Investing in the green economy1Investing in the green economy 2025Navigating volatility and disruptionAuthors Lily Dai Senior Research Lead, Sustainable Investment ResearchLee Clements Director, Applied Sustainable Investment ResearchAlan Meng Research Lead, Sustainable Investment ResearchBeth Schuck Research Analyst, Sustainable Investment ResearchKieran Brophy Research Lead, Sustainable Investment ResearchJaakko Kooroshy Global Head of Sustainable Investment ResearchContents Executive summary .............................................................................................................................3Introduction ...........................................................................................................................................4Section 1: State of the green economy ......................................................................................... 5Section 2: Investment characteristics of the green economy ................................................ 8Section 3: Climate adaptation solutions – An emerging industry? .................................... 17Section 4: Investment strategies incorporating the green economy .................................25Section 5: Composition of the green economy ........................................................................31Appendix 1: GRCS micro sectors with contribution to climate change adaptation ........56Appendix 2: Full assessment of companies providing adaptation solutions ..................57We used various LSEG proprietary sustainable investment data in our analysis, including Green Revenues data, climate data, green bonds data, Lipper fund flows and holdings, commodities and FTSE Russell indices.Investing in the green economy3Executive summaryLSEG data shows that revenues from green products and servic...