In this Issue

…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/