Ethical Investing, Carbon-Neutrality and the Internet-of-Things

Environmentally-focused investors often consider climate risks and carbon emissions reduction. Current efforts to report and reduce emissions may prove insufficient to meet the 1.5°C Paris climate goal. Analysis suggests that emissions need to reduce by at least 40% by 2030. To avoid a Malthusian trap, companies need to develop strategies for carbon-neutral operations. Offsetting can help, but emissions reductions are preferable. Technologies associated with the internet-of-things may deliver 15-20% emissions reductions by 2030, mostly via energy and efficiencies, which is far less than the 40% required. IoT technologies can also help with data collection for climate models, and monitoring emissions activities by specific countries and firms to support attribution activities. Ethical investors can support companies that develop strategies for attaining zero emissions or carbon-neutrality. They can also help identify and support firms developing the IoT technologies that are contributing to the above areas.