Climate Changes Economic Themes

Reflecting upon our learnings from our first year as a fund, Redwood Grove shares our central thesis: while traditional factors like business fundamentals and management are crucial, climate change remains a significant, yet unpriced risk in public equity markets. The letter delves into our portfolio themes, highlighting investments in companies poised for the transition to a low carbon economy.

Download PDF

Related posts

Opportunity in an Era of Policy Volatility

Rapidly shifting federal policy has driven market volatility that reflects narrative churn more than underlying fundamentals. Redwood Grove views this environment as a source of opportunity, focusing on companies positioned to benefit from structural change while underwriting long-term climate risk rather than short-term noise.

January 27, 2026

Data Centers, Electricity, and Climate

Our Q3 2025 Investor Letter explores how the rapid expansion of AI and data centers is reshaping global energy demand and creating long-term opportunities in clean power. We discuss Redwood Grove Capital’s positioning to capture this trend through disciplined investments in renewable and energy-efficiency companies aligned with climate resilience and sustainable growth.

October 27, 2025

Coffee and Climate

Redwood Grove Capital’s Q2 letter highlights how climate change is disrupting global coffee production, with rising temperatures, drought, and crop disease impacting supply and prices. These challenges illustrate a broader theme: companies and systems must adapt—not just mitigate—to a changing climate.

July 30, 2025