Chris Goolgasian On Adaptation Stocks & Strategy

What makes a company an “adaptation play?”

It’s a question Chris Goolgasian, Director of Climate Research and portfolio manager at the $1.2trn investment company Wellington Management, has devoted himself to in recent years.

Chris oversees an investment strategy focused on stocks that should thrive as the world works to become more climate resilient — particularly those issued by companies that are addressing key climate risks: heat, drought, wildfires, hurricanes, floods, water scarcity, and sea level rise.

In this episode, he describes Wellington’s approach to adaptation investment, talks about the challenges distinguishing signal from noise when it comes to picking adaptation stocks, and the similarities and differences relative to climate transition investing.

Chris then also shares some of his long-term predictions for climate-driven shifts in the economy, from the rise of subsidized air conditioning to the future pricing of water.

These mega-trends could make, or break, entire sectors of the economy. Now’s the time to get wise to them.

Listen below, download from the Podcasts page on Climate Proof, or tune in via Spotify or Apple Podcasts.

We talk about:

👉 Wellington’s seven-peril framework for identifying climate adaptation companies

👉 How Wellington goes about choosing adaptation stocks for its funds, and why many businesses don’t even realize they are adaptation plays

👉 Chris’ thoughts on climate data, vendors, and the importance of understanding the assumptions underlying risk models

👉 Why adaptation investment opportunities are harder to define than transition investments and the barriers to scaling adaptation-focused companies

👉 Chris’ adaptation mega-trends, from government-subsidized air conditioning to the rise of “reclaimed water”

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Thanks for listening!

Louie Woodall
Editor