The Lightsmith Group’s Adaptation Investment Strategy
Mar 13, 2024
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Jay Koh, co-founder of Lightsmith Group, discusses their investment strategy focusing on climate resilience. They invest in sectors like cloud resilience and agriculture using technology for proactive risk analysis. The podcast explores innovative solutions like solar hydropanel technology for addressing climate challenges and calls for more investment in climate resilience.
Lightsmith Group focuses on data analytics and scalable solutions for climate adaptation.
Psychological readiness is crucial for adapting to the accelerating rate of climate change.
Technology deployment in supply chains increases resilience to climate change shocks.
Deep dives
Challenges of Climate Change and Adaptation Strategies
Climate change poses complex risks such as fire, drought, and flood, which are now intensified and shifted to different locations with increasing frequency. Lightsmith Group focuses on climate adaptation and resilience, emphasizing data analytics and scalable solutions to understand and manage these amplified risks.
Adaptation vs. Mitigation in Climate Strategies
The conversation around climate change often prioritizes mitigation over adaptation. Despite efforts to limit warming to 1.5 degrees Celsius, the impact of climate change is inevitable, requiring a shift in focus towards preparing and adapting to the changing environment. Lightsmith Group emphasizes the psychological acceptance and readiness needed to navigate the accelerating rate of climate change.
Investment Focus and Impact of Lightsmith Group
Lightsmith Group operates as a global growth equity fund investing in companies beyond the venture capital stage, with a revenue range of $5 to $100 million. Beyond providing financial support, Lightsmith actively engages with invested companies, aiding in international expansion and emphasizing sustainability and climate resilience measures. The fund's blended finance strategy incorporates diverse investors, including institutions, philanthropic organizations, and government entities to support climate resilience and adaptation solutions.
Importance of Climate 2.0 Approach in Food Supply Chains and Resilience
Enhancing the availability, reliability, and security of food supply while reducing greenhouse gas emissions and energy intensity is crucial. Technology deployment in supply chains increases resiliency to climate change shocks, as seen in Chennai, India's floods and water scarcity due to drought. By utilizing technology and innovative approaches, disruptions like floods and droughts do not hinder food distribution, exemplified during COVID with seamless food deliveries and security enhancements.
Emerging Technologies Addressing Climate Change Impacts on Supply Chain and Adaptation
Climate change significantly impacts the supply chain through events like wildfires and extreme weather, redefining logistics and transportation needs. Technologies integrating weather analytics and predictive analysis recommend efficient transport modes for perishable goods during crises. Companies now incorporate resilient strategies like dynamic rerouting and choosing transport modes smartly to combat challenges like climate-related disasters and physical risk, reshaping the supply chain landscape.
This episode continues our series on adaptation, and features Jay Koh who co-founded the Lightsmith Group, the first growth private equity firm focused on climate adaptation. Jay discusses the firm’s investment strategy, the sectors his firm invests in and their investment criteria process. He also shares thoughts on the role of public policy and offers career advice.
Climate Rising Host: Professor Mike Toffel, Faculty Chair, Business & Environment Initiative
Guests: Jay Koh, Co-Founder and Managing Director of the Lightsmith Group
