The Brown-to-Green Transition is Selected by KKR as a Major "Mega-theme" for the 2024 Outlook

The Brown-to-Green Transition is Selected by KKR as a Major "Mega-theme" for the 2024 Outlook

Original article written by: Mark Segal

While decarbonization efforts to date have primarily focused on "asset light" technological advancements, KKR notes in a report that investments going forward that aim to enable at-scale climate impact will likely be "much more asset-heavy in nature," generating large-scale opportunities targeting the larger, more emissions intensive sectors of the global economy. Henry McVey is the CIO of KKR's Balance Sheet and Head of Global Macro and Asset Allocation.

The paper also notes potential related to climate change arising from the development of artificial intelligence technology and new energy sources that "will require the footprint of energy distribution to be reworked." 
The outlook report also emphasized the mega-themes of "Artificial Intelligence," "Labor Productivity/Work Force Development," "Industrial Automation," and "Security of Everything."

After working for 20 years in investment management and research, Mark started ESG Today. Mark was employed at Toronto, Canada's Delaney Capital Management (DCM) before starting ESG Today. Most recently, he served as the company's head of U.S. equities. Mark worked for DCM as a member of the ESG team, which was in charge of monitoring and analyzing the sustainability variables that affected the portfolio firms and determining which ones were suitable to be included in the portfolio.