Climate Adaptation Emerges as a Durable Investment Theme

The featured report by Janus Henderson Investors, this report assesses how rising physical climate risks are translating into a long-duration market opportunity focused on adaptation rather than mitigation.

• Demand for adaptation solutions is accelerating as climate-related losses average roughly $140bn annually in the U.S., supported by infrastructure spending despite fragmented policy.

• Investment exposure spans water infrastructure, engineering, materials, HVAC, and insurance—sectors focused on moving water, hardening assets, and pricing risk rather than reducing emissions.

• While no pure-play exists, firms with specialised capabilities and scale may benefit from decades of infrastructure underinvestment and recurring resilience needs.

How can portfolios capture this structurally growing but underappreciated theme? The full report explores where adaptation is becoming financially material.