2024 marked an unprecedented year of environmental disruption, with six of the nine planetary boundaries now breached. It also stood out as the hottest year ever recorded, with global temperatures exceeding the critical 1.5°C threshold.

These breaches signal increasing stress on Earth’s ecosystems and raise the risk of triggering irreversible tipping points. The planet’s resilience to human-made impacts is declining, and urgent action is required.

Despite these challenges, promising progress continues across sectors with high mitigation potential. Renewable energy adoption surpassed growth projections, and new investment opportunities are emerging in areas capable of pushing planetary boundaries back within safe operating zones.

The investment case is clear: the cost of inaction exceeds the investment needed by a factor of 4.1x. Between 2014 and 2023, climate-related damages cost the global economy USD 2 trillion. Under a 3°C warming scenario, annual losses could reach up to USD 38 trillion by 2049, more than twice the European Union’s GDP in 2023.

Yet, current investment levels are uneven and inadequate. Particularly in high-impact sectors such as agriculture, sustainable food and biodiversity restoration, which offer strong returns while directly contributing to a stable, low-carbon economy.

At Summa, we view planetary boundaries as a guiding framework for sustainable growth. They are integral to how we assess risk, shape our portfolio and define long-term value creation. We are embedding planetary boundary assessments into our investment process, enabling portfolio-wide risk mitigation and impact alignment.

This approach helps us identify companies that can succeed in a future economy shaped by planetary boundaries. At a macro scale, the investment potential across our focus areas is substantial and can unlock economic value that extends well beyond individual transactions.

To learn more about how we work with our portfolio companies, including Nutris, Holdbart, Oda and NG Group – who have a combined 1.5 million tCO₂e (metric tons of CO₂ equivalent) in avoided emissions – read our latest report ‘Planetary boundaries’.