“What is the most practical business solution with the largest potential impact in the race to net zero carbon?”

In exploring this question we reached out to leading experts in the ESG investing industry to find out their responses, and this is what we found…

QUESTIONWhat is the most practical business solution with the largest potential impact in the race to net zero carbon?

ANSWERKristin Barbato, CEO & Founder of Build Edison, Co-Founder of Dynamo Energy Hub

ANSWERWe have the technology for clean energy, air, water, and food. What we don’t have are clear paths to unstopper their promulgation at scale. The largest obstacle to scaled implementation is mostly due to a combination of lack of accessible capital and a patchwork of complex regulatory rules. Therefore, I believe the path to scaling clean solution implementation is streamlined capital and permitting.

QUESTIONWhat is the most practical business solution with the largest potential impact in the race to net zero carbon?

ANSWERSarah Adams, Chief Sutainability Officer, Vert Asset Management

ANSWERGlobally, physical assets and supply chains are facing increasing risks from climate change.  The investment community is more closely evaluating the role of science-based emissions reduction targets in corporate strategy to keep global warming to 1.5°C above pre-industrial levels. We believe all companies will need to plan for net-zero pathways.  

ANSWERAs investors in real estate, for us “net-zero energy” or “net-zero carbon” is about getting buildings to only consume as much energy as they procure from renewable sources. Buildings can achieve net zero through a combination of energy efficiency, electrification, and renewables procurement, and many have done so already and are saving money by doing so.

ANSWERBuildings consume 40% of the world’s energy and create 33% of global greenhouse gas emissions. Real estate owners can look at the transition to a low-carbon economy as an opportunity to both lower their carbon footprint and their utility bill.

QUESTIONWhat is the most practical business solution with the largest potential impact in the race to net zero carbon?

ANSWERTodd Arthur Bridges, Partner & Global Head of Sustainable Investing and ESG Research at Arabesque

ANSWERBased on scientific observational data and future scenarios, achieving net-zero emissions – the balancing of anthropogenic (human-induced) emissions with the carbon removal of GHGs already in atmosphere over a given period – will require fundamental shifts in how our economies, societies, and political systems operate. An unprecedented global collaboration across all stakeholders – countries, states, cities, companies, and investors – is needed if we are to achieve net-zero by 2050. Arabesque believes there are significant opportunities associated with a zero-carbon future and that we can play our part in helping clients with data, research, advisory, and technology solutions. As one small actor in this global stakeholder collaboration, we will do our best to create value by designing solutions such as the S-Ray Temperature Score that can help corporations make long-term strategic plans and investors to make sustainable strategic allocations aligned with the net-zero target.

QUESTIONWhat is the most practical business solution with the largest potential impact in the race to net zero carbon?

ANSWERIyassu Essayas, Director of ESG Research, Parnassus Investments

ANSWERNet Zero Carbon is an emissions target where the same amount of human-caused GHG emissions are removed from the atmosphere. It is possible to achieve but will take the international community to agree on decarbonizing their economies. The Paris Climate Agreement was the first international agreement with widespread support and commitments to do so. It is also a good example of what nations can do together to combat the effects of climate change.  

QUESTIONWhat is the most practical business solution with the largest potential impact in the race to net zero carbon?

ANSWERDesmond Wheatley is President and CEO and Chairman of the Board at BEAM Global

ANSWERTo achieve global carbon neutrality we must capture the global imagination. Big, easy to see and easy to understand wins are essential. At Beam Global we are focused entirely on the intersection of clean energy and transportation. Why? 70% of US greenhouse gas emissions come from transportation and the generation of electricity. Our products eliminate both sources. To fully electrify transportation we need rapidly deployed, highly scalable infrastructure solutions which are independent of the centralized vulnerabilities of the grid. Our products are the fastest deployed, most scalable EV charging infrastructure solutions in the world and they are powered entirely with locally generated and stored renewable energy. Driving on Sunshine delivers. Beam Global – Clean Mobility For All. (NASDAQ: BEEM).

QUESTIONQUESTIONWhat is the most practical business solution with the largest potential impact in the race to net zero carbon?

ANSWERPeter Fusaro, Partner, and Head, ESG and Impact AV Group Limited.

ANSWERNet Zero Carbon is technically possible but it will take a long-term time horizon. Realistically, 2050 is the date to achieve that goal through three market drivers: energy efficiency i.e. not consuming as much energy, and that means efficiency in the 80+% range which is doable in both buildings and transportation. A much more global deployment of renewable energy and energy storage to replace most of fossil energy in all its forms including natural gas. Finally, a robust deployment of hydrogen for both transportation and electric power generation. This means marrying hydrogen to solar and wind farms to make green hydrogen for both charging electric vehicles and running power stations, trains, and ships.

Net Zero Carbon

Before the breathing air is gone

Before the sun is just a bright spot in the night-time

Out where the rivers like to run

I stand alone and take back something’ worth rememberin

– Out in the country – Three Dog Night

By now you’re probably aware of considerable ads from companies that proudly boast they are well on their way to “net zero carbon” by 2030, or 2040, or 2050, or even now are already there, or maybe claim they have always been – and some of these proclaimers may surprise you.

Challenge accepted and victory within our grasp?  We’re going to be just fine, right?

We focus our 6th issue of the Socially Inspired Investor digest/podcast on one of the most important aspects of the Paris Climate Agreement and a founding principle of the United Nation’s sustainable development goals, the Net Zero Carbon initiative.

Carbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon dioxide emissions by balancing carbon dioxide emissions with carbon removal – not necessarily ceasing to produce carbon dioxide entirely, but offsetting its deleterious effect on the environment with actions that will help the environment 

Can we get there? Will it work? What does it mean if we do get there? What would have to change? What is the downside? Does it mean loss of jobs? Is it bad for business or good for business? Bad for investors or good for investors? We thought it was important to shine light on all these questions as we continue to coach you through the journey of becoming a socially inspired investor.

We are happy to include for this issue two podcasts.

Co-author of the new book, “Smart Cities, Smart Future: Showcasing Tomorrow” Cornelia Levy-Bencheton describes fascinating ways some localities around the world are taking on the challenges of both reducing carbon footprint while increasing live-ability.

We also hear from Mark Campanale Founder of Carbon Tracker, a London based think-tank researching the impact of climate change on financial markets. His assessment is that the net zero carbon revolution has already achieved an unstoppable momentum.  Winners and losers are becoming easier to define.  But of course the question is will it be fast enough? 

Our Spotlight On section poses this question to experts in the field:

What is the most practical business solution with the largest potential impact in the race to net zero carbon?

As you will see, the answers seem to depend more on will and commitment, rather than the need for more funding or expanding beyond existing technology, both encouraging and surely befuddling. Please enjoy this issue of the Socially Inspired Investor digest/podcast and pass it along. When it comes to investing for the future remember it’s your money and your choice