Climate Responsibility



The responsibility of addressing climate change is not limited to the public sector. Climate responsibility extends to substate and non-state actors. The private sector also has a significant role in addressing climate change and taking action to mitigate its impacts. I witnessed the increasing trend of climate action by private companies and funds recently on a Harvard CEEPIC trek to Silicon Valley in California. We met tech companies, venture funds at different stages, and investment bankers on this visit.  
A common theme in the discussions we had was the collective focus on integrating climate change and environmental issues into financial decision-making. They incorporate environmental, social, and governance (ESG) considerations into their investment decision-making processes, ensuring that their portfolio companies adhere to sustainable practices and contribute to climate solutions.  

Climate venture funds such as “Lowercarbon” and “Activate Capital” are seeking out startups with disruptive technologies and business models that have the potential to significantly reduce greenhouse gas emissions and drive sustainable practices. These funds are supporting entrepreneurs who are challenging traditional industries and accelerating the adoption of clean technologies, which can lead to transformative changes in the energy, transportation, agriculture, and manufacturing sectors. These funds also offer expertise, mentorship, and access to networks, helping startups navigate regulatory frameworks, refine their business models, and scale their operations.  
Another common theme on this visit was the optimism caused by recent government actions such as IRA and Ukraine war in Europe creating tailwinds for these sectors. 

“Nomura Greentech” an investment bank informed us that the IRA has caused a shifting of manufacturing that was done overseas to the USA, creating additional opportunities. Mr. Arjun Saddhu from “Intersect Power” informed us that IRA is helping various points of their supply chain. The investment tax credits under the act are boosting the solar power sector. Many companies expressed that the Ukraine war has renewed focus in the EU on solar and wind energy. These companies and funds have the potential to unlock new opportunities, accelerate technological advancements, and drive the transition to a more sustainable and resilient future. 

Jyoti Sharma

Climate change

The energy sector is
central of efforts to
combat climate change

Climate change

In a hotter world energy
efficiency is more
important than ever