by Deborah Nason, CNBC
Another option is YieldCos, according to Michael Kramer, managing partner and director of research with Natural Investments in Kona, Hawaii.
″[These] are essentially renewable energy utilities, often tied to the grid,” Kramer said. “They are lower risk than, say, companies that manufacture equipment.
Americans will soon vote in an election with unprecedented stakes. The outcome of the presidential and Congressional races will determine whether this country continues its rapid descent into xenophobia, isolationism, and climate nihilism—or whether we open a doorway of possibility to a better future.
Natural Investments is involved in a range of efforts with our industry colleagues that facilitate positive economic, social and environmental change, including shareholder engagement with companies and public policy advocacy. Natural Investments regularly engages in corporate and political advocacy to protect ecosystems, defend human rights, and advance racial and economic justice. In 2019, we participated in more than 30 environmental, social, and governance activities on behalf of investors on issues ranging from gun violence and shareholder rights to climate change and reproductive rights.
2019 Social Impact Report
In the last year, the climate crisis seems to have finally gotten its due in mainstream culture. The deniers are still dishing distractions, but the voices for change are now front and center. Perhaps Greta Thunberg’s sailboat journey to the United Nations was the turning point? Was it the asset manager BlackRock finally making a public declaration on the urgency of sustainability? Or maybe Amazon’s Climate Pledge to achieve “net-zero” carbon emissions by 2040? Certainly, the wildfires, floods, and sixty-degree weather in Antarctica make it harder to pretend the climate crisis hasn’t begun. Whatever future historians peg as the tipping point, it’s clear that we must mobilize a massive change in our entire global economy.
Natural Investments continues to purchase offsets for the carbon impact of our business activities. Our primary carbon impact comes from air travel for conferences and meetings.
The U.S. stock market dipped notably in early August and exhibited considerable volatility throughout the month. The market drop and subsequent instability, which stretched into September, were related to concerns about growth prospects for the U.S. and global economies. These concerns were validated by the Fed’s decision to cut interest rates in late July—the first rate cut since the Great Recession.
For over twenty-five years, Green Century Capital Management has been a leader in shareholder advocacy. This year, Green Century focused on two themes: sustainable agriculture and climate change. As part of its climate change advocacy, Green Century has been diligently working to promote plant-based proteins—as well as the preservation of tropical forests, the reduction of food waste, and a renewable energy transformation.
Plant-based proteins have received media attention in recent years due to the growing awareness that meat production is one of the main drivers of deforestation in the tropics. Globally, the production of livestock for human consumption generates 14% of the emissions that cause climate change.
By working with investors and agricultural companies,
One year ago, in January 2018, three citizens locked themselves to the front entrance of a downtown Wells Fargo bank branch in the city where I live and work, Duluth, MN. The protesters prevented business from being conducted at the branch for three hours. The reason for their actions were simple and well-articulated: they were protesting Wells Fargo Bank’s financing of Enbridge Corporation Line 3, an oil pipeline that runs 1,097 miles from the tar sands of Edmonton, Alberta, to the Enbridge oil storage facility that sits about a mile from the south shore of Lake Superior, just a few miles away from the site of the protest. Environmentalists have deep concerns about the climate impacts of the tar sands, as well as the threat the pipeline poses to local waterways and Indigenous land rights. The police eventually came to the branch to remove the locks and arrested the protesters. All three were charged with misdemeanor trespass, disorderly conduct, and obstruction of justice.
A little over one year ago, President Trump reaffirmed his intention to withdraw the United States from the Paris Climate Accord. As if on cue, an iceberg the size of Delaware broke away from the Larsen C ice shelf in Antarctica, where temperatures have risen nearly five degrees on average over the past few decades. And Hurricane Harvey, Hurricane Maria, and Hurricane Florence wrought unprecedented destruction in rapid succession upon Texas, Puerto Rico, and North Carolina, respectively.
Scientists and researchers are still working to measure the astounding human and environmental toll from the hurricanes, which are considered to be climate disasters due to their intensity. Hurricane Maria resulted in nearly 3,000 deaths and left Puerto Rico without electricity, telecommunications, or water services for months. Hurricane Harvey caused at least 100 recorded releases of toxic chemicals in a region with 500 chemical plants and 10 oil refineries. NASA’s satellite images of North Carolina after Hurricane Florence show inky black currents of organic matter—mostly sewage from massive chicken and hog farms in the area—seeping into the blue waters of North Carolina’s coastline.
Recent catastrophes provide an opportunity to practice a future-planning mindset.
It’s obvious that significant Earth changes are occurring these days—in the past month alone, we’ve seen several major earthquakes, ravaging fires, devastating hurricanes, and torrential flooding. When we wrote The Resilient Investor a few years ago, we anticipated future volatility and uncertainty due to climate change and other factors, but we didn’t know how immediately prescient our insights would be. The September trifecta of superstorms in the Atlantic provided a stark reminder that as resilient investors, we must incorporate disaster mitigation, in addition to disaster preparation, into our financial analysis and planning—for there are few places in the world that will be truly “safe” from the impacts of climate change.
To this end, our top priority must be a bold adjustment in how we produce and consume energy. The good news is that businesses and local governments had already begun to take steps in this direction before our current, climate-change-denying Administration took power. In fact, despite a near-total absence of leadership by the federal government, Americans are on target to meet he 2025 CO2 reduction targets set by the Paris agreement (1800 million tons of CO2); by the end of 2016, we were halfway there. Carbon-based utility generation is down 25% already, ten coal plants are closing, and many states are setting aggressive renewable energy goals.
Both stock and bond markets finished the quarter with solid gains. Large company stocks in the U.S. were up 3.1%, while smaller companies gained 2.5%. Foreign stocks were in the black as well, up 6.1%. Bonds advanced 1.4%, even as the Fed raised interest rates.
Federal Reserve officials forged ahead with another interest rate hike in June, the third in six months, and maintained their outlook for one more hike this year. The Fed announcement struck a careful balance between showing resolve to continue increasing interest rates toward more historically normal levels, and acknowledging concern over unexpectedly low inflation this year. While we may think of inflation as a bad thing, the Fed sees benefits in it—in the right measure.