Why Industry 4.0 is core to our investment thesis

Mazarine Climate's investment thesis around climate adaptation is clear: climate-change-induced water risk is one of the most urgent and investable challenges of our time. Rising sea levels, intensifying floods, worsening droughts, and water quality degradation are reshaping economies, communities, and industries worldwide. To address this, we’ve built our strategy on the Industry 4.0 toolbox — the suite of technologies transforming how data, machines, and people interact — applied through the lens of water risk.

Industry 4.0, Through the Lens of Water Risk

Industry 4.0 refers to the convergence of advanced technologies — from IoT sensors and satellite earth observation to AI, digital twins, edge computing, and autonomous systems — into interconnected, intelligent networks. In the context of water risk, these tools are no longer theoretical. IoT-enabled hydrological sensors can track river levels and water quality in real time. Satellite and drone imagery, paired with AI analytics, can detect early signs of drought stress or flood vulnerability across entire watersheds. Digital twins of dams, pipelines, or stormwater systems can simulate climate scenarios to guide targeted upgrades. Together, these technologies make it possible to monitor, predict, and respond to water-related threats with unprecedented speed and precision.

Practical Examples in Action

Imagine a railway operator using predictive rainfall analytics and real-time soil moisture data to identify flood-prone track segments before they fail. A port authority could integrate IoT-enabled tide gauges and storm surge models to proactively adjust operations and protect coastal infrastructure during extreme weather events. In the FIRE sector, insurers could leverage property-specific flood simulations and AI-driven damage forecasts to refine underwriting and accelerate post-event claims processing. Power generation operators — from hydro to thermal plants — could deploy digital twins to simulate water availability under different climate scenarios, enabling optimized output while safeguarding cooling systems and critical assets. Across each of these sectors, Industry 4.0 transforms water risk from a reactive, damage-control challenge into a proactive, precision-managed operation.

Why This is the Most Compelling Thesis in the Water Risk Vertical of CAT

Within Climate Adaptation Technology (CAT), few verticals match the scale, urgency, and investability of water risk. The need is universal — every sector, geography, and asset class depends on water security — and the costs of inaction are staggering. The market for water-risk solutions is not only growing but diversifying, with strong adoption drivers in insurance, finance, infrastructure, and industry. What makes our thesis compelling is that Industry 4.0 tools are inherently scalable, interoperable, and capable of delivering measurable ROI while reducing vulnerability. By focusing on these technologies, we’re not just funding climate adaptation; we’re funding solutions that can be deployed quickly, integrated easily, and expanded globally.

From Theory to Scalable Impact

Mazarine Climate believes the future of managing water risk lies in precision — not generic, one-size-fits-all interventions, but targeted actions informed by rich, real-time data. Industry 4.0 delivers exactly that. By embedding these capabilities into the operations of owners and operators, our portfolio companies can support them anticipate shocks, reduce losses, and sustain performance in a more volatile climate.

Mazarine Climate strongly feels that our investments are designed to ensure that adaptation is not a privilege for the few, but a capability accessible to all — powered by technology that turns water risk into a manageable, predictable variable rather than an uncontrollable threat.