The business of staying cool: Five stocks that could benefit from a warming world

As record-breaking temperatures become more common around the world, investors are increasingly looking at the companies positioned to benefit from a hotter climate.

With households, businesses and governments investing to cope with more intense heatwaves, investors may find opportunities in companies providing the products and services needed to adapt to changing conditions.

Angeline Ong, Senior Analyst at IG commented: “We’re moving beyond the age of simple thermal comfort and into an era where cooling is a serious business and investment opportunity. You can already see it in places like Dubai and Singapore, where the response to a hotter world has not been denial, but adaptation, through air conditioning, cooling infrastructure, and energy systems designed to help people and businesses keep functioning as temperatures rise.

“For investors, that changes the frame entirely. Heat resilience is no longer just a lifestyle issue; it’s becoming a financial theme. As the planet warms, the companies that help people stay cool, keep the lights on, and protect assets from climate impact could become some of the most interesting names in the market.”

Here, Angeline Ong shares five companies for investors to consider as being well-placed to profit from a warming world:

1. Carrier Global (NYSE: CARR) This company makes air conditioners and other cooling systems, so when it gets hotter, more people and businesses want its products.
2. Lowe’s (NYSE: LOW) Lowe’s stores sell stuff people buy to deal with heat, like fans, cooling units, and repair supplies after bad weather.
3. Generac Holdings (NYSE: GNRC) This company makes backup generators. When heatwaves and storms strain the power grid, more people may want backup power.
4. Linde (NYSE: LIN) An industrial gas giant that sells industrial gases and technology used in sectors that are being pushed to decarbonize, electrify, and improve efficiency, so the climate transition can increase demand for its products and services.
5. Rentokil Initial (NYSE: RTO) A pest-control company that can benefit as warmer weather lengthens pest seasons. A rise in insect and rodent activity can drive more call-outs, more service contracts, and stronger demand for pest-control products and services.