Policy Solutions

Corporate Focus Areas

Investment
Corporate

Corporations have a significant role to play in accelerating new low-emissions technologies to market. (See Research and Development and Procurement sections.) Corporate sponsorship of research, development, and demonstration (RD&D) projects and procurement practices that signal and focus market demand are important “investments” in new technologies.

In addition, financial investments by corporations in early-stage entrepreneurs and nascent technology companies can provide unique benefits that accelerate and scale game-changing low carbon products. By providing capital along multiple stages of a technology’s development, companies and private-sector institutions can help high-potential innovations better navigate their transition from idea to market.

Corporations can also use their investment strategies to make a difference against climate change—either by themselves or in partnership with other companies. Usually, however, the best way to maximize leverage and acceleration is through investment via corporate partnerships with philanthropists, governments, and other intermediaries. In this way, companies can share risk and bridge gaps between investing instruments.

In all these cases, the benefits to the corporation are access and returns: access to innovation, technology, and talent; and returns in the form of equity, innovative technology, or more-efficient internal processes. Clear investment strategies linked to corporate sustainability goals help shape and drive the market towards climate impact solutions and lower overall emissions.

Companies can use investment strategies to accelerate the adoption and growth of new green technologies by:

  • Supporting the development of climate entrepreneurs.
  • Providing direct operational support for emerging low-carbon technologies.
  • Becoming a partner in innovative funds that prioritize climate impact, including those that leverage expertise and funding from the public sector.
  • Improving access to capital for emerging climate technologies that face structural market barriers to scale.

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