About episode
If you believe the climate transition is creating trillions of dollars of opportunity, then backing public companies whose business models are centered on that transition and whose growth will be driven by it seems an almost obvious approach.
That’s exactly what Heather Beatty and ScopeFour Capital are doing, and I was excited to hear what they’re learning and the opportunities they see.
In this conversation, we talk about Heather’s background and how she came to found ScopeFour after decades in institutional investing.
We talk about their approach, their portfolio, and the opportunities they’re excited about. We talk about the election, how it’s influencing their investing in the short term, and the potential long-term implications. We talk about green hushing and the resilience of corporate climate action, and much more. Lots to think about in this one. Here we go.
In today’s episode, we cover:
- [2:45] Heather’s background & what got her interested in climate
- [5:50] The founding of ScopeFour
- [7:54] Why aren’t we investing by following science & research
- [9:48] ScopeFour & what they’re aiming to do
- [11:32] What’s unique about ScopeFour
- [13:49] What to say to naysayers of climate investing
- [15:22] Specific examples of investments ScopeFour has made
- [17:06] Exciting spaces and opportunities right now for climate investing
- [18:45] What can be done to encourage faster adoption of climate tech
- [21:08] Tying emissions reductions to the size of an opportunity
- [23:24] Climate risk as a factor in investment decisions
- [24:58] The short-term & long term impacts of the upcoming election
- [29:35] What we know about Kamala Harris’ interest in climate
Heather’s background & what got her interested in climate
Heather has a traditional background in institutional investment, having spent the past 20 years in the field. Around five years ago, clients began asking how she was approaching the energy transition from both risk and return perspectives. While working at Siegel, she helped launch a climate council to clarify the company’s approach to environmental impact, climate risk, and decarbonization opportunities. Personally, her interest in climate was fueled by her travels, where she witnessed environmental issues firsthand, and by reading influential books like Sapiens, The Sixth Extinction, and Garbology. These experiences deepened her understanding of climate change, leading her to see it as an urgent issue that goes beyond weather patterns to include supply chains and infrastructure. To bridge investment and climate action, she pursued an Executive Master’s in Environmental Management at Duke and was inspired by Project Drawdown’s science-based climate solutions. This ultimately led her to found ScopeFour Capital, focusing on investing in public markets to address climate change.
ScopeFour & what they’re aiming to do
ScopeFour Capital creates investment portfolios focused on public companies that scale climate solutions. Heather views climate action as a continuum, where capital can be allocated to philanthropic efforts, innovation like carbon capture, or to public markets, where economically viable solutions can be scaled for significant impact. ScopeFour’s portfolios have a global focus and use a proprietary taxonomy to identify companies with meaningful climate solutions, particularly in climate mitigation and adaptation. Unlike typical ESG funds or major indices like the S&P 500, ScopeFour invests in companies whose business models are specifically geared toward reducing emissions, such as those involved in utility-scale solar, wind, or energy-efficient building technologies, making their portfolio unique and uncorrelated to traditional markets.
Exciting spaces and opportunities right now for climate investing
Heather emphasizes that ScopeFour Capital focuses on key areas of decarbonization, often referred to as the “picks and shovels” of the transition. She highlights utility-scale solar and onshore wind as exciting opportunities, particularly after these sectors faced setbacks earlier in the year, allowing them to invest in high-quality companies. Additionally, ScopeFour is increasingly focused on water management and treatment, driven by growing concerns over water scarcity and its critical role in industrial and agricultural sectors. This area represents a significant part of their portfolio as they see rising demand for potable water globally.
What we know about Kamala Harris’ interest in climate
Kamala Harris may take an even more pro-climate stance than President Biden, which is important for voters who prioritize climate issues. Harris attended COP28 as the highest-ranking U.S. official, strongly advocating for the Inflation Reduction Act (IRA). Her climate initiatives extend back to her time as San Francisco DA, where she established an environmental justice unit. As a senator, she co-sponsored the Green New Deal and has organized international efforts to address climate change. If she assumes a more prominent leadership role, Heather suggests Harris is likely to continue and potentially strengthen the U.S. climate agenda.
Resources Mentioned
- ScopeFour Capital
- Project Drawdown
- Invested in Climate: Every job is a climate job with Project Drawdown, Ep #37
- Enphase
- ABB
- Nexans
Connect with Heather Beatty
- Connect with Heather on LinkedIn
Connect with Jason Rissman
Keep up with Invested In Climate
- Sign up for our Newsletter
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