What are cities doing to become more energy efficient and sustainable? And how are they paying for it?

We reached out to leading experts in SRI to find out their responses, and this is what we found…

QUESTIONWhat are cities doing to become more energy efficient and sustainable? And how are they paying for it?

ANSWERDaria Bogatyreva, Head of Canadian Sustainability and Outreach, Pappus 101

ANSWERHere is my vision of what cities are doing to become more energy efficient and sustainable and how they are paying for it. I observe that cities are generating opportunities to make a quantum leap in energy-efficient infrastructure. To accrue energy efficiency, Urban planners assess wards rather than distinct buildings according to a consistent strengthening of guidelines for the placement of green facilities and DE&I traction planning. There are several ways that cities are paying for strengthening infrastructure performance, including PPPs (in transportation and water & sanitation services provision), subsidies, revenue from utilities, and the funds circulating from offsetting payments.

QUESTIONWhat are cities doing to become more energy efficient and sustainable? And how are they paying for it?

ANSWERSarah Welton, Expert in Social & Environmental Sustainability, NYC

ANSWERAcross the United States, cities and localities are taking a variety of approaches toward combating climate change, especially when it comes to one of the primary culprits of carbon emissions: buildings. This bespoke approach can be a headache for national, or even regional, real estate owners, but it also allows some cities, like NYC to stand out as sustainability leaders. Most notably, New York recently passed Local Law 97, which penalizes large emitters, including the LEED Platinum BofA Tower, which is estimated to pay nearly $2.5 million dollars per year for its carbon emissions. In an effort to reduce carbon in the atmosphere, the city is offering programmatic and financial support for property-level assessments, retrofits and efficiency improvements like green roofs and solar panels. Though NYC is criticized for working too slowly on cleaning up the grid or installing EV charging stations, New Yorkers are responsible for fewer carbon emissions than most Americans, even after death.

QUESTIONWhat are cities doing to become more energy efficient and sustainable? And how are they paying for it?

ANSWEREugenio Liu, ESG Strategy and Development & Sustainability Consultant

ANSWERCities need a catalyst to get things rolling, and often times it is the government that needs to take on that role. In the case of Santiago (Chile) where I hail from, our cities are tackling decarbonization from three very specific areas: Clean Transportation, through sustainable mobility and public EVs; Energy Efficiency, from subsidies to vulnerable sectors; and Green buildings. These projects which have added up to approx. $8.5 Billion are being financed through green bonds and sustainability bonds successfully placed and oversubscribed in international markets. In fact, Chile was the first country in the American continent to issue a green bond.

QUESTIONWhat are cities doing to become more energy efficient and sustainable? And how are they paying for it?

ANSWERMaria Stoica, Environmental & Sustainability Advisor, Financial Conduct Authority (FCA)

ANSWERThe cities accelerate the revision and allocation of development permits that include energy efficiency requirements among other environmental and social aspects. So, businesses are delivering energy efficiency but cities are facilitating that opportunity.

ANSWERNonetheless, cities assess the energy efficiency of the local built environment and send grant schemes information to property owners and tenants in mapped low energy efficiency buildings.

QUESTIONWhat are cities doing to become more energy efficient and sustainable? And how are they paying for it?

ANSWEREve Zoma, ESG/Climate Analyst, APICIL Asset Management

ANSWERThe carbon footprint of cities and urban areas accounts for nearly 70% of global carbon emissions. From this observation, the N°11 of the Sustainable Development Goals calls on cities to trigger the necessary transformations to become more energy efficient and sustainable. To meet this goal, cities are increasingly turning to cleaner energy sources such as solar power. They are redefining themselves by becoming smart cities and creating green spaces to reduce pollution. Furthermore, more and more eco-districts and coworking spaces are being created in cities, facilitating telecommuting and relieving congestion in certain areas. These actions, allowing cities to meet the dual climate objective of reducing greenhouse gas emissions and adapting to climate change, require massive investments. For this purpose, cities usually use credits or loans (green bonds, bonds, bank credits, or others). In addition to the substantial investments to be made, some cities have to face technical difficulties.

What are cities doing to become more energy efficient and sustainable? And how are they paying for it?

I see trees of green, red roses too, I see them bloom for me and you and I think to myself, what a wonderful world.

– What a wonderful world, Louis Armstrong

As we continue to face the challenges of climate change, it is becoming increasingly clear that we need to take action to create more sustainable and environmentally friendly cities. Green cities are the way forward, and they offer a range of benefits for both people and the planet.

In this issue, we explore the concept of green cities and what it means for urban living. From green roofs and walls to sustainable transportation and renewable energy, we look at the innovative solutions that are being implemented in cities around the world.

We also examine the role of urban planning and policy in creating green cities, and the challenges that need to be overcome to make them a reality.

Join us as we explore the exciting possibilities of green cities and the positive impact they can have on our future.

How Do Socially Inspired Investment Themes Differ And Why Is That Important?

Same Same, But Different

a phrase perhaps commonly heard in Thailand meaning similar enough but still not the same, requiring more questions and examinations. Diversity training tool.

Socially Inspired Investing is not as easy as it looks.

Aside from the technical or quantitative aspects, is the personal desire to avoid or minimize certain areas of concern on the values side – and that makes it extra demanding. There is no right or wrong – it’s just personal!

If it were easy, everyone would do it and if you look at the proliferation of “ESG” offerings by just about every investment house in recent years you might just come to that conclusion. But these investments are not all the same and we thought it would be helpful to examine the different kinds of social investing through the insightful comments of our brilliant contributors and a fascinating Podcast with our guest Gabe Rissman – Cofounder and President at YourStake.

Be it SRI, ESG, Impact Investing, etc. know that these are all different. And yet, in many cases, investment firms many times irresponsibly use these terms almost interchangeably. Even the U.S. Securities and Exchange Commission has felt it necessary to step in – putting the investment community on notice that they must do a better job of educating investors. 

What do the ratings really mean and is that all you should consider. How perfect can you get, or not get, trying to elevate your portfolio to align more with your personal values and concerns. Perfection is elusive and subjective – must that be the requirement? Some things to think about.

Enjoy this next edition of The Socially Inspired Digest and Podcast. It’s been fascinating for us. Feel free to pass it along.

How Do Socially Inspired Investment Themes Differ And Why Is That Important?

We reached out to leading experts in SRI and ESG to find out their responses, and this is what we found…

QUESTIONHow do Socially Inspired investment themes differ and why is that important?

ANSWERTonderai Leonel Njowera, Civil Engineer, Sustainable Finance, Strategy and Risk Analyst

ANSWERSocial investment themes differ in materiality, asset classes such as education, health, agriculture, water supply and sanitation, either of both climate change adaptation or mitigation, to name a few. This can be either in terms of investment technology or even investment in a particular social asset class or even non-investment. For example, there will be investment in social housing in some geographies, and non in other, or the level of healthtech/edutech will be lower in one region than the other.

ANSWERThese variations are key because they allow contextual investment, which allow real social challenges to be addressed through relevant asset solutions, putting investment resources of time, money and human capital, to efficient and effective use.

QUESTIONHow do Socially Inspired investment themes differ and why is that important?

ANSWERLiana Le, Energy Transition Analyst and Niklas Huppmann, Business Strategy at Kayrros

ANSWERESG or socially inspired investments not only allow finance socio-ecological progress but also create long-term interest and contingency to ultimately move key issues at the core of political and economic considerations. As different issues become more apparent through events and disasters, having separate themes allow for a more effective allocation of funding to drive change in an organized way. The process begins with policy and trickles down to the cause itself. For example, with the pressure of climate change rising and the influx of sustainable investments following — whether through government organizations or third parties backed by large firms, new policies are made throughout the value chain. This top-down approach makes it so that money is not the only incentive — and stakeholders not only can take a hedging position in the short term but trust it will make an actual impact in the long run. 

QUESTIONHow do Socially Inspired investment themes differ and why is that important

ANSWERPersia Navidi, Partner, Hicksons Lawyers

ANSWERSocially inspired investment themes are becoming more and more prevalent and differ from other themes in that they focus on and consider the core of all businesses – their people. Why are they important? They are, arguably, the way of the future. Companies who fail to address issues such as diversity and inclusion, social justice and the “people” element of business may risk falling behind because investors, insurers, consumers, employees, clients and the wider community seek more transparency and evidence of socially inspired action and investment. While it may be difficult to define, assess and measure the “S” in ESG, we are increasingly seeing company directors and their insurers recognise the significance of socially inspired investments, leading to proactive steps being taken to measure and invest in this space.

Renewable Energy Getting Cheaper Every Day – What is The Potential Impact For Consumers and Investors?

The best friend of earth of man is the tree.

When we use the tree respectfully and economically,

we have one of the greatest resources on the earth.

– Frank Lloyd Wright

Some say we’ve arrived at the critical junction where fossil fuels – the old gunslinger, and alternative energy, the sleek new upstart, meet for a winner take all shootout.  But in fact, if we are honest, it’s not really like that – both are needed at this time to satisfy global demand. But the trend can’t be ignored and the related investment opportunities are becoming more clear.  

What makes it more competitive is the dramatic reduction in the cost of alternative solutions, as well as the promise of new tax incentives. Research from Our World Data shows that the cost of renewables has drastically fallen from 2010 by over 80% with offshore wind coming on as one of the strongest difference makers. According to the International Renewable Energy Agency (IRENA) renewables are now undercutting fossil fuels as the world’s cheapest source of energy.

This issue of the Socially Inspired Investor Digest and Podcast examines the progress made in the new economics of sustainable energy.  We think you’ll enjoy hearing from our PODCAST guest Peter Fusaro a well-regarded expert in the field.  We also thank our SPOTLIGHT contributors who share their views on the topic.

Enjoy this issue.

Renewable Energy Getting Cheaper Every Day – What is The Potential Impact For Consumers and Investors?

We reached out to leading experts in SRI and ESG to find out their responses, and this is what we found…

QUESTIONRenewable energy is getting cheaper every day – What is the potential impact for consumers and investors?

ANSWERNimet Vural, Sustainability, Accountability and Corporate Finance

ANSWERThe domination of Fossil fuels around the World is changing dramatically, instead, Renewable Energies are getting more acceptable. In most places around the World, Renewables are cheaper than Fossil Fuels.

ANSWERWhy can this be? Why do we see that Renewable Energy Costs are declining so fast? There are multiple reasons for it.

ANSWERFirstly, the cost of Fossil Fuel and Nuclear Power depends on the fact that the prices of Fuel mostly burn and the Power Plants’ operational costs. On the other hand, the Renewable Energy System is completely different compared to Fossil Fuels. Their operational costs are not only low but at the same time, they don’t pay anything for fuel.

ANSWERWhat is more, the role of the Portfolio Standards requires Electric Utilities and other retail Electric providers to supply a specified minimum percentage of Customer demand with eligible sources of Renewable Electricity. Several studies show that Renewable Portfolio Standards (RPS) help the stringency, and demand elasticity influences only the magnitude of the price effect. 

QUESTIONRenewable energy is getting cheaper every day – What is the potential impact for consumers and investors?

ANSWERJack Casady, Director of Marketing at YourStake

ANSWERWe’ve seen many investors want to align their portfolios with renewable energy and renewable technologies to help create meaningful impact on the planet. With the high cost reduction in these renewable energy technologies, not only do they often make better investments, but many companies are shifting their energy suppliers to these renewable sources and lowering their carbon emissions all with lower costs.

QUESTIONRenewable energy is getting cheaper every day – What is the potential impact for consumers and investors?

ANSWERCarly Turner, MSc Candidate Sustainable Resources: Economics, Policy & Transitions at University College London

ANSWERRenewable energy is getting cheaper which indicates the viability of decoupling economic growth and environmental degradation in the form of increasing carbon emissions. In my opinion, leaning into natural assets such as wind and solar energy is a far more viable strategy to meet decarbonization targets than far-off technologies such as Carbon Capture and Storage (CCS). The decreasing costs of these technologies are indicative of system change which is a product of shifting consumer demand, policy reform, and new business models, all of which may be interpreted as a signal that economies are modernizing. There is a tremendous opportunity for investors to further this change by investing in renewables and continuing to scale operations to bring down costs so that consumers have access to clean, reliable, and affordable energy and therefore, consider renewable energy a norm rather than an alternative.

QUESTIONRenewable energy is getting cheaper every day – What is the potential impact for consumers and investors?

ANSWERRachel “Indy” Svetanoff, Impactvest Podcast Host

ANSWERElectricity is the bedrock for modern society, and renewable energy is a sign of society advancing forward with its collective consciousness. Not only does it help restore the natural world, but renewable energy is also an opportunity to shine a light on those left in the dark, namely the underserved and marginalized communities. With costs lowering, there is a historic opportunity to reduce multidimensional poverty in a way that uplifts the quality of life for all of us.  

QUESTIONRenewable energy is getting cheaper every day – What is the potential impact for consumers and investors?

ANSWERShawn Cain, Finance Student at Suffolk University “23

ANSWERRenewable energy groundwork has been happening for decades but now we’re seeing more and more adoption and investing across the board. New financial tools like green insurance and green bonds are helping get impactful projects started. Since every industry is pricing in climate change and taking steps to reverse it, the renewable energy industry is coalescing faster than ever.

QUESTIONRenewable energy is getting cheaper every day – What is the potential impact for consumers and investors?

ANSWERChristianne Carin, Managing Director, CEO, Stellars LLC, | ESG Impact-Investment Management | Serial Entrepreneur & Inventor

ANSWERFocused impact-investments in innovative on-site and off-grid renewable power generation solutions for communities, agriculture and onshore manufacturing is significantly cheaper than using fossil fuels to produce electricity while also reducing omissions. Proof: According to the EIA’s chart U.S. electricity flow, 2021, fossil fuel operators consumed more energy to generate electricity than the energy provided by their fossil fuel inputs due to their high conversion losses. This loss was supplemented by renewable energy and nuclear electric power, which also provided all the energy required for the generation of electricity for end users.

QUESTIONRenewable energy is getting cheaper every day – What is the potential impact for consumers and investors?

ANSWERFranz Hochstrasser, CEO and Co-Founder, Raise Green

ANSWERWith dirty fossil fuel prices spiking at the pump and in power plants, and solar and wind surpassing gas as the cheapest form of energy in most places across the world, it has never been a better time to make your money do good by investing in the clean energy future. For those who are overwhelmed by the climate crisis and tired of being told to recycle and petition their way out of it, Raise Green is the community finance platform that enables every American to join the ranks of the heroic entrepreneurs and innovators powering the transition from dirty to clean energy.

A New Era in Company Reporting – What Does it Mean?

I’ll tip my hat to the new constitution

Take a bow for the new revolution

Smile and grin at the change all around

Pick up my guitar and play

Just like yesterday

Then I’ll get on my knees and pray

We don’t get fooled again

– Song by The Who. “Won’t get fooled again” from the album Who’s Next 8/71

Caveat emptor (let the buyer beware)

A new indicator that ESG has matriculated into the mainstream investment universe is the seeming endless, perhaps counterintuitive, range of companies who suddenly proclaim they have now drunk the Kool-Aid and are now or soon to be, cleaner, fairer, and overall committed to being good citizens of the sustainable world – if not potentially our saviors.

But beware the ESG industrial complex. Is there a watchdog? And if so, why should we believe them?

This edition the Socially Inspired Investor Digest/Podcast attempts to touch on the very complicated and evolving subject of ESG ratings.  Without the right data you, the investor, really are challenged to make informed decisions on which investment options most closely align with your values. 

Will we ever get to the point where respected rating agencies give us a meaningful measure of how a company meets a generally accepted ESG standards?  Respectfully – that’s a hard one to absorb. It’s probably not even possible as much of it may be subjective. But some guidance is better than no guidance. Recently the SEC proposed significant criteria for companies to include relating to their disclosure on environmental impact and risks associated with them.

Ratings services nevertheless decided it’s worth their time and capital to develop their own rating systems. And that is actually a very good thing, even if imperfect. Like it or not, that’s part of the deal at this point, and that has to be ok with you. To make it even more bemusing is that most of the input for the data actually comes from the companies themselves.  

So, what are we to make of these rating agencies and the data they use? Is this the cavalry to the rescue? Or a concerted effort to fool us once again?

Our SPOTLIGHT ON question this issue posed to our panel of experts this question:
“It seems more expansive company reporting on sustainability factors creates a better business model – WHY?”

To help us further understand the ratings process we are fortunate to have Tamara Close from Close Group Consulting as Pat O’Neill’s special guest on our very interesting PODCAST

We hope you enjoy this important edition of the SOCIALLY INSPIRED INVESTOR DIGEST/PODCAST.  Since we first published – just as the COVID-19 pandemic began – we have seen tremendous progress being made in the investing community, as we inhabitants strive for a better, more sustainable future.   

Enjoy!

It seems more expansive company reporting on sustainability factors creates a better business model – WHY?

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

QUESTIONIt seems more expansive company reporting on sustainability factors creates a better business model – WHY?

ANSWERMarci Bair, CFP, Bair Financial Planning

ANSWERThe more ESG data a company has the better it can analyze that data and information that is pertinent to the success of their company. ESG data is critical for a company to know its sustainability score for the long-term health of their company. Shareholders are educating themselves on companies ESG scores and supporting those companies that are creating a better business model that supports diversity, equity and inclusion. Employees are also becoming more decerning on whether the company they work for shares their values and those companies with higher ESG scores will attract employees focused on the future and shared success of the company.

QUESTIONIt seems more expansive company reporting on sustainability factors creates a better business model – WHY?

ANSWERRebecca Self, Director of Sustainable Finance at South Pole

ANSWERComprehensive reporting on sustainability factors provides important insight on the drivers of value creation and destruction in an organization. This supports long-term strategic decision making, looking beyond simply the financial results alone. Creating a better long-term business model requires a good understanding of a company’s customers, employees and other key stakeholders. This type of sustainability information, as well as environmental metrics, give a rounded view of business impact and the future drivers of financial results.

QUESTIONIt seems more expansive company reporting on sustainability factors creates a better business model – WHY?

ANSWEREvan Zall, President, Longview Strategies

When you want to build a better engine, you poke at the gears, you examine how the pieces fit together, and you also step back to look at the machine in broader context. How can it safely perform at peak performance – for the operators, the mechanics, and everyone else involved? Same thing for expansive reporting on sustainability factors. The process that companies follow to develop accurate and authentic sustainability reporting uncovers operational risks, areas of strength, and pathways to improvement that were previously left unexplored. The resulting communications can drive greater trust in the brand, increase customer loyalty, enhance employee recruiting and retention, and boost shareholder confidence.

QUESTIONIt seems more expansive company reporting on sustainability factors creates a better business model – WHY?

ANSWERRabo Garba, Senior Business Development Manager – Silicon Ranch Corporation

I think the key to successful sustainability reporting is to focus on the most impactful areas within a company’s control without losing sight of overall improvement. When leaders can take an honest look at the entire organization’s role in society and where they want to go, sustainability can then be aligned and integrated throughout the organization. I believe this kind of focus leads to better execution.

QUESTIONIt seems more expansive company reporting on sustainability factors creates a better business model – WHY?

ANSWERVishal Thiruvedula, Head of Product at RS Metrics

ANSWERExpansive company reporting based on a standardized framework reduces the disclosure gap and the risk of misleading investors by providing precise information needed for investment decisions. Advances in geospatial technology such as satellites and sensors are giving companies additional tools to address the environmental disclosure gaps.

QUESTIONIt seems more expansive company reporting on sustainability factors creates a better business model – WHY?

ANSWERTea Ivanovic, Co-founder and Chief Operating Officer at Immigrant Food

Impact investors are no longer a niche in the financial industry, and companies are catching on to that new reality. Doing “good” doesn’t have to come at the expense of companies’ bottom line and businesses have a much larger responsibility than maximizing returns to shareholders: we are entering an era where stakeholders are the community at large, not merely investors.

QUESTIONIt seems more expansive company reporting on sustainability factors creates a better business model – WHY?

ANSWERAbass Bila, Doctorate Candidate, FMVA, CSMA, Asset Management

ANSWERCompanies’ sustainability factors disclosure exercise scarcely responds to the general call for more transparency in their reporting. Yet Transparency towards sustainability reporting represents a fundamental part of the sustainability process, which can ultimately enable innovation. Hence, expansive company reporting on key factors can help them bridge sustainability and profitability for better value propositions along with disruptive and long-term business models.

QUESTIONIt seems more expansive company reporting on sustainability factors creates a better business model – WHY?

ANSWERPablo David Necoechea Porras, Ph.D., ESG and Sustainability Senior Manager, Investor Relations, Televisa

ANSWERCompanies are increasingly reporting sustainability factors because environmental, social and governance (ESG) management is linked to greater value creation. A strong, consistent but ambitious ESG proposal can help companies access new market niches and expand in existing markets. In addition, ESG management can also significantly reduce companies’ operating costs through the efficient use of resources or the introduction of circular economy strategies in their value chain. Finally, a strong ESG management can help companies recruit, select and retain labor talent and enhance employer branding; which increases company productivity by promoting a sense of purpose and an organizational culture based on organizational development.

How Investing in Diversity, Equality and Inclusion (DEI) Makes a Difference

I can change the world, with my own two hands

Make a better place with my own two hands

Make a kinder place, with my own two hands

– Song by Ben Harper, Diamond on the Inside. 2003

Our new issue focuses on the importance of Diversity, Equity and Inclusion (DEI), the extent to which DEI is important for investors – and the potential risks of failing to take it into account when making investment decisions.

Doesn’t it seem like our understanding of the impact of DEI on investing should be further evolved by now? Our contributors within the SPOTLIGHT section of this digest point to a variety of ways that companies benefit from social oriented policies – and examples of some who have not.

They will discuss the impact of how a company treats its employees, its community and the fairness of how it utilizes its capital on its performance. Do DEI considerations affect every aspect of the business – supply chains, product or service strategies, logistics and human resources? Clearly, a Socially Inspired Investor will take DEI into consideration – perhaps as much as other ratios or quantitative factors. We know you will enjoy listening to our PODCAST guest, Lorraine Wilson, Chief Impact Officer and Head of ESG Methodology at Novata, who brings it all together.  

We hope you continue to benefit from the work we do here at the Socially Inspired Investor and our thought leadership. Please feel free to pass us along to others.

Welcome to 2022, everyone!

Does investing in Diversity, Equality and Inclusion make a difference and why?

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

QUESTIONDoes investing in Diversity, Equality and Inclusion make a difference and why?

ANSWERTonderai Njowera, Senior Partner, ImpactVest Global Advisory

ANSWERYes, it makes absolute sense! It aids in social esteem building, yielding collective long-term social, environmental, and economic dividends for those less exposed to opportunity and for the entire society, the global society.

QUESTIONDoes investing in Diversity, Equality and Inclusion make a difference and why?

ANSWERRupini Deepa Rajagopalan, Head of ESG Office at Berenberg

ANSWERIt is really simple in my view, investing in areas that have positive change indirectly also creates positive returns. Why? Because companies that advocate for issues such as social justice or promote social values, just means intrinsically they are built upon a culture that promotes long-term stability and even inclusion. Which is why I believe in investing in our values and coin the term “Finance with a heart”.

QUESTIONDoes investing in Diversity, Equality and Inclusion make a difference and why?

ANSWERKlarissa Nura, Research Analyst, ImpactVest Metrics

ANSWERIn a capitalist society, the allocation is the principle tool to create an equitable world for society and the planet where race, gender, economics and climate change is carefully considered.

QUESTIONDoes investing in Diversity, Equality and Inclusion make a difference and why?

ANSWEROlivia E. Knight, Racial Justice Initiative Manager at As You Sow

ANSWERInvesting in social justice is an investment in the future; corporations exist in a symbiotic relationship with the communities they serve and this relationship must be just and equitable to be healthy. Investors serve as a company’s liaison to the community and can exert a direct influence on corporate policies by promoting social justice. An investment in social justice is an investment in the community, and a healthy thriving community is essential to sustainable corporate success.

QUESTIONDoes investing in Diversity, Equality and Inclusion make a difference and why?

ANSWER Jennifer Priest, Content Strategist at Xactly Design & Advertising Inc.

ANSWERInvesting in social justice does make a difference…certainly to the lives of the people who benefit from improved situations. But there are also ripple effects into other areas. For example, in alleviating poverty, if individuals have more economic power they have more choice, and can buy products/services that are more sustainable vs what’s cheapest. Another thing to consider are the costs of allowing negative situations to continue (often hard to quantify, I admit).

QUESTIONDoes investing in Diversity, Equality and Inclusion make a difference and why?

ANSWERHarold Overholm, CEO at Alight

ANSWERInvesting in social justice can mean many things, but being from Sweden where education is free, I believe a fundamental investment in social justice is education accessible for all. The possibilities of childrens’ futures should not be dependent on for example the financial capability of their parents. Societies benefit from having that equal opportunity for higher education where everyone can go get a PhD (like myself)