
(SINGING) It's gonna rain, children.
SPEAKER: Consider this one fact.
Every five weeks, 9,500 brand new electric buses
take to the road in China.
9,500 buses is the equivalent of the entire London bus fleet.
Something big is happening, and there will be winners,
and there will be losers.
THE INGRAM GOSPEL SINGERS: (SINGING) They told me great God
when it began to rain.
CHARLES DONOVAN: Now, this is a scene increasingly common in London
and many cities around the world.
And if this gains hold, not just for delivery vehicles, but the cars
that you and I drive, well, something truly disruptive is going to happen.
THE INGRAM GOSPEL SINGERS: (SINGING) 'Cause God's got the key,
and you can't get in.
SPEAKER: This could be the biggest investment opportunity ever,
and it's only just beginning.
ZOE KNIGHT: We said we would facilitate 100 billion
of new capital in sustainable finance by 2025.
We will reduce our exposure to thermal coal.
We are moving to 100% renewables from an operational perspective.
CHRIS HUNT: And the journey hasn't even started.
We will be building wind and solar in the developing world for decades
to come.
CHARLES DONOVAN: It's not just about risk.
It's about building, and growing, and creating opportunities.
This doesn't have to be a sad story.
Let's get going.
THE INGRAM GOSPEL SINGERS: (SINGING) It's gonna rain.
It's gonna rain.
SPEAKER: We won't tell you what to think about climate risk,
but we will teach you how to be part of the investment solution.
THE INGRAM GOSPEL SINGERS: (SINGING) It's gonna rain.
It's gonna rain.