Sureita Hockley | Socially Inspired Investor

Based on the significant legislation recently passed by Congress that focuses on climate action. “What’s in the bill?”, “What does it allow us to do?” and “What still needs to be done?”

Posted on 02.03.2102.03.21 by Sureita Hockley

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

QUESTION”What’s in the bill?”, “What does allow us to do?” and “What still needs to be done?”

ANSWERBolor-Erdene Tumurchudur – Ubik Group Director of Partnerships

ANSWERAs an investor, it is important to understand energy and infrastructure-related investments are long-term investments. Thus, the bill could be higher in the short-term, but over time it will pay back. It will allow the investors to contribute to the decarbonization effort directly, and the health of the population indirectly. This also helps investors to choose research and development of renewable energy, battery storage, water management efficiency (all types of energy (including nuclear energy) and are water inseparable) and related long-term projects.

ANSWERWe also need to collaborate with city mayors, lawmakers, and other organizations to create a clear systematic structure to decrease HFC and GHG emissions. Moreover, investors need to pay attention to left off industries like nuclear Energy and their safety, specifically nuclear waste, etc. On top of that, it’s significant to push energy efficiency-focused policies and projects.

QUESTION”What’s in the bill?”, “What does allow us to do?” and “What still needs to be done?”

ANSWERNimet Vural, Freelance Sustainability, Accountability and Corporate Governance

ANSWERThe Bill is aggressively fighting both the Pandemic and Climate Change. The Investment Industry seeks returns as its primary objective and today some of the most convincing opportunities for growth and returns come from a transition to a more sustainable economic model that both harnesses and preserves nature. We need to see Innovation and creativity among the Investors looking to address Social Inequalities on a more Systemic basis.

QUESTION”What’s in the bill?”, “What does allow us to do?” and “What still needs to be done?”

ANSWERPaul Ellis, Founder of Paul Ellis Consulting & The Sustainable Finance Podcast

ANSWERCombining the economic cost of physical climate risks from floods, fires and storms, with the economic impact of transition climate risk like the COVID-19 pandemic, has brought the U.S. Congress together in a rare bipartisan moment related to energy policy. I expect to see more of the same as both physical and transition climate risks continue to multiply in the next two decades. And investors will play an increasingly important role in this process by voting with their retirement assets, investing in companies that produce and use clean and renewable energy products and services.

QUESTION”What’s in the bill?”, “What does allow us to do?” and “What still needs to be done?”

ANSWERLebo Mahlare, Renewable Energy Finance

ANSWERThis is a significant development in the fight against climate change but we still have much more to do given that models still require less than a 2 deg C rise in global temperatures, especially in specific regions of the world.

Legislation bill passed by Congress – What is the Bill? What does it allow us to do? What still needs to be done?

Posted on 02.02.2104.14.22 by Sureita Hockley

…When day comes, we step out of the shade,
aflame and unafraid,
the new dawn blooms as we free it.
For there is always light,
if only we’re brave enough to see it.
If only we’re brave enough to be it.

– Amanda Gorman, National Youth Poet Laureate
Excerpt from “The Hill We Climb” (read at the 2021 Biden inauguration)

In this issue #9 of the Socially Inspired Investor Digest and companion Podcast, we look at how – in an unlikely bi-partisan way – Congress steps up to make an unequivocal stance supporting the fight against climate change, and significantly puts up billions to also make it a meaningful action for jobs and economic recovery. Funding for renewable energy and credits to consumers could make this legislation a critical turning point.

But wait, there could be more! In addition to re-joining the Paris Accord, President Biden is proposing more clean energy enhancements in his $1.9 trillion COVID relief proposal. We shall see what the final bill will include but we believe many of the provisions around environmental sustainability haves a decent chance of surviving.

In our SPOTLIGHT ON section, we asked our team of industry experts to weigh in on the key take-aways from the legislation – How it helps and what is still needed. The tie-in to job creation seems to be a critical component in building support.

But here is the point for investors. Criteria historically used to evaluate investment options are changing. Desmond Wheatley who is featured in this month’s Podcast points out that an additional factor to consider is companies meet the “inevitability” of change. That sounds right as we seem to be in the golden age of companies of all types publicly announcing their commitments to achieving net zero carbon.

Many companies will need to adapt or unfortunately see their relative value diminish if they cannot keep up. Portfolios should be evaluated not only on previous results but also where in the changing landscape find these companies in 10, 20, 40 years.

The environmental provisions in the December, $900 billion stimulus bill includes $35 billion funding for renewable technology and energy efficiency.

$4 billion for solar, wind, hydropower and geothermal research and development.
$1.7 billion to help low-income families install renewable energy sources in their homes.
$2.6 billion for the Energy Department’s sustainable transportation program.
and $500 million for research on reducing industrial emissions.

It also authorizes $2.9 billion for the Advanced Research Projects Agency-Energy, a program that funds high-risk, high-reward research.¹

Welcome to 2021. Time to freshen up those portfolios.

¹ https://www.washingtonpost.com/climate-solutions/2020/12/21/congress-climate-spending/

JOBS – How is the nature of work changing as companies move toward a more socially and environmentally sustainable world?

Posted on 12.21.2004.14.22 by Sureita Hockley

The best way to predict the future is to create it.
– Abraham Lincoln

Under the radar for many, and most recently obscured by the ravages of Covid-19, the landscape for future jobs may be dramatically improving for the long term.

Green and sustainably oriented companies are not only delivering on their ESG mandate, but other tangible dividends are providing a shot in the arm for the American worker and the communities that sorely need new purpose. We can see now how the promise of a new infrastructure for a new age goes way beyond merely saving the planet.

According to the U.S. Bureau of Labor Statistics (9/20) two of the three fastest growing occupations projected over the next 10 years are jobs that didn’t even exist not too long ago:

#1 – Wind Turbine Service Technicians; and

#3 – Solar Photovoltaic Installers

(Nurse practitioners was #2)

Jobs like these in sustainably oriented companies now represent a powerful new resource for the middle class, with both white and blue-collar standing to benefit, mostly with good pay and benefits. And just in time, as jobs are being lost in the traditional energy sector due to technology and mechanical advancements. And investors who are lining up are winning as well.

In this issue of the Socially Inspired Investor (SII) we continue to focus on how the nature of Work and Jobs is changing. In our Podcast his month our host Pat O’Neil talks with Yana Kravtsova, Executive Vice President, Communication, Public and Environmental Affairs at Enviva LP., a leader in alternative energy producing wood pellets. Enviva is an example of a company that is providing new jobs, retraining opportunities and even conversions of old coal-based power plants.

The Spotlight on section poses the question to leaders in the ESG Investing community, “How is the nature of work changing as companies move toward a more socially and environmentally sustainable world? “, and our Basic Investing section continues to build your foundation.

We wish you a happy and healthy New Year.

How is the nature of work changing as companies move toward a more socially and environmentally sustainable world?

Posted on 12.21.2002.01.21 by Sureita Hockley

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

QUESTIONHow is the nature of work changing as companies move toward a more socially and environmentally sustainable world?

ANSWERChristina Shim, Managing Director, Commercial Innovation Practice, Americas at Palladium: Make it Possible

ANSWERIt is impossible to untangle this with the changes we’ve all experienced as a result of the pandemic. The nature of ‘what’ work is vs ‘how’ work is accomplished has fundamentally shifted in the past 10 months. As companies continue to evolve towards sustainability progress for trends and reasons beyond Covid, the essential mandate of their business and model is slowly forced to adapt as well. This includes the need to integrate greater diversity and inclusion in the workforce. It includes understanding and creating transparency and traceability in supply chain. At its essence, it’s about embedding sustainability – financial, social, environmental – all into the core of the company’s strategy and operations. This is no longer a nice to have – it’s a must have.

QUESTIONHow is the nature of work changing as companies move toward a more socially and environmentally sustainable world?

ANSWERRabo Garba, Senior Consultant at Ernst & Young

ANSWEREvents of 2020 accelerated trends in sustainability and technology adoption. Companies and individuals seem to have a greater focus on systemic issues that affect society and the environment. Demand is developing for individuals that understand complex supply chains and can identify innovative business models, partnerships, and technology applications to extend decarbonization efforts beyond a company’s operations. Manipulating and understanding large data sets is critical and must be combined with new insights to solve structural problems created by our current systems.

ANSWER(These remarks are solely my own. Not representative of my employer or any other affiliated institution or organization)

QUESTIONHow is the nature of work changing as companies move toward a more socially and environmentally sustainable world?

ANSWERPaul Ellis, Sustainable Finance Consultant & Host of The Sustainable Finance Podcast

ANSWERThe COVID-19 pandemic has exposed the changing nature of work in the U.S. economy as a physical and transition Climate Risk with far-reaching social and financial implications. Front-line healthcare and service workers are at significantly higher physical risk while earning less for their labor than those of us in WFH jobs with more flexible childcare and family care options. Many public/private sector companies are struggling to retain experienced staff, with some better prepared than others to meet these challenges. In 2020 the pandemic has sent a “loud and clear” message regarding the need for more and better public/private policy partnerships regarding the nature of work if we want to “Build Back Better”.

QUESTIONHow is the nature of work changing as companies move toward a more socially and environmentally sustainable world?

ANSWERDoug Willmore, Chief Executive Officer – World Tree

ANSWERAt World Tree, we have found that our mission and values have become more important than ever. We have many potential employees that search us out specifically because of what we do and how we are doing it. Finally, I think the rest of the world is moving to what World Tree has been for many years – a virtual company. While we have an office in LA, almost all of our employees work virtually around the hemisphere. Being able to live wherever they want, work wherever they want, and not having to commute is a huge attraction to current and potential employees.

JOBS – As ESG considerations become more widely adopted, what’s the realistic impact on current jobs and future job opportunities?

Posted on 11.24.2004.14.22 by Sureita Hockley

You may not control
all the events that
happen to you
but you can decide
not to be reduced
by them
– Maya Angelou

Essentially the debate over how far and how fast we should move toward achieving global sustainability – taking the steps needed to slow down and perhaps even reverse climate change – hinges for many and most passionately on the perception of the impact on JOBS, both current and future.

Although the discussion has been framed as a zero sum or win/lose proposition – expedient to politicians – most experts agree that this is simply a false choice. Progress on green initiatives does not necessarily need to mean a mass loss of current JOBS. We thought it would be important to explore this topic with those closer to the work in this our 7^th edition of the Socially Inspired Investor. We will continue the focus on JOBS as well in the upcoming 8^th edition since the topic is rich with content and purpose.

As ESG considerations become more widely adopted, what is the realistic impact on current JOBS and future JOB opportunities? Responses from our contributing experts found in the SPOTLIGHT ON section to this question seem to agree that technology and artificial intelligence as well as post-pandemic realities have already begun the transition.

In the accompanying PODCAST hosted by Pat O’Neill, Peter Lupoff, CEO of Net Impact tells us about how companies are already working to provide a soft landing for many of their workers while redefining the future of work. No doubt you will be surprised at some of the companies in the forefront of taking on this challenge.

Please enjoy this issue and please also pass it along to others who may have an interest in socially responsible investing.

As ESG considerations become more widely adopted what’s the realistic impact on current jobs and future job opportunities?

Posted on 11.24.2011.24.20 by Sureita Hockley

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…

QUESTIONAs ESG considerations become more widely adopted what’s the realistic impact on current jobs and future job opportunities?

ANSWERNimet Vural, Student at Aerospace and Machine Learning Field

ANSWEREnvironmental trends affect the world of work directly, just as the world of work affects the environment. The future of work cannot be conceived as independent of its effects on the natural world. Environmental degradation destroys work opportunities, worsens working conditions and negatively impacts the social fabric of society. So, any efforts to achieve sustainability will entail a structural economic and government policy transformation through global frameworks like the UNSDGs. Such a transformation can also result in millions of jobs through the establishment of sustainable national and regional public policy development.

QUESTIONAs ESG considerations become more widely adopted what’s the realistic impact on current jobs and future job opportunities?

ANSWERJuan Adorno, MBA, Strategic Partnerships at Mascoma Bank

ANSWERThroughout my time in the Investments industry from 2011-2019, there was a notable uptick in ESG jobs across mid and large firms, especially throughout the bull markets, as ESG retail capital flows increasingly gained momentum. Any assessment of job markets in 2020 is muddled by the pandemic, but I’ll share that more broadly speaking, the question of the connection between ESG trends and impact on job markets is relative to geography, industry, and other dimensions. As I see it, ESG is a long-term evolutionary trend, slowed by cultural pressures for preservation and conservation, at the expense of innovation: the SEC’s 2020 guidance on ESG in 401(k’s) as a case in point.

ANSWER(These remarks are solely my own. Not representative on Mascoma Bank or any other affiliated institution or organization)

QUESTIONAs ESG considerations become more widely adopted what’s the realistic impact on current jobs and future job opportunities?

ANSWERKhyati Thakkar, Senior FP&A Associate, Brookfield Renewable

ANSWERDue to persistent pressure from investors to integrate ESG considerations into an organization’s long-term strategy, firms are increasingly looking to expand the scope of current jobs and future opportunities. Those with passion and a skill set for sustainability will be valued and sought after. I can already see the difference on my current role where with my educational background in finance and sustainability, I have helped build my firm’s ESG policy and the Green Finance Framework in addition to my regular job of portfolio management.

QUESTIONAs ESG considerations become more widely adopted what’s the realistic impact on current jobs and future job opportunities?

ANSWERCH Herbert Consulting, President

ANSWERThe loss of traditional jobs requires basic changes in economic and governing systems because for the first time in history the middle class must adapt to a technological job market that leaves too many with no work. Huge population sectors will be without work and there will be no cash flow to maintain infrastructure and govern as the civilized world progresses toward Developing country conditions. Corporate and political leadership is entrenched and will not and cannot plan, manage and implement the changes needed. Developing countries mirror the future for all unless the financial sector assumes leadership, describing the problem and what can be done about it.

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

Posted on 10.27.2001.08.21 by Sureita Hockley

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

Posted on 10.27.2004.14.22 by Sureita Hockley

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 6^th 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.

“What progress in ESG investing inspires you today?

Posted on 09.21.2009.21.20 by Sureita Hockley

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…