3 Climate-Related Stocks to Watch Beyond Solar and Wind Energy

Climate investing extends beyond solar panels and wind turbines. As rising temperatures, floods, droughts, and severe storms increase pressure on communities and infrastructure, companies providing cooling systems, water-management technology, and disaster-recovery services may benefit from growing demand.
The article highlights three companies: Carrier Global ($CARR), Xylem ($XYL), and AECOM ($ACM).
**Carrier Global ($CARR): Cooling Buildings as Temperatures Rise**
Carrier manufactures heating, ventilation, and air-conditioning systems for residential and commercial customers, as well as temperature-control equipment for transportation and other industries.
In Q2 2026, net sales increased 4% year over year to $6.35 billion. Orders rose approximately 40%, excluding two businesses the company is exiting, while commercial HVAC orders climbed about 65%. Orders tied to AI data centers more than quadrupled.
However, operating profit fell 9% to $825 million as higher input costs and product-mix changes pressured margins. Higher interest rates and a difficult housing market may also delay construction and equipment replacement.
**Xylem ($XYL): Water Infrastructure and Management**
Xylem supplies pumps, water-treatment equipment, monitoring systems, and technologies that help communities and businesses manage water resources.
In Q2 2026, orders jumped 42% to approximately $3.1 billion. Adjusted earnings per share increased 16% to $1.46, while revenue rose 2% year over year to $2.3 billion.
The main risk is project timing. Large water infrastructure projects can take years to complete, and delays or cancellations may prevent strong order growth from translating quickly into revenue.
**AECOM ($ACM): Infrastructure and Disaster Recovery**
AECOM provides engineering, consulting, and project-management services for transportation systems, water facilities, coastal protection, and disaster recovery.
In Q3 fiscal 2026, its project backlog increased 13% to a record level, and the company secured approximately $4.2 billion in new project wins.
However, AECOM recorded a $337 million pre-tax charge related to project delays and higher costs, resulting in an operating loss of $76 million for the quarter. Government spending priorities and economic conditions can also affect future contracts.
**The Investment Perspective**
These companies are not pure climate-change investments. Carrier also benefits from routine equipment replacement and construction, Xylem serves broader water-management needs, and AECOM works across many types of infrastructure projects.
Their businesses offer exposure to climate adaptation through cooling, water infrastructure, and disaster recovery. However, operational challenges, project delays, and uncertain spending decisions remain important risks. There is no guarantee that growing demand will translate into strong stock-market returns.