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Social Impact
Social Impact
Energy Innovation Opportunity: Social Impact Grant
Who is offering a social impact grant for energy innovation? Centrica
How many grants will be funded? Up to 10 grants can be secured between £100,000 to £500,000
The name of the grant program: Energy for Tomorrow
What targets should the energy innovators meet?
- address climate change
- lower energy bills
- deliver “real impact to people and communities”
Current News | Centrica launches social impact grant scheme to support energy innovation
3 Opportunities for Sustainable Business Models post COVID
- ADAPT. Business Models adapt as the World Rethinks What Matters. Look to IKEA and H&M in 2018 that saw economics not as linear, but circular and began including service programs like resale and recycling.
- WE ARE IN THIS TOGETHER. We’re all thinking of society, of community, of interconnectivity. Information passing at exponential speeds includes society. Creates Opportunity for companies to demonstrate commitment to the health, safety and prosperity of all stakeholders by addressing inequality in the business model.
- SUPPLY CHAINS MATTER. Invest in supply chain sustainability. Protect our societies, our economies and our businesses by ensuring stronger and more resilient value supply chain ecosystems.
COVID Crisis Leading to Greater Corporate Scrutiny.
Thought ESG, social impact, social responsibility, social good were important before COVID? Doing good could be more important now, after COVID, according two market analysts.
Why is scrutiny of whether companies treated their employees, supply chain and society well matter more? Because companies face greater scrutiny during the crisis
How does this also help drive profits higher for companies? Because employees who are treated well are more loyal, and perform 21% higher according to Gallup.
How do layoffs and furloughs impact employees?
- 41% decline in job satisfaction
- 36% decline in organizational commitment
- 20% decline in job performance
- replacing an employee costs a company on average 2x the previous employees annual salary
Morgan Stanley | Why the Coronavirus puts a new lens on ESG investing
Industry TREND. Women Led Breweries.
What: Pink Boots Collaboration Brew Day
Where: International Organization promoting women in the beer industry.
What does it mean for Austin’s breweries? A release of 6 women created brews for Pink Boots’ Brew Day/
Live Oak Brewing: Pink Pils!, an all-American pilsner available in six-pack cans
‒ Circle Brewing: Pink Velvet Collaboration IPA, available in six-pack cans
‒ St. Elmo Brewing: Caroline Hoppy Pale Ale, named after the deputy director of the Texas Craft Brewers Guild and available in 16 oz. four-packs
‒ Central District Brewing: Be a Lady, They Said Hazy Session IPA, available in 16 oz. four-packs
‒ Blue Owl Brewing: Pink Moon Boots Sour Dry-Hopped IPA, available for growler fills
‒ Bluebonnet Beer Co.: Blushing Bines IPA, available in 32 oz. crowlers or 32 or 64 oz. growlers
Austin 360 | Austin brewery’s Lizzo-inspired beer is ‘Good As Hell’
Is clean energy & smart infrastructure our economic salvation?
What does History says? Yes, infrastructure investments help the economy? Just like the works projects during the Great Depression
Can these investments protect us? Yes.
- We can protect our energy resiliency by employing workers, investing in American technology, and investing in technology that protects us against future volatility from international energy markets.
- Just like in 2008 during the Great recession, the Smart Grid Investment Program leveraged more than $9.5 billion in industry capital to strengthen cybersecurity, reduce operating costs, and develop new energy management innovation.
- Just look at the ROI when 2008 stimulus helped auto manufacturers in 2020, those manufacturers adapted facilities to make ventilators
3 Ways Investors Will Reward Companies in the new COVID world
Investors will reward companies that display acts of charity, compassion, and creative generosity.
Why do acts of charity, compassion, and creative generosity matter? mutual, index, and exchange-traded funds as well as institutional and individual investors measure socially responsible investing criteria
What does socially responsible investing mean? a focus on Environmental, Social and Governance criteria
How does that translate in the real world?
- “good citizenship” by companies
- such as manufacturers deploy excess capacity for ventilators, masks, and face shields, tech giants offer software for healthcare monitoring and data analysis and CEO’s cut their salaries
- or employers who placed their furloughed employees at other companies like Hilton did by placing their furloughed employees at Amazon
Tales of a Texas Business. Mask Maker.
A North Texas company that manufactures medical masks isn’t manufacturing 24/7. Some of the reasons why:
- American buyers wanted cheaper masks from China
- Supply chain is heavily tilted to Chinese products
- “If y’all don’t care about me in good times when everybody’s OK, how am I going to be there when you need me?” – the business owner
Connecting the Dots. COVID + Corporate Social Responsibility
Background: Earlier this year BlackRock’s Larry Flint called for greater sustainable business practices.
This letter has been updated for a COVID world in which he calls for:
- supporting our shared humanity
- higher value for long-term thinking
- strong sense of purpose
- “we can only serve our full set of stakeholders – from our employees to the communities where we operate – if we continue to make a positive contribution to society”
4 Takeaways for business:
- Companies that break with the doctrine of shareholder primacy, they avoid over-leveraging their balance sheets
- Invest in your employees, including health care and sick pay, & benefit from a more loyal and engaged workforce
- Treat your suppliers like partners, to experience fewer supply disruptions
- Do good and be rewarded by consumers
How is this playing out in a COVID world?
- 1 in 3 consumers are punishing companies that reacted poorly in the crisis
- corporate leadership should adopt a 360-degree view and become more attuned to their employees, value chains, and wider society
- Otherwise, you’re Amazon and hailed for a $100 million fund for climate change in February & then in March criticized for staff walk outs over inadequate safety measures
- LVMH hailed for making hand sanitizer at its factories & then criticized for taking government funds
Fortune | The coronavirus pandemic may be a turning point for responsible business
3 Reasons Equality Is Good for Business
- Improved innovation — Cindy Provin, GM, nCipher Security
- Diversity is not a buzzword; it creates monetary value –Anying Li, senior data scientist, Exabeam
- Problem solving in new & creative ways –Anying Li, senior data scientist, Exabeam’
SC Media | Help SC honor Women and Diversity in Cybersecurity with your recommendations
Socially Responsible Business + COVID = Resiliency
Background: In August 2019 the Business Roundtable announced a change in how business should think of itself in the US
What shift occurred in business? A shift in corporate values to evolve beyond financial performance to be more inclusive of broader, pressing societal interests… a sense of community in its employees and the communities in which it operates
What are examples of how companies have adopted this new model?
- The 5-bottom-line business model that supports and sustains our people, planet, community, business, and brands
- A focus on diversity in the boardroom and ESG (environmental, social, governance) initiatives
- Offering employees 5 days that they could use to volunteer and benefit the community
- Companies adopting certain charities
- Philosophical shift that “Management and the board have an obligation to be stewards of what is in the best interest of people and society as well as the environment.”
Is this change in corporate values to stay? ” I believe this is the new norm, as it should be.”
What is Responsible Procurement of Natural Gas?
Who developed this policy? Quebec’s power utility
What is the policy goal? “to promote business relations with proactive and responsible gas producers who are committed to being transparent and have demonstrated leadership in implementing ESG best practices.”
What are benchmarks for green-gas?
- producers and distributors comply with performance benchmarks for public disclosure
- labor standards
- finance
- field practices
- environment safeguards
- relations with communities and native tribes
Natural Gas Intel | Calgary’s 7G Secures ‘Responsible’ Natural Gas Supply Deal with Energir
Auto Insurers Issue Refunds In Response to COVID
Why?
During the pandemic driving mileage has decreased 35% – 50% causing a sharp decline in car accidents.
Which auto insurers?
Allstate:
- $600 million in refunds over the next 2 months for 18 million customer policies
- Allowing customers to delay 2 payments without penalty
- Opening Identity Protection products to all U.S. residents as cybercrime increases due to increased virtual meetings
American Family Insurance
- $50 rebate per car for more than 2 million customers
- Suspending late fees and cancellations
USAA, Progressive, & Farmers
extending grace periods, suspending late fees & cancellations, and allowing payment deferrals
Triple Pundit | Auto Insurers Issue Customer Refunds: ‘This is About Fairness’
NY Residents to Decide on $3 Billion Climate Action Bond Issue
Restore Mother Nature Bond Act and the Environmental Bond Act of 2020
- proposed by Governor Cuomo in January
- signed as part of the budget legislation for FY 2020-21 on April 3
- likely the only proposition to appear on the New York 2020 ballot
Where would funds be distributed?
- $1 billion for flood risk reduction, coastal rehabilitation, shoreline restoration, & ecological restoration projects
- $700 million for projects designed to mitigate the impacts of climate change
- $550 million for land conservation and recreation plans, programs, and projects and fish hatcheries
- $550 million for projects related to wastewater, sewage, and septic infrastructure, lead service line replacement, riparian buffers, stormwater runoff reduction, agricultural nutrient runoff reduction, and addressing harmful algal blooms
Ballotpedia News | New Yorkers will vote on a $3 billion bond issue designed to address environment and climate change issues in November
COVID Expected to Accelerate Environmental, Social, Governance (ESG) Investments
How has COVID increased ESG visibility?
Social – Companies doing right by their employees, customers, and communities in this most trying of times will be noticed, remembered, and rewarded with increased business.
Environmental – The impact of humans on the environment has been demonstrated the with countless images showing the recent decrease in emissions. This new evidence is providing a new perspective on climate action.
An opportunity for investors
- Current ESG measurements are imperfect providing an opportunity for investors to overlay their own analysis to discover potential opportunity and risk.
- ESG is not fully reflected in stock prices. This is likely to change, presenting an opportunity for active stock pickers now.
- ESG is here to stay. It results in changes to consumption preferences, which in turn affect revenue and operating margins. Anticipating changes to ESG scores will provide a profit opportunity.
nasdaq.com | How a global pandemic could accelerate the ESG imperative
JPMorgan Begins Mandatory Diversity & Inclusion (D&I) Training
Why?
A December New York Times article detailed customer and employee racial discrimination at an Arizona branch which was backed up by an audio recording.
What was the JPMorgan response?
The bank admitted D&I failures from the report and issued this statement: “We are all the keepers of our culture and we are committed to ensuring that ours is one where all employees and customers are treated equally and fairly, and where all of us receive the opportunity and mutual respect we deserve,”
Who must participate in the training?
all 257,000 employees and managers will receive special training
CNBC | JPMorgan starts mandatory diversity training for managers after discrimination allegations
World Health Organization (WHO) & Global Citizen partner for Virtual COVID Benefit
One World: Together At Home
The live event will be televised and streamed globally on April 18, 2020. Featured artists include but are not limited to Lizzo, Lady Gaga, Eddie Vedder, Paul McCartney, and Stevie Wonder.
How will the event support the COVID response?
Pledges from supporters and corporate partners go to the COVID-19 Solidarity Response Fund and local/regional charities that are providing food, shelter, and healthcare where it is most needed.
What does the WHO’s COVID-19 Solidarity Response Fund do?
- track and understand the spread of the virus
- ensure patients get the care they need and frontline workers get essential supplies and information
- accelerate efforts to develop vaccines, tests, and treatments
World Health Organization | WHO and Global Citizen announce: ‘One World: Together at home’ Global Special to support healthcare workers in the fight against the COVID-19 pandemic
Recycled Aluminum: A Future Energy Storage Option?
What happens with renewable energy when the weather does not cooperate?
- Diesel generators are used as a backup but this creates more carbon emissions.
- Power can be stored in batteries but the batteries require rare earth minerals.
Who’s working on a solution?
Swedish energy startup, Azelio uses recycled aluminum to store energy in the form of heat. The company says is its energy storage has a 90% round-trip efficiency.
Curent test sites
- Noor Ouarzazate solar complex in Morocco, a 580-megawatt (MW) power plant
- Abu Dhabi’s Masdar
Triple Pundit | Recycled Aluminum Could Allow for Next-Gen Energy Storage
COVID-19 Won’t Stop BlackRock’s Climate Action
Why still focus on ESG?
Companies performing well on ESG factors have outperformed the rest of the market since the S&P 500 peaked on February 19.
BlackRock motivated to continue climate focus amid pandemic
“The concept of long-term sustainability would suggest that companies that come through this crisis and do well would be exactly the kinds of companies you would look to as role models.”
ESG disclosures BlackRock expects of 2020 investments
- Disclosures aligning with the standards set by the Sustainability Accounting Standards Board (SASB),
- Published climate-related risks, following guidelines from the Task Force on Climate-related Financial Disclosures (TCFD)
- Plans for operations in a scenario where the Paris Agreement’s goal of limiting global warming to less than 2° Celsius is successful.
Triple Pundit | BlackRock Investors Push for Climate Action During Pandemic
2019: The 2nd Biggest Year for Wind Energy
Global wind energy
- up 19% (60.4 gigawatts) in 2019 compared to 2018
- total capacity now 651 GW
- a record 6.1 GW or 10% of new offshore wind farm installations
- Europe saw 30% year-on-year growth in the onshore market
World’s largest wind energy capacity by country
- largest onshore – China & the US
- largest cumulative offshore – UK
- largest in new offshore- China
What needs to happen to reach Paris Agreement Objectives?
installation of 100 GW of wind energy annually over the next decade
Electrek | EGEB: 2019 was the second-biggest year in history for wind power
European Union (EU) to Include Climate Initiatives in Coronavirus Economic Recovery Plan
EU leaders agree that their COVID-19 economic response will be consistent with the union’s “green transition” including the longterm goal of carbon neutrality for all member states by 2050.
Supporters
26 of the 27 EU member states
300 climate change groups
Opponent
Poland argues that the pandemic will make EU targets harder to reach.
Why tackle climate action & the COVID-19 crises simultaneously?
Governments around the world are pouring money into the economy at levels not seen since WWII. Politicians, economists, and climate activists want these measures to be used to accelerate the shift away from coal, oil, and gas.
Reuter’s | EU leaders agree to consider climate in coronavirus recovery plan
What are the Positive & Negative Impacts COVID-19 on the Environment?
Positive climate impact of COVID-19
- 25% reduction in global carbon emissions, or 200 million tons of carbon dioxide
- Nasa satellite images show dramatic decline in pollution levels for China & Italy
- fog pollution lifted in Seattle, New York, Los Angeles, Chicago, Atlanta
- current talk of climate & energy relief in future stimulus package(s)
Negative climate impact of COVID-19
- a reduction in oil prices has historically lead consumers to use it less efficiently while simultaneously depressing EV sales & disincentivizing retrofitting offices/homes
- renewable energy projects are experiencing disruptions in the global supply chain
- businesses find it difficult to secure financing for planned solar, wind, and electric grid projects
- important climate research and gatherings are delayed due to social distancing requirements
- the US and China are reducing environmental supervisions
The New York Times | What the Coronavirus Means for Climate Change
SEC Allows Chevron & Exxon to Dismiss Shareholder Climate Proposal
What did the SEC say?
Chevron Corp. and Exxon Mobil Corp. may reject a shareholder proposal calling for reports on how the companies are addressing climate change goals.
What the shareholder group requests
- information on steps to align with the Paris Agreement goal of net-zero emissions by 2050
- reduction targets
- long-term business plans
The SEC response trend
climate change-related proposals from shareholders are interpreted as micromanaging which in turn leads to companies to be less specific in reporting
Pensions & Investments | Exxon, Chevron given OK to dismiss shareholder climate proposal
COVID-19 – Prisons & Surrounding Communities
Due to confined living situations, experts are highly concerned that outbreaks will prove disastrous for the prison population their surrounding rural communities.
Prison populations that may be impacted by COVID-19
- 2.3 million inmates
- 7,000 jails
Efforts to mitigate prison outbreaks
- early release for prisoners with less than 90 days left
- non-violent inmate release
- 14 senators from both parties have written to the Justice Department requesting inmates 60+ of age, who’ve served more than 2/3 of their sentence receive home release
Triple Pundit | Prisons and Surrounding Communities at Huge Risk to COVID-19
Amid Coronavirus Outbreak Legislators Face Pressure on Climate Action
What policy makers are saying
The stimulus bill is designed to stabilize the economy, not impact climate change.
What green companies & climate activists are saying
- Clean energy faces the same stresses as the travel, restaurant, and entertainment industries.
- There is no conflict in helping green companies with climate-friendly legislation.
- Wind turbines, solar panels, and other renewable technologies cost much less than they did in 2009 when Congress passed the last stimulus package.
- The clean energy sector employs far more people since 2009 and has the potential to employ more.
Advocates for including climate action in a stimulus package
- green energy groups like the Solar Energy Association and the American Wind Energy Association
- environmental groups like the Sierra Club
- several U.S. senators including Bernie Sanders, Elizabeth Warren, and Jay Inslee
- professors from various universities
The Washington Post | As they race to boost the economy, lawmakers encounter push for a greener stimulus
New York Tackles Diversity & Inclusion in the Construction Industry
What’s the issue?
Diversity in the construction industry is a challenge as companies fail to recruit from historically marginalized groups. Despite a labor shortage, there are few minorities & women employed in the industry.
Efforts to change
New York leads the nation at setting high impact Minority and Women-owned Business Enterprises (MWBE) goals. During fiscal year 2018-19, MWBE state contracts reached 29.13%.
What can companies do?
- target a workforce that represents the community in which a business operates
- weave diversity and inclusion strategies into all parts of day-to-day practices
- national corporations can attract candidates through corporate-led programs
Amsterdam News | Fostering diversity in construction starts with community engagement
Google’s Efforts to Tackle COVID-19
Google Maps update
The app shows an alert when someone is searching for a doctor or hospital
The alert
“Call your doctor before visiting if you may have COVID-19. Source: CDC.” populates in a rectangular box near the bottom of the screen.
Additional efforts by Google
The company is prioritizing legitimate information such as symptoms and instructions from the Work Health Organization, while blocking misinformation, speculation, and fraudulent reports.
Phone Arena | New Google Maps feature is designed for those who fear that they have been infected
“Essential Business” Stepping Up on Employee Benefits During COVID-19 Outbreak
Unsung heroes
By spending hours face to face with crowds of people, retail clerks and other hourly employees are providing communities with a sense of normalcy at their own risk.
How are companies stepping up?
In the midst of a global pandemic, companies realize the public health risks are too great to forgo paying people to stay home and be safe.
Which stores are stepping up & how?
- Publix – 80 hours of “emergency pandemic pay” to full-time employees; 2 weeks paid leave for part-time employees
- HEB – hourly pay increased by $2; shortened hours for employees to restock; will pay any employees who get COVID-19
- Target – temporarily increase hourly rate by $2; bonuses from $250 to $1,500 to 20,000 hourly employees; pregnant, high-risk, and employees 65+ receive up to 30 days paid sick leave
- Wal-Mart – will distribute $300 bonuses to employees; quarantined employees receive 2 extra weeks of paid sick leave
Triple Pundit | More Retail, Grocer and Pharmacy Clerks Are Winning Paid Sick Leave
Disability. The Forgotten Aspect of Diversity and Inclusion (D&I)
Stats:
- 90% of companies prioritize diversity
- 4% of companies consider disability as part of D&I programs
- 15% of the global population (1 billion) live with a disability
Why include disability in D&I?
The group can ease talent shortages and add to organizational diversity, driving better decision-making and innovation. As a customer base, the disabled consumer group has $8 billion+ in disposable income.
Steps to improve disability inclusion
- Remove barriers that discourage people with disabilities from applying such as application format, online accessibility, and job description language.
- Create accessible workplaces so employees feel included in and comfortable with their physical working space.
- Embrace disabled customers with media and communication materials.
Harvard Business Review | Do Your D&I Efforts Include People with Disabilities?
Biobased Asphalt. The Path to a Greener Road Construction Industry
The CHAPLIN (Collaboration in aspHalt Applications with LigniN) program
- a meeting of 22 organizations comprising the entire road construction value-chain
- works together to stimulate the development and commercialization of lignin-containing asphalt
What is lignin?
- organic polymers that form key structural materials in plants and some algae
- released during of paper production
- a good substitute for fossil bitumen, a non-sustainable petroleum product
How does it work?
Adding lignin to asphalt can make it 50% greener and reduce the temperature of production and application by 86 °F. Lingin saves around 20% CO2 and 50% of fossil fuels.
Renewable Energy Magazine | Consortium Begins Biobased Asphalt Cooperation Program
Consumers & Beauty Industry Watchdog Spur Social Responsibility During COVID-19 Outbreak
Beauty industry watchdog
The Instagram account, Estée Laundry, has called out large beauty companies for waiting to close physical stores to protect employees, forcing staff to use PTO days during quarantine, or cutting scheduled shifts to avoid paying employees.
Public pressure
Because consumers currently feel let down by employers many are being more vigilant about brands caring for employees during the outbreak.
Positive examples applauded by Estée Laundry
Glossier, Tarte Cosmetics, Sunday Riley
Action Spurred by Estée Laundry
Sephora and Ulta have closed physical stores and committed to paying employees for a period of time.
Glossy | Coronavirus cancel culture: Beauty brands face pressure around social responsibility
Climate Change & Coronavirus
The Green Deal
New legislation requiring companies in the European Union (EU) to help meet the EU’s goal of complete decarbonization by 2050.
What are the economic consequences?
Businesses are concerned about competition from less restrictive countries like the U.S. or China.
The “carbon border tax”
A tax being considered on imports from more-polluting countries
Factor in the Coronavirus
- the Green Deal is no longer the biggest threat to EU businesses
- drastically reducing emissions – China’s carbon emissions down by 25% in the past few weeks as they’ve dealt with the virus
- oil demand is at record lows and the air travel industry has taken a major hit
Forbes | Could Coronavirus Beat Green Deal In Slowing Climate Change?
Construction Industry Looking Toward ESG
Construction industry’s global environmental impact
private and commercial building generates 30% of total greenhouse gas emissions and construction uses 32% of the world’s natural resources
Key motivators
- Public Disclosure. the majority of the S&P’s 500 publicly report ESG standards
- Employees look for it. prospective employees consider ESG credentials when choosing a workplace
- Legislation. an increase of carbon related legislation
- Market Dictating. public contracts and funders require community benefits
Certifications to prove ESG credentials
- BREEAM (Building Research Establishment Environmental Assessment Method)
- WELL Building
- WiredScore’s Wired
JD Supra | ESG and the construction industry
Texas Biotech Testifies on COVID 19 Before House Public Health Committee
Who testified?
Texas Healthcare and Bioscience Institute representing 90 TX biotech companies
TX biotech companies involved in COVID 19 solutions
Liminex, Pure MHC, VGXI, Emergent Technologies, Everlywell
Biotech efforts
- using supercomputers to find vaccines and track the spread of the virus
- investing in research and technology to develop faster test kits, home test kids, and vaccines
- researching coronavirus DNA to better understand it
- collaborating to send a vaccine candidate to FDA human trials
Austin American Statesman | Texas biotech community joins coronavirus fight
Twice the Number of Companies Responsibly Sourcing Cotton
Cotton production
- involves 250 million people
- requires vast amounts of water
- relies on water polluting chemicals
- involves child or forced labor
Good news!
Overall sustainable cotton sourcing has increased from 21% to 25% in the past 2 years, a significant improvement for an industry of this size. During that time period, twice as many companies began engaging in improved practices.
Corporate leaders of the movement
Marks & Spencer, Adidas, Ikea, and H&M
The Sustainability Times | More market leaders are using sustainably produced cotton
Olympics Carbon Positive After 2030
How?
The International Olympics Committee (IOC) will invest in carbon savings to exceed the carbon emissions of host cities.
Current carbon reducing efforts
- The IOC will support Africa’s Great Green Wall project to fight decertification by planting an Olympic Forest.
- As part of Dow’s Leading Blueprint 2025 Sustainability Goal the company is now the official Carbon Partner of the IOC and will reduce Olympic carbon emissions by 4 million tons.
Tokyo 2020
- All electricity for the competition venues and Olympic Village will be from 100% renewable sources.
- The Olympic vehicle fleet will feature carbon zero vehicles including hydrogen cars.
- 65% of waste generated from the Olympics will be either recycled or reused.
Triple Pundit | The Olympics Will Become Carbon Positive From 2030
Stinky Fruit Could Charge Your Cell Phone
This super fruit smells so bad that it is banned on public transportation in Singapore and other public spaces in Asia.
A green energy alternative
Researchers at the University of Sidney found a way to convert durian and jack fruit waste into energy storage.
The durian’s large surface area and high porosity make its scraps perfect for the production of low-density solid materials that can be used in a variety of ways including thermal insulation and cosmetic thickeners.
Charging your phone
The fruit’s biowaste is ideal for high capacity energy storages devices otherwise known as supercapacitors. This means it is very environmentally friendly and has the ability charge your phone FAST.
Forbes | Famously Smelly Fruit Could One Day Charge Your Phone
Off-grid Solar Energy Serving 420 Million Users
Off-grid Solar (OGS)
- growing by 30% per year
- $1.75 billion in annual turnover in 2019
Benefits of OGS
- considered one of the most widely accessible and affordable renewable energy sources
- an option for the 800 million+ people without access to clean and affordable energy
Obstacles for OGS
- must meet or exceed an annual growth rate of 13% to serve a projected 823 million users by 2030
- needs $11 billion in finance to bridge the affordability gap
- a need for enabling policies
- decrease in over-regulation are necessary to expand accessibility
Sustainability Times | Off-grid solar is now available to 420 million people
Volvo Construction Equipment (CE) Pennsylvania Campus Now Zero-Waste
The PA campus
- 7 standalone buildings, 192 acres, 800 employees
- increasing landfill diversion efforts since 2012
- waste handling costs slashed by 50%+
- recycled 1,171 tons in 2019, which equates to saving 4,248 mature trees
A multi-year, multi-step process
Volvo partnered with Waste-Management to make the transition to zero-waste. The company began with single-stream recycling then multi-stream recycling, implemented a composting program, and diverted landfill waste to an energy facility that powers turbines.
Waste Today Magazine | Volvo CE partners with Waste Management to achieve zero waste to landfill
Overwhelmed by “Carbon Neutral” Pledges? There’s a Certification for That.
“Climate Neutral Certified”
A certification by the nonprofit Climate Neutral https://www.climateneutral.org
The certification process
Climate Neutral helps companies estimate their carbon emissions and requires them to buy carbon offsets. To claim carbon neutrality and receive the certification the brand’s entire carbon footprint must be offset.
A 12-24 month reduction action must also be provided.
How many companies are currently certified?
135 brands including Klean Kanteen & Kickstarter
The Verge | There’s a new label to vet brands’ climate change pledges
Virginia Sets Timeline to Close Fossil-fuel Plants
The Virginia Clean Economy Act
requires the state’s biggest utilities to deliver electricity from 100% renewable sources by 2045
What supporters are saying
- The legislation will jump-start the wind and solar industries in Virginia, creating new jobs and boosting the economy.
- Virginia will be among the top states in the nation to cut emissions.
What opponents are saying
The legislation preserves the monopoly of state’s biggest utility (Dominion Energy) on renewable energy in Virginia and doesn’t provide enough protection for consumers.
The Washington Post | Virginia passes sweeping law to mandate clean energy amid questions about cost
Millennials Are All About (Environmental, Social, Governance) ESG Investments
Millennial data:
- 87% of high net worth millennials investigate a company’s ESG before investing
- 90% aim to customize investment based on their values
- 90% want to increase their investment in socially responsible investments (SRI)
Millenial ESG Favorites
Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Johnson & Johnson JNJ
ESG Market Growth
Bank of America Corporation estimates a $20 trillion of asset growth in ESG funds in the next 20 years. That’s equivalent to the S&P 500’s value.
Yahoo Finance | Millennials Are Inclined Toward ESG: Here’s Why
Washington State Carbon-Neutral by 2050
The legislation
- cut carbon emissions to 5 million metric tons, 5% of the state’s output in 1990
- remaining emissions will be offset by carbon capture projects
- 15 states currently have similar legislation
Interim benchmark reductions
45% by 2030
75% by 2040
Opponent concerns
- There are no adjustments for population growth.
- The state could lose business to other states without similar regulations.
- There is no verbiage for carbon-reduction policies.
East Oregonian | Washington Senate adopts carbon-neutral mandate
GM’s Secret Weapon to a PROFITABLE All EV Future
Secret weapon: the company’s own battery cell
Ultium battery technology developed in partnership with LG Chem will offer flexibility and scalability for a broad range of vehicles with a lower production cost.
The “pouch cells” can be stacked like bricks to provide common building blocks for multiple vehicles and allow for superior packaging density.
Less Cobalt
Current lithium ion batteries are produced with cobalt, a rare resource often from conflict zones. The Ultium battery uses 70% less cobalt than a typical battery and GM aims for zero cobalt with continued development.
The gist of it
$20 billion investment in both electric and autonomous vehicle technologies over the next 5 years with an extensive vehicle roll out by 2025
Triple Pundit | Battery Tech is at the Heart of General Motors’ All-Electric Future
European Commission Unveils Climate Action Law
What does the proposed European Union (EU) Climate Action Law do?
- sets a common trajectory and imposes revised targets to member states every 5 years from 2023
- adopts legally binding legislation that will be enforced if the European Parliament and European Council have no objections
The budget
The EU will dedicate 25% of its budget to tackle climate change and work to mobilize $1 trillion euros in investment over the next 10 years. The funding will help regions most economically disrupted by the transition.
What are environmental activists saying
Without a plan to increase the bloc’s overall emissions goal for 2030 the 2015 Paris agreement will not be met. Activists are urging climate taxes and carbon budgets.
The New York Times | EU Commission Unveils Climate Law Amid Criticism
Half of Global GDP Under Net Zero Emission Targets
Data from the Energy and Climate Intelligence Unit (ECIU)
$39 trillion or 49% of the world’s annual GDP comes from nations, regions, or cities with net zero targets. This includes 121 nations.
HUGE increase in pledged targets
The percentage of the global GDP with net zero targets has increased 3x in the past 8 months, since the ECIU launched its tracker. The increase is linked to the Intergovernmental Panel on Climate Change (IPPC) report that was released in 2018.
IPPC Report
Reaching net zero by 2050 provides a 50% chance of keeping global warming to the Paris Agreement target of 1.5 degrees Celsius
Energy & Climate Intelligence Unit | Almost half of global GDP under actual or intended net zero emission targets
New Runway at Heathrow Ruled Illegal Due to Lack of Climate Consideration
The groundbreaking decision
The court ruled that the plans do not show compatibility with the U.K.’s Climate Change Act, which transposes the Paris Agreement commitments into law and promises to reduce emissions to net zero by 2050.
Third runway expansion details
- cost $18 billion
- estimated completion in 2028
- adds capacity of 700+ planes/day
No appeal so far
The government has seen the ruling and not sought permission to appeal to the U.K. Supreme Court.
With strong opposition from U.K. Prime Minister Boris Johnson and environmental groups, it is expected that the airport will work with the government to resolve their concerns.
Forbes | Heathrow Third Runway Rejected Over Incompatibility With Paris Climate Agreement
The European Union (EU) Creates Taxonomy to Systematically Classify Sustainable Activities
What is the taxonomy?
a 5-step EU classification system for sustainable activities that provides guidelines and classifications to enable institutions to assess whether an activity is environmentally sustainable
Phased in over 2 years
Financial firms and non-financial companies will create disclosure and assessment processes using the taxonomy to examine the overall impact of their activities on climate mitigation and adaptation
The goal
provide risk insights so firms can integrate climate objectives into strategic plans and determine targets for financing sustainable activities
Porsche Cements Funding for Battery-Powered Vehicle with “Green” Investors
The new Taycan
- priced at $100,000
- battery-powered
- challenger to Tesla’s Model S
Green vs ESG (Environmental, Social, Governance) Funding
Green financing can only be used for defined projects with environmental benefits. ESG financing has no restrictions on use of proceeds.
Why Green & not ESG?
Porsche sought standardization for clearer objectives and transparency which was available via Green financing.
Green financing enables the company to tap funds with a dedicated sustainability focus and provide an alternative path for investors that were over-exposed to the auto industry.
Business Standard | Porsche to lean on green financing for its $6.6 billion electric-car plan
SEC Asks for Comments on ESG Fund Names
EC inspired by increased demand
With a recent boom in funds named ESG (Environmental, Social, Governance) the SEC (Securities and Exchange Commission) wants to ensure money managers are not falsely advertising.
The SEC requested public comment on whether ESG products should follow existing rules requiring a fund’s name to match its investments.
The Boom
ESG Funds attracted $21.4 billion of new money in 2019, totaling $137 billion of assets.
The number of funds in various sustainable names
- ESG – 331
- SRI – 208
- Sustainable – 162
- Green – 49
- Social – 30
- Environment – 26
Bloomberg | ESG Funds Might Soon Have to Prove to SEC They’re Actually ESG
Growing Bi-Partisan Support for Carbon Capture Legislation
The Utilizing Significant Emissions with Innovative Technologies (USE IT) Act
Boosts research into far-off technologies to capture carbon emissions directly from the air and to reuse carbon dioxide in cement and steel production.
Background
The legislation is attached to the Senate’s fiscal 2020 defense bill but was rejected for procedural reasons . Recent hearings have brought Democrats onboard with amendments.
While the Trump Administration has not weighed in specifically, it generally supports carbon capture and considers it a way to make coal more sustainable and efficient.
Additional support
- Oil & Gas Industry
- National Wildlife Federation
- National Audubon Society
- multiple Democrat co-sponsors
Bloomberg Environment | Carbon Capture Legislation Gaining Steam, Bipartisan Support
Switzerland Pledges Carbon Neutrality by 2050
Swiss climate action
In 2015 the country was the first in the world to submit to the U.N. a formal climate change plan that would reduce emissions 50% below 1990 levels by 2030.
Updated Nationally Determined Contribution (NDC)
The U.N. seeks countries to submit stronger NDC’s detailing methods to achieve the Paris Climate Agreement goals. Currently most submitted NDC’s map out plans for 2025 or 2030 goals.
Swiss plan details to be released in December 2020
Details on how the country will meet the 2050 goal are expected after the Swiss parliament updates its key piece of climate legislation, the CO2 Act.
Climate Change News | Switzerland joins few nations confirming to UN it will enhance climate action plans
10 Years in, Austin’s “Zero-Waste” Progress
The beginning
The city adopted the Urban Environmental Accords in 2005, committing to be zero-waste by 2040.
Austin’s “zero-waste” programs timeline:
- 2011 – Austin Resource Recovery (ARR) piloted curbside recycling collection
- 2015 – the waste characterization study found the materials from Austin landfills to be compostable (46%) or recyclable (44%), and only 10% required solid waste disposal
- 2016 – ARR rolled out it’s curbside composting program which now provides green compost bins to all residential Austin customers
- 2018 – the city adopted its Universal Recycling Ordinance requiring businesses to divert at least 50% of their waste from the landfill
Austin composting could save money
30-40% of the food supply becomes food waste which costs $165 billion/year to properly dispose. Converting food waste to compost will enrich the soil and support future crops.
The Austin Chronicle | A Decade of Action Toward a Zero-Waste City
Serious Competition for Tesla
Polestar: the competition
- launched in 2017 with a plug-in hybrid called the Polestar 1, which has the longest electric range of any hybrid
- owned by Volvo Car Group and Chinese auto giant Zhejiang Geely Holding
- Sweden-based
- released the all-electric Polestar 2 last year and plans to develop a fully electric SUV in the near future
Polestar’s goals
Vehicle sustainability is about more than all-electric or hybrid capabilities. Recently released plans to incorporate natural fibers and 3-D knit fabrics to achieve a 50% reduction in weight and 80% reduction in plastic for their vehicles.
Other EV cars incorporating sustainable materials
- Fisker Ocean electric crossover
- Nissan Leaf
- BMW i3
Triple Pundit | ‘Tesla Killer’ Polestar Says It’s Going Beyond All-Electric Vehicles
JetBlue Closes Sustainability-linked Loan
The sustainability-linked loan
JetBlue and BNP Paribas SA, amended an existing $550 million senior secured revolving credit facility by closing a sustainability linked loan.
The credit facility’s sustainability updates
- includes a pricing mechanism related to JetBlue’s ESG (environmental, social, governance) score
- JetBlue must align its strategic initiatives with its ESG performance goals and objectives
Why the change?
JetBlue is increasingly focused on ESG goals. The airline is shifting business to financial partners with stronger ESG policies and operating carbon neutral on all domestic flights by offsetting emissions from jet fuel.
The Wall Street Journal | JetBlue Closes Sustainability-Linked Loan With BNP Paribas
Baltimore Develops a “Zero Waste” Plan
The plan
- distribute large recycling bins and compost containers citywide
- pay local residents a living wage to collect recyclable materials
- salvage construction and demolition materials
- promote community adoption and ownership of vacant lots and buildings
- cut ties with Wheelabrator, the city’s trash incinerator
Supporters
a coalition of environmental and community groups and 6 Baltimore City Council members
Opposition
Wheelabrator officials argue that burning waste at the facility is better for the environment than transporting waste to a landfill. It also generates electricity and steam to heat downtown buildings, reducing the need for fossil fuels.
The Baltimore Sun | Baltimore launches plan to get to ‘zero waste,’ starting with closure of city trash incinerator
Green Mountain Energy Invests $200k in Houston Housing Nonprofit
Avenue CDC
Houston-based nonprofit dedicated to developing affordable homes and strengthening communities
Green Mountain’s Sun Club
The Sun Club had donated $8.9 million to 122+ projects.It is an employee and customer funded nonprofit that empowers local communities through nonprofit partnerships and sustainability grants.
$200,000 to the Near Northside new community resource center
- 35+ kilowatts (kW) total of solar to reduce energy costs,
- an electric vehicle,
- electric vehicle charging stations,
- bike racks for clean methods of transportation,
- showers installed on-site to encourage bicycle commuting by Avenue Center tenants
CSRwire | Avenue’s New Community Center Gets Sustainable Upgrades in Near Northside
Women’s Clothing Brand to Lend Clothes for the Campaign Trail
“Ready to Run” Initiative
Only 27% of elected officials in the U.S. are women.
Through this corporate responsibility initiative M.M. LaFleur will lend clothes to women who run for office to support female candidates who lack the financial resources or time to build a wardrobe for the campaign trail.
Non-partisan
To clearly set their non-partisan intentions the brand is partnering with the non-partisan group, “She Should Run”, which has a goal of recruiting 250,000 women to run for office by 2030.
The response
Within 2 days of the Instagram announcement 550+ women responded.
The Washington Post | Dressing for the campaign trail can be tough for female candidates. M.M. LaFleur is lending free clothes to ease the burden.
Environmental Impact of Farming Cut in Half by USDA
The 2050 initiative:
- cut farming’s environmental impact in half
- increase farm productivity by 40%
Nothing to do with climate change
The initiative will not mention climate change. Instead it will focus on research, innovation, and improving the USDA’s ability to collect data on farmers’ conservation practices.
Related USDA happenings
“Climate change” is a touchy topic for the USDA to address due to the current administration rolling back environmental regulations and the reluctance of farmers and ranchers to grapple with the scientific consensus that global warming is caused by human activity.
Farming associations and lobby groups are more open to increased sustainability when the cause of global warming is not relevant.
Politico | USDA to unveil plan to cut farms’ environmental impact in half by 2050
European Union (EU) Investing BIG in Climate Projects
- EU’s funding instrument for environmental and climate action
- founded in 1992
- co-financed 5,400+ projects
- 2021-2027 budget to increase by 60%
Climate projects
$108 million toward 10 large-scale environmental and climate projects that will “conserve nature, improve air and water quality, and make the economy greener”
Where?
Cyprus, Estonia, France, Greece, Ireland, Latvia, Slovakia, Czechia, Spain
Circular. | EU invests more than €100m to promote a “green and climate-neutral” Europe
New York State Pension Spends $800 million in Climate-Related Investments
The investments:
$250 million to Calvert Social Investment Fund for green bonds
$250 million to Nuveen’s Core Impact Bond Strategy
$300 million to an impact fund from Avenue Capital Group
The state pension fund’s history on climate action
- considers itself a leader on climate action and has sought to take advantage of financial opportunities created by the transition to lower carbon
- made a climate action pledge in 2019
- plans to double its sustainable investments to $20 billion
Chief Investment Officer | New York Invests $800 Million into Green Bonds, Private Credit
BP: Carbon Neutral by 2050
How?
BP will still produce oil and gas in 2050 but less than it does now and it will invest more in low-carbon businesses.
The pledge requires BP to cut or offset 360m tons of greenhouse emissions each year though tree-planting and/or carbon capture technologies.
Change in the business model
The model will no longer be upstream or downstream. There will be four new business areas:
- production and operations
- customers and products
- gas and low-carbon energy
- innovation and engineering
Other environmental changes
The company will play a more active role in lobbying for policies that prompt action on the climate crisis.
It will cut spending on corporate reputational sponsorship and redirect the funds towards promoting climate action.
The Guardian | BP sets net zero carbon target for 2050
1000+ Global Firms Support Voluntary Guidelines Disclosing Investment Risk from Climate Change
The task force behind the guidelines
The Task Force on Climate-related Financial Disclosures (TCFDs) was established in 2015 to provide recommendations on climate-related financial disclosures and has had explosive growth in participation.
The motivation to report
- Companies reporting TCFD recommendations have a lower risk profile and perform better than their peers.
- The World Economic Forum recently ranked climate risks as the top 5 threats facing the global economy.
- There is increased investor demand for information to help mitigate risks and understand opportunities related to the transition to a low carbon economy.
The firms
- 1,027 organizations across 55 countries
- 473 financial firms responsible for a combined $183.8 trillion
- major banks, regulators, stock exchanges, credit rating agencies, and national governments
Business Green | Climate risk: 1,000 global firms give backing to corporate disclosure guidelines
Self-driving Cars Coming to Houston
The program
Test drives will start soon for all-electric, self-driving cars designed by Nuro to deliver fast food, groceries, and small packages.
Participants
WalMart, Domino’s, Kroger
Nuro’s R2 vehicle
- battery-powered and smaller than any passenger car
- relies on AI software, digital sensors, cameras, and LIDAR technology link: https://oceanservice.noaa.gov/facts/lidar.html
- 360-degree vision to monitor for traffic, pedestrians, bike riders, and road conditions
- front end will giveaway should it strike a pedestrian or vehicle
- recently received the Department of Transportation’s first federal exemption to test drive on public streets
- a BIG HIT with investors raising over $1 billion
Triple Pundit | Nuro’s Self-Driving Electric Cars Will Soon Make Deliveries in Houston
Bezos Steps Up on Climate Action
The Bezos Earth Fund
will finance “scientists, activists, NGOs – any effort that offers a real possibility to help preserve and protect the natural world”
Bezos past commitment to climate action
He’s previously invested in the Breakthrough Energy Ventures fund to finance the development of tech to mitigate climate change and reduce fossil fuels and carbon emissions.
Amazon’s climate action
- committed to net zero carbon by 2040
- by 2030 the entire corporate infrastructure will be powered by renewables
Background/Refreshing Our Recollection
Recent media reports have focused onAmazon’s employees and their participation in an all employee organization for “climate justice,” which may be a catalyst for Amazon’s commitment to climate action.
TechCrunch | Jeff Bezos announced a $10 billion fund to fight climate change
Third-party Platforms Provide Sustainable Fashion Information
Why the need?
There is no one definition of “sustainable” or “eco-friendly” although the terms are very on-trend in the fashion industry. Consumers want sustainable clothing options and are overwhelmed trying understand the social impact of each brand.
Informative platforms
Wearwell, Good On You, & Compare Ethics review sustainability criteria for brands and choose items to feature accordingly.
The companies consider criteria such as using recycled or materials organic materials and paying workers a living wage when curating their platforms.
Helpful for the fashion industry
These platforms inform the industry of what the consumer is looking for in sustainability. Recently there has been a strong increase in consumer interest in living wages and organic cotton products.
Vogue Business | The shopping platforms that want to standardize sustainability
Super Bowl Ads Focus & Corporate Social Responsibility (CSR)
Companies with social impact commercials
P&G, Michelob, Verizon, and Snickers
Lessons from successful CSR ads:
- Be timely & relevant
- Avoid politics and stay true to your brand
- Connect with the right audience whether it’s customers, policymakers, or both
- Focus on impact
A successful example:
P&G Olay’s ad featuring the hashtag #makespaceforwomen and referencing the all-female space crew currently on the International Space Station.
Marketing Dive | Corporate social responsibility emerges as content king in 2020 Super Bowl ads
U.S. Senate’s First Major Climate Legislation of 2020
Clean Economy Act
The bill lays out a plan for the U.S. to achieve net-zero greenhouse gas emissions no later than 2050. The E.P.A. will be responsible for implementation.
Who introduced it?
Senate Environment and Public Works Committee Chairman Tom Carper (D-Del.) and other Democrats
The House version:
The U.S. House released a broader bill (600 pages) detailing efforts to reduce emissions but the Senate version has more support including environmental and labor groups as well as the business community.
The Hill | Senate bill requires US to reach net-zero carbon emissions by 2050
Retail Stores to Add Loop Products
Loop: a modern version of the milkman model
Brands design non-disposable packaging for everyday items such as deodorant, ice cream, laundry detergent, dish soap etc.
Consumers pay a deposit for the product’s container. Once the product is used, customers schedule a pickup and do not pay the deposit again as long as the container is returned. An online ordering system makes the process seamless and the introduction of Loop into retail stores will reduce deposit costs and increase brand selections.
Brands OnBoard:
Nestlé, Unilever, P&G
Benefits:
- Ellen MacArthur Foundation estimates that converting 20% of plastic packaging to reusable models is a $10 billion business opportunity
- Decrease in the carbon footprint for brands in the program
- Reduction of plastic waste in oceans and landfills
- Packaging designed by brands to optimize product quality (think ice cream that never melts in route to the store or home)
- The aesthetics of Loop packaging are more appealing to customers
Fast Company | Giant brands love Loop’s zero-waste packaging—and now it’s coming to a store near you
Tech Companies Top the List of Renewable Energy Buyers
The 2019 Renewable Energy Buyers Alliance Report
Names the top renewable energy buyers for 2019, totaling 9.33 gigawatts of renewable energy bought in the U.S
Renewable procurers on the list:
At the top of the list: Facebook and Google
Surprises on the list: McDonalds, Honda, Ford
Why tech companies?
Tech companies require energy-intensive data centers. Pressure is increasing for improved efficiency of data centers which involves the purchasing of more renewables.
Triple Pundit | Tech Companies Dominate the Largest U.S. Renewable Energy Buyers of 2019
JetBlue: Carbon Neutral on all Domestic Flights
How will JetBlue achieve this?
Since 2008 the company has had carbon offset programs which amount to 2.6 billion pounds of offset carbon emissions. JetBlue will continue these programs to offset an additional 15-17 billion pounds.
What is a “carbon offset”?
A carbon offset can be bought by a company to fund projects that reduce greenhouse gas emissions. Funds go to renewable energy projects, reforestation programs, or similar projects that reduce carbon emissions.
When will the company make the shift?
July 2020 for the summer travel rush
Digital Media Solutions | JetBlue Goes Carbon Neutral As Social Responsibility Encourages Brand Loyalty
Nike Designs Sustainable Olympics Apparel
Move to Zero Collection
The line has been designed for the 2020 Summer Olympics in Tokyo and is made of at least 60% recycled and organic fabrics using new manufacturing methods to reduce waste.
Just the beginning
Nike is working on a “wholesale shift” in the way the company thinks about designing, sourcing, manufacturing, and selling all products.
Skateboarding: the new kid on the block
2020 is the first year skateboarding will be an Olympic sport and Nike is designing 100% recycled polyester uniforms for the USA, French, Brazilian, Nigerian, and Korean teams.
Yahoo Finance | Nike’s Tokyo Olympic apparel is made out of 60% recycled material
U.S. Senate Bill to Address Plastic Pollution
Break Free From Plastic Pollution Act
Introduced by Sen. Tom Udall (D-N.M.) and Rep. Alan Lowenthal (D-Calif.)
The bill shifts costs of managing waste and recyclables from local and municipal governments to the producers of plastic materials.
Current issues with U.S. recycling:
Many U.S. municipalities were shipping a large percentage of their recyclables abroad until 2018 when China changed its import policy on scrap materials. This coincided with increased public concern about ocean pollution and plastic waste.
The Hill | New bill calls for US to address source of plastic pollution
First German City Commits to Zero Waste
The City:
Kiel, a Baltic port , is the first and only German city to commit to the global “zero waste” initiative.
The Goal:
eliminate waste, conserve and recover resources and not burn or bury them
Background:
With a 68% recycling rate, Germany leads the EU in recycling. Many German cities believe enough is being done via these efforts although they are a top waste producer.
Others to commit to zero waste:
Corporate: Adidas, AG, Unilever, & BlackRock
Government: 300 municipalities in Italy, 100 municipalities in Spain, U.S. cities such as San Francisco
Bloomberg Green | Meet the First (And Only) German City to Commit to ‘Zero Waste’
Etsy Doubles Number of Black & Latino Employees + Leads with Women
The numbers:
15% of Etsy’s 1,209 employees are black and Latino
The plan to reach the 2023 goal of 18% Black & Latino employees:
- implement mentorship programs
- create hiring rubrics to be more fair
- make changes to its performance management system
Black & Latino employees in other tech companies:
- Pintrest – 10%
- Google – 6.5%
- Twitter – 10.4%
Etsy’s rare accomplishment for the tech industry:
50%+ of the company’s workforce, board, and executive team are women.
CNBC.com | Etsy doubles black and Latino hires but still has work to do, diversity report shows
European ESG (Environmental, Social, & Governance) Funds Increase by $132 Billion
The 2019 European numbers:
- funds that incorporate ESG criteria into their strategies increased 56% to $735 billion
- 50+ of the 360 funds started had a climate-oriented mandate
- the number of sustainable investment funds rose to 2,405
Who’s jumping on the ESG bandwagon?
Big investment firms around the world like BlackRock Inc. and Amundi SA
Bloomberg | European ESG Funds Pulled in Record $132 Billion in 2019
Microgrids: The Energy Solution?
Why the increase in microgrids?
increased demand for resiliency coupled with the far better energy security they provide
Companies poised to benefit from the increased interest in microgrids:
- CleanSpark, Inc.
- General Electric Company
- Eaton Corporation PLC
- Home Depot Inc.
- Walmart Inc.
Examples of the increased interest:
- Excel Energy is seeking approval for 7 new microgrid projects.
- California will complete microgrid projects prior to the next wildfire season.
- Cranston, RI plans to reach 100% renewable energy by 2030 with wind and solar microgrids
PRNewswire | Microgrids are Becoming the Most Sought After Solution to Energy Problems
Jeweler Pandora: 100% Carbon Neutral by 2025
Pandora climate-based targets:
- source 100% renewable electricity at its 2 crafting facilities in Thailand by 2020
- achieve carbon neutrality in its own operations by 2025
Plans to reach goals:
- source renewable electricity for its 2 Thailand facilities from verified solar energy providers
- increase its own production of solar power
- engage directly in developing renewable energy projects through power purchase agreements
- introduce a policy for purchasing green power for its stores
- purchase carbon offsets for remaining unavoidable emissions, less than 5%
Current sustainability efforts:
use of primarily recycled metals and man-made stones which have a significantly lower environmental footprint than mined stones
Professional Jeweler | Pandora vows to be 100% carbon neutral by 2025
GM Plans 100% Electric Vehicle (EV) Future
GM’s EV Investments:
- $2.2 billion to convert its Detroit-Hamtramck plant to exclusively produce all-electric trucks and SUVs
- $28 million for a new EV battery research center
- $2.2 billion to form a joint-venture with LG Chem for more affordable EVs
Past GM attempts at EVs:
- EV-1 – launched in 1996, only 1000 units sold before pulling from market in 2001
- Volt electric hybrid (sedan) – launched in 2010 and pulled in 2018
- Volt electric hybrid (crossover) – launched in 2016
Key takeaway:
While GM’s current focus is on primary internal combustion engine cars, it is building an infrastructure to compete with Tesla on EV cost.
Triple Pundit | GM Seeks Competitive Edge in a 100 Percent EV Future
The Guardian Becomes First News Organization to Refuse Advertising from Oil & Gas
Why?
based on the newspaper’s reporting on the urgency of climate change and a desire to be true to company vales
A broad editorial shift on “climate change”:
- transitioning from use of the term “climate change” to “climate crisis” or “climate emergency” to more accurately reflect the situation
- will use images that reflect the human costs of the “climate crisis” rather than lonely polar bears
The risk:
40% of the newspaper’s revenue comes from advertising. It is unclear how the move will financially impact the organization.
The Washington Post | The Guardian ends advertising from fossil fuel companies because of climate change
Stella McCartney’s New Collection Highlights Climate Crisis
The Collection:
“We are the Weather” is a capsule collection (essential items that won’t go out of style) inspired by Jonathan Safran Foer’s book which recommends eating less meat as a way to save the planet.
Sustainability:
All pieces of the collection are made with sustainable fabrics such as organic cotton, organic linen, and regenerated cashmere.
McCartney – a leader in fashion sustainability:
- life-long vegetarian
- leader in innovative materials like “fur-free-fur” and viscose fibers
- recently implemented a garment labeling system to remind customers of the environment when washing and maintaining their clothes
The Independent | STELLA MCCARTNEY AND AUTHOR JONATHAN SAFRAN FOER LAUNCH SUSTAINABLE COLLECTION TO HIGHLIGHT CLIMATE CRISIS
Verizon in “Midst of a Sustainability Evolution”
Recent Verizon sustainability commitments:
- carbon neutrality by 2035
- reduce electronic waste
- decrease water consumption
- counter deforestation
The plan to decrease current emission levels:
- give customers options to reduce their carbon footprint when using Verizon
- lease space in energy-efficient buildings
- deploy internal green teams across 44 countries
- install onsite renewable power
- plant 2 million trees by 2030
Past Verizon sustainability commitments:
- eliminated 8.2 million tons of C02 emissions
- repurpose, reuse, or recycle 100 % of all wireless devices and accessories
- offset 20,000 metric tons of CO2 through clean energy initiatives
Triple Pundit | Verizon Stands Firm on Commitment to Become Carbon Neutral by 2035
Total Sued over Carbon Emissions
The litigation:
14 local governments and a few NGOs in France are suing Total SA for not doing enough to reduce its carbon emissions.
Total’s current climate commitment:
- 13% reduction in greenhouse gas emissions by 2025
- “ambition” to reduce carbon intensity of energy sold to customers by 15%
- investing $2 billion annually in low-carbon electricity
What the plaintiffs want:
Total to “align itself on a trajectory compatible with limiting global warming to 1.5 degrees Celsius”
Bloomberg | Total Sued by French Cities, NGOs Over Carbon Emission Targets
Amazon Employees Buck Company Policy for Climate Action
The Policy:
The company’s external communication policy prohibits employees from discussing company business without approval.
Amazon Employees for Climate Change:
The employee advocacy group has published statements and blog posts in multiple national newspapers to protest Amazon’s contribution to climate change and the company’s threats to terminate employees who speak on the matter.
The Trend:
Tech workers at Amazon, Google, Microsoft, and Tableau are leveraging their position as valued assets in a tight labor market to pressure employers on political issues.
Geek Wire | Hundreds of Amazon employees protest company PR policy by speaking out about climate change
Volkswagen & Microsoft Partner for Sustainability
Areas of focus:
Sustainability, digital education and training, employee engagement for social good
Access to digital technologies:
To make employees and job seekers fit for the digital job market Microsoft will offer a digital training program at a Volkswagen’s Faculty 73, a training program for IT specialists.
Reduction of carbon emissions:
A “thinkathon” will be held this Spring with participants from both companies considering how to use artificial intelligence to reduce carbon dioxide emissions.
Why:
Both companies have previously committed to sustainability issues and teamed up to improve the efficiency of their programs.
Automotive World | Social responsibility: Volkswagen Group and Microsoft expand partnership
New Jersey Regulating Land Use to Fight Climate Change
Regulatory Action:
Governor Murphy issued an executive order requiring the state Dept. of Environmental Protection (DEP) to draft new regulations to be adopted by January 2022.
Applicants for DEP permits and approvals will be forced to consider how climate change will impact the project and the effect of its emissions on global warming. Rules will also apply to construction of state-funded projects and anything built with grants.
Why:
A November 2019 study found sea level in New Jersey is rising more than two times faster than the global average and some coastal areas are experiencing subsidence (sinking).
National Trend:
Several other states including Rhode Island are considering land-use laws to confront coastal resiliency.
New York and California are taking regulatory climate action in light of the Trump administration’s regulatory rollbacks.
New York Times | With 130-Mile Coast, New Jersey Marks a First in Climate Change Fight
(Environmental, Sustainable, Governance) ESG Funds Outperform the Market
Key Takeaway:
Top financially performingcompanies help customers with energy efficiency, solve of the biggest sustainability challenges, and are leaders in productivity
3 ESG Funds outperformed the market by 4%:
- $878 Million Ave Maria Growth Fund
- $4.9 billion Putnam Sustainable Leaders Fund
- $3.8 billion Calvert Equity Fund
Companies that top performing ESG funds bet on:
- tech – Microsoft Corp., Apple Inc. and Alphabet Inc.
- healthcare – Danaher Corp. and Thermo Fisher Scientific Inc.
- finance services – Visa and Mastercard
bloomberg.com | The Biggest ESG Funds Are Beating the Market
Wendy’s “Good Done Right” Initiative to Focus on Animal Best Care Practices
“Good Done Right” Details:
Achieve better housing conditions and responsible antibiotic use for livestock used by the brand by the end of 2024
Wendy’s 2019 Noteworthy CSR Efforts:
- achieved a perfect score the Human Rights Campaign’s Corporate Equality Index
- utilized all hydroponic, vine-ripened tomatoes in North America
- designated a Best Place to Work for LGBTQ Equality
- raised $15 million+ for the Dave Thomas Foundation for Adoption and its Wendy’s Wonderful Kids program
- extended domestic partner benefits to company employees
- expanded Employee Assistance Program to all company employees
QSRweb.com | Wendy’s pledges improved animal housing, responsible antibiotic use by 2024
Corporate Giants Commit to Climate Action Before Davos
What is Davos?
Davos is the location of the World Economic Forum’s annual meeting where business leaders and government heads use the media spotlight to highlight major sustainability announcements.
Corporate Giant Announcements:
- Nestlé:
- commits to all recyclable or reusable packaging by 2025
- invests $2 billion in the development of sustainable packaging solutions
- Microsoft:
- commits to remove all carbon it has created by 2050 and will be carbon negative by 2030
- invests $1 billion into a climate innovation fund
- BlackRock:
- joins the Climate Action 100+
- exits investments in thermal coal producers
- sent a letter to investors describing climate change as a defining factor in companies’ long-term prospects
The (Customer Data Platform) CDP A-List:
CDP is an international non-profit that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts.
The CDP’s A-List compiles the world’s most pioneering companies at the forefront of environmental transparency and performance.
A few international leaders of the CDP A-List:
AstraZeneca, BT Group, CVS Health, Danone, H&M, Grupo CCR Klabin, The LEGO Group, L’Oreal, Ørsted, Sainsburys, Samsung Engineering, Sony, Unilever, & Walmart
Ethical Corporation Magazine | Microsoft, Nestlé and BlackRock put climate action centre stage at Davos
Bank of America CEO: clients want ESG investments
Bank of America:
- clients invest $25 billion in environment, social, and governance (ESG) funds
- $300 billion investment over the next decade in sustainable business projects
- deploy $126+ billion to environmental business efforts
ESG investing on the rise:
$20 billion invested in ESG mutual funds. This is four times the 2018 level, which had been the previous record.
CNBC | Bank of America CEO says clients want to invest in companies ‘doing right by society’
Industry 4.0 – The Fourth Industrial Revolution
What is it?
The rapidly accelerating corporate trend to focus on strategy, societal impact, talent, and technology
Surveyed 2,000+ C-Suite executives in 19 countries to see how organizations are utilizing technology to profit while acting in a more socially responsible way
Survey findings:
- Companies with a comprehensive Industry 4.0 plan are outperforming their counterparts
- 40% of respondents focus on social issues because of the importance to external stakeholders
- 70% who’ve integrated Industry 4.0 have made a great deal of progress toward their goal of making a profit and an impact
- 90%+ have sustainability plans or are building them
Forbes | The Fourth Industrial Revolution: At The Intersection Of Readiness And Responsibility
Increasing Corporate Concern over Climate Action Litigation
Budha Ismail Jam v. International Finance Corp.
Fishermen sued IFC on the grounds that it approved a $450 million loan for the Tata Mundra Ultra Mega Power (Coal) Project without ensuring that developers would adhere to environmental standards.
Resulting pollution prevented fishing nearby and reduced fish population.
The legal journey:
Lower courts accepted the IFC’s argument that it has immunity as a foreign government under the 1945 International Organizations Immunities Act (IOIA).
The U.S. Supreme Court determined in a 7-1 ruling that those protections have limits.
The bottom line:
There is no longer absolute legal immunity for the IFC and similar organizations.
In the most recent Allianz Risk Assessment survey, 33% of the 3,000 respondents said the threat of legal and regulatory action poses the most significant impact in relation to corporate climate risk.
eenews.net | World Bank coal case a testing ground for climate liability
Larry Fink: Sustainability MUST be Woven into Business Models
Larry Fink’s prediction:
In Fink’s statement about BlackRock joining the Climate 100+, he predicts that capital will increasingly be allocated to companies with the most sustainable business models.
What does this mean for the future of business?
The corporate roles of finance, investor relations, and sustainability must become symbiotic.
Stock prices react to sustainability:
Most stockholders do not read sustainability reports. However, when CEOs present long-term social responsibility plans to investors, stocks go up.
New reporting methods that are more convenient for investors must be developed to simultaneously account for both economic performance and social impact.
Examples of sustainability leading to profit:
- Walmart raised entry-level employee wages leading turnover to decline and productivity to increase.
- PayPal extended financing to small businesses that were denied credit, and opened a $10 billion market opportunity.
- Novartis brought health education to rural villages in India and opened a new market of 70 million potential customers.
Harvard Business Review | Larry Fink Isn’t Going to Read Your Sustainability Report
MasterCard & Partners Commit to Doing Well by Doing Good
The “Priceless Planet Coalition”:
Platform to unite corporate sustainability efforts and make meaningful investments to preserve the environment.
What will it do?
The coalition will plant 100 million trees over 5 years and encourage customers to use mass transportation and contribute to their tree planing initiative.
Coalition partners:
Citibank, Santander UK, IHS Markit, bunq, Saks Fifth Avenue, L.L. Bean, New York Metropolitan Transportation Authority, Transport for London, and American Airlines
Yahoo Finance | Mastercard and Partners Launch Priceless Planet Coalition to Act on Climate Change
Sonoma Drafts Ordinance to Ban Styrofoam
Items to be included in the ban:
food containers, cups, bowls, foam coolers, pool toys, packing peanuts and foam wine-shipment inserts
Items not included in the ban:
Clear plastic containers, foam trays under meat or fish at grocery markets, items shipped into the city, and an exemption if a business demonstrated the ordinance presents a hardship.
Enforcement?
Via a complaint-based system, consumers will be able to report people or businesses. The City will provide 3 warning letters and then issue fines.
Public opinion:
In an online survey of chambers of commerce, trade organizations and local businesses:
- 91% supported a ban on polystyrene food containers at food establishments,
- 89% supported a ban on the sale of polystyrene foam products at retail stores,
- and 87% supported straws being provided only upon request.
Sonoma News | Pool noodles and packing peanuts: Sonoma takes aim against Styrofoam
Italian Fashion Industry Focusing on Diversity & Inclusion
The Italian National Fashion Chamber diversity agenda:
The 100+ chamber members will increase racial and gender diversity in key roles in Milan’s fashion houses. Progress will be monitored annually.
Why now?
Recent scandals involving blackface designs by Gucci and Prada and a Chinese backlash that forced Dolce&Gabbana to cancel a major Shanghai show.
Other Italian Fashion Initiatives:
- Gucci launched a scholarship program to reach students who’ve been misrepresented in the industry.
- Prada announced a diversity council headed by two Americans.
The Washington Post | Italian fashion world adopts manifesto promoting diversity
EY Launches Worldwide Program to aid 1 Billion People
The Program:
“EY Ripples” – aims to positively impact 1 billion people by 2030 by offering consulting services for a nominal fee so impact entrepreneurs can afford them
Employee Engagement:
More than 1 million firm members will participate to:
- work with entrepreneurs to find innovative solutions to global issues
- support the next generation to find and maintain meaningful work
- build environmentally-friendly business models that simultaneously advance economic opportunity
Status:
500 EY Ripple projects have already been completed. All relate to the UN’s Sustainable Development Goals
Accounting Today | Firms giving back: EY launches worldwide ‘Ripples’ program
BMW: 1st Automaker to Join Responsible Mining Initiative
Initiative for Responsible Mining Assurance (IRMA):
IRMA is a certification program that measures the performance of industrial-scale mines against its Standard for Responsible Mining. The certificate is used for multiple industries seeking increased transparency within their supply chain.
What Led to the Move?
The industry pivot to electric vehicles requires products such as cobalt and lithium but these materials are often produced in dangerous or illegal mines in conflict-ridden countries.
Others in the IRMA:
- Tiffany & Co.
- Anglo American
- Microsoft
- International Jewelers of America
GreenBiz.com | BMW is the first carmaker to join responsible mining initiative
Canada Moving to Limit Single-Use Plastics
Legislation:
- Prime Minister Justin Trudeau is working to ban single-use plastics as early as 2021.
- Vancouver is the 1st Canadian city to ban single-use foam.
- Canadian provinces of Nova Scotia, Manitoba, Prince Edward Island, Newfoundland, and Labrador are planning bans.
Canadian Polling:
- 64% of consumers want to be offered the option of packaging-free products and deliveries.
- 71.2% support a ban on all single-use plastics.
- 94% are “personally motivated to reduce single-use plastic packaging”.
Corporate Examples:
- Early this year Loblaw Companies Ltd will pilot a program with TerraCycle to allow shoppers to buy items in reusable containers.
- Metro, Inc allows customers to buy meat, fish, and pastries using their own containers.
- Empire Co. Ltd. will phase out plastic bags by the end of the month.
BNNBloomberg | Businesses aim to reduce waste in 2020 as consumers become more eco-conscious
CEOs: Focused on CSR & Optimistic About 2020 Economy
The Data:
GLG survey of 100+ current North American CEOs across multiple sectors
CEO thoughts on Corporate Social Responsibility (CSR):
- 90% agree with the Business Roundtable’s recent policy statement.
- 85% plan to contribute money and/or in-kind services to combat climate change.
62% plan to change hiring practices to advance gender parity.
57% plan to change hiring practices to advance racial justice.
2020 CEO Financial Outlook:
- 80% are confident that their company’s revenue will grow
- 51% think global growth will increase
PR Newswire | GLG 2020 CEO Survey Data Released: CEOs Bullish on Growth and Embracing Social Responsibility
Vanderbilt Going Zero Waste by 2030
The 2030 “zero waste” goals:
- 90% diversion rate from the landfill
- 30% reduction in campus-generated waste
Vanderbilt’s Sustainability Track Record:
- 30 year history of recycling
- 1st premier institution in the Southeast to pursue carbon neutrality and set a Net Zero + Resilience energy goals (by 2050)
- currently diverts 47% of waste from the landfill
How the Goals Were Determined:
On and off-campus stakeholders participated in a 9 month process to address the university’s carbon footprint and provide recommendations to reduce the university’s environmental impact.
vanderbilt.edu | Vanderbilt University commits to achieving zero waste goal by 2030
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