Market
Memos from Howard Marks: Ruminating on Asset AllocationThe path to Net Zero is about much more than divesting carbon-emitting businesses.
By incentivizing behavior, credible public policy can provide the foundation for the transition to net zero—and governments are stepping up their efforts. Across industries, business transformation will require a rapid move away from fossil fuels (and toward renewable energy sources), the decarbonization of existing production processes, the electrification of industries, and the installation of energy-efficient technologies.
Helping businesses transform is a value-creation opportunity. The need for new products and solutions to reduce carbon emissions is creating a compelling business proposition for providers of capital—one that generates a positive impact on a company’s activity and leads to measurable outcomes in the real world. Today, companies can work with partners with substantial operating expertise to implement—and build out—existing, commercially scalable technologies that can put them on a path to net zero.