Whether you are a climate change embracer or denier (and please, I don’t need to know), there is no disputing this has been one hot summer. And excessive heat is dangerous, being responsible for 134 deaths per year on average according to NOAA.*
As an investor is there a way to profit from high temperatures?
Here is a list of companies or sectors that may benefit from your sweaty discomfort.
- Arctic shipping companies transporting goods between East Asia and Western Europe are benefitting from easier travel thanks to global warming. Traveling with the help of icebreakers through previously unusable norther routes saves money by not needing to sail through the Indian Ocean.
- Companies selling air conditioners, air conditioning parts, and services related to installing and repairing A/C.
- Industries investing in solutions to global warming. This would include flooding mitigation, renewable energy, agriculture firms engineering heat and bug resistant plants, and industries that focus on reclaiming and recycling large goods.
- What about building a better sunscreen? Or SPF shirts, hats, sunglasses or other items to help people survive the sun’s increasingly harsh effects as our ozone deplete? **
This is not to suggest you celebrate global warming by trying to make a buck, but with a little research, you may be able to support companies who are working towards solutions to the problem.