The summer of 2024 keeps on breaking temperature records.

Globally, July 2024 was the second hottest July in history after July 2023, according to a Thursday report by the European Union’s Copernicus Climate Change Service.

Global averages take into consideration the entire world's temperature, including the Southern Hemisphere, where winter occurs between June and September.

This July was cooler than last year's by just approximately 1 degree Farenheit (0.04 degrees Celsius), yet it was the hottest month on record for some regions, including the Western U.S. and Canada, as well as most of Africa, the Middle East and Asia.

Having a slightly less warm July than last year is no cause for celebration. July 2024 was the first time in 13 months that average temperatures didn't beat the previous historical record for that month and it hosted the two hottest days on record globally. 

“We are not done with temperature records causing heatwaves … We know this long-term warming trend can be, with a very high level of confidence, related to the human impact on climate,” said Julien Nicolas, a climate researcher with Copernicus, to Reuters.

July 2024 was on average 2.7 degrees Fahrenheit (1.48 degrees Celsius) higher than pre-industrial levels on a global basis.

In California, this July was the hottest month on record, with an average statewide temperature of 81.5 degrees Fahrenheit (27.5 degrees Celsius), beating the previous record of 79.8 degrees Fahrenheit (26.5 degrees Celius) set in July 2021, the San Francisco Chronicle reports.

Death Valley, known for holding the record for the hottest place on earth, recorded its hottest month in history during July. The Death Valley National Park registered a 24-hour average of 108.5 degrees Fahrenheit (42.5 degrees Celsius) and a daily peak average of 121.9 degrees Fahrenheit (50 degrees Celsius).

Needles, a small town in California, dethroned Phoenix, Arizona as the hottest urban center in the country, with an average monthly temperature of 103.2 degrees Fahrenheit (39.5 degrees Celsius).

Read Also: Scorching Heat Breaks Records, But 2024 Election Outcome May Hold Worker Protections Hostage

Rising Temperatures: Stocks To Watch

The rising temperatures present an opportunity for investors, who might look at companies and sectors expected to grow in an increasingly warm Earth.

Companies producing air-conditioning units are first in line. Rising temperatures will increase the need for air conditioning. Companies in this sector may also see an increase in sales due to worsening air quality in major urban centers.

Valued at $138 billion in 2022, the air-conditioner market is expected to grow to $253 billion by 2031, according to a report by SkyQuest. This includes an average yearly growth of almost 7% between 2024 and 2031.

In North America, the total market for air-conditioners currently stands at $24.6 billion and is expected to reach $35.6 billion in 2030, as per a GrandView Research report.

• Carrier Global Corp CARR shares recovered this week from the recent stock sell-off and are up 17% in the last six months.
• Whirlpool Corporation WHR is one of the largest producers of air-conditioners. Its shares have underperformed the market in recent periods although the company leads about 25% of the home appliance market in the U.S.
  In June, German appliance maker Bosch revealed interest in acquiring Whirlpool, though a bid has not been confirmed. The company is down 10.7% on the month.
• Emerson Electric Co EMR is trading at a discount. The company recovered 4.7% on Thursday after experiencing a 10.9% drop since August began.

Companies producing weather insulation for residential and commercial buildings also stand to grow from rising temperatures.

Some of the largest public companies in this business include Owens Corning OC, TopBuild Corp BLD and Beacon Roofing Supply Inc BECN.

An indirect consequence of global warming is a shift in consumer preferences towards non-emitting sources of energy, as greenhouse gas emissions from fossil fuels represent some of the largest contributors to global warming.

There are several ETFs following the green energy sector.

• iShares Global Clean Energy ETF ICLN has performed poorly since January, down over 9% year-to-date.
• First Trust NASDAQ Cln Edge Smart Grid Infra Ix Fd GRID yielded much better performance and is up 9.5% since January.
• Invesco Solar ETF TAN is down 22.8% since January.

Individual companies in the clean energy sector have performed better in recent times than some of its ETFs.

• First Solar Inc FSLR is up 48.7% in the last six months.
• GE Vernova Inc GEV, a recent spin-off from General Electric, went public in March and its stock is up 34% since then.
• Constellation Energy Corp CEG has been one of the best performers in the clean energy sector, up 61% since January.

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This image was created using the artificial intelligence Midjourney.