Periods of rapid and conflicting policy signals can distort investor perception, slowing decision-making and amplifying market volatility driven more by headlines than fundamentals. While markets have become quicker to dismiss abrupt federal policy shifts, this reflex risks overlooking meaningful structural changes occurring beneath the surface. Historically, policy instability has often created durable opportunities for companies that execute where government capacity falls short, a pattern reinforced across disaster response and infrastructure outsourcing. Redwood Grove continues to focus on long-term fundamentals—particularly climate risk—by underwriting future realities rather than reacting to short-term noise.
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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.
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.
2025 Climate Impact Report
This year’s report examines climate commitments within our portfolio and across the broader market—highlighting which companies are making real progress toward their goals and which are falling short. Notably, 2024 marked the first year in which more companies withdrew from Net Zero commitments than joined them, signaling a meaningful shift in the climate disclosure landscape. We also take a closer look at Big Tech—once a leader in corporate decarbonization—as it increasingly emerges as a high-emissions sector requiring greater scrutiny.
