What is climate-proof infrastructure?

Climate-proof infrastructure refers to buildings, systems, and facilities designed to withstand extreme weather events and changing climate conditions. This includes flood protection systems, heat-resistant materials, wildfire suppression technology, and reinforced coastal defenses. These specialized solutions help communities and businesses remain functional despite increasingly frequent climate-related challenges.

Why is climate adaptation considered a growth industry?

Climate adaptation is emerging as a growth industry because extreme weather events are becoming more frequent and severe, forcing governments and businesses to invest in resilient infrastructure. Unlike discretionary spending, these investments are increasingly viewed as necessary and non-negotiable. The companies providing these solutions are positioned to benefit from massive public and private spending as climate impacts intensify.

What's the difference between climate mitigation and climate adaptation?

Climate mitigation focuses on reducing greenhouse gas emissions to limit climate change (like renewable energy and electric vehicles), while climate adaptation involves preparing for and responding to climate impacts that are already happening or inevitable. The companies in this group focus primarily on adaptation - building infrastructure that can withstand floods, fires, heat waves, and other climate-related challenges.

How do dividend yields relate to these infrastructure stocks?

Dividend yield represents the annual dividend payment as a percentage of the stock's current price. Some infrastructure companies pay dividends as they generate steady cash flow from long-term contracts. For climate-resilient infrastructure builders, dividend policies may vary - established firms might offer reliable dividends while faster-growing companies might reinvest profits. The dividend yield and payment dates are important factors to consider when evaluating these stocks for income.

What are projected sales and projected profit?

Projected sales (or revenue) and projected profit refer to analysts' forecasts of a company's future financial performance. These projections help investors gauge growth potential. For climate infrastructure companies, strong projected sales growth might indicate increasing demand for their adaptation solutions, while improving profit projections could suggest they're effectively managing costs while expanding. These metrics provide insight into each company's financial trajectory.

15 handpicked stocks

Climate-Proof Infrastructure Builders

Invest in the companies engineering our world to withstand climate challenges. These carefully selected stocks represent firms creating the infrastructure we need as extreme weather events increase - from flood protection to wildfire suppression and cooling systems.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17