America is at a "Sputnik moment", Energy Secretary Stephen Chu said today, and the government's next moves will determine whether the country leads the global cleantech race or loses it to China.
"This is the threat that I see," Chu said in a speech at the National Press Club in Washington D.C. "The U.S. still has the opportunity to lead in a new industrial revolution. It is a way to secure our future prosperity, but I believe our time is running out."
The timing of the speech was no accident. It came as new global climate talks got underway in Mexico and as President Obama prepares to sit down for talks with the new Republican leadership in the House of Representatives.
When the U.S.S.R. launched the Sputnik satellite in 1957, it shook the American industrial and military establishment; few knew the Russians were capable of such a feat. Eleven days afterward, President Dwight Eisenhower announced a new commitment to scientific R&D that led to decades of American technological dominance. Read More
Tuesday, November 30, 2010
UK: Faith-inspired ethical investing. A role model for the US?
Just Means.com, a UK-based website devoted to corporate responsibility and sustainability, reported on some new investment directives coming from organizations within the UK Christian community. Of interest to ALL investors was the principle underlying this effort: That churches and their members can wield great power to affect change with their investment dollars...
Earlier this month saw the return of National Ethical Investment Week, which wants Christians of all denominations to think before they invest. This year, the Ecumenical Council for Corporate Responsibility (ECCR) produced a special 'Action Guide for Churches' to encourage Christians to 'apply their principles through their savings and investment decisions'. It is intriguing, but perhaps not surprising, that churches have an interest in CSR...
The UK Sustainable Investment and Finance Organisation (UKSIF), has highlighted that churches have a history of using their spending power for positive change. This has included targeting unfair labour practices, combating apartheid in South Africa and tackling arms trading.
As a corporate body, focused on CSR, UK Christians, of all shapes and sizes, have more power than they think. The latest figures available from the Church of England show that the church commissioners manage £4.4bn of assets. And that is only the corporate funds of one part of the Christian church. The combination of every denomination, and each churchgoer, focussing their funds on ethical investment would have a powerful impact on the market.
A survey, conducted by YouGov and released as part of National Ethical Investment Week this year, showed that there is a growing appetite for green and ethical options, especially among those aged 35 and over. More than half (54%) of all GB adults with investments want to make money but also to make a difference.
However, the financial services industry and even those companies with a track record in CSR seem to be missing a trick in marketing their green and ethical financial options. More than four in 10 (43%) of all GB adults remain unaware that they have green and ethical options on a wide range of financial products from cash ISAs and funds, to mortgages and pensions.
The survey, of 2,700 UK adults, showed that people aged 35 and over are more concerned about creating a sustainable future than younger adults, busting the myth that the younger generation tends to be more green and ethical.
When it comes to savings and investments, more than half (58%) of over 55s and (54%) of those aged 35-54 want to make money and a positive difference to the world with their investments, compared to one in three (33%) 18-24 year olds.
Companies which have a strong CSR track record in this area are clearly not shouting loudly enough about what is on offer. It is true that what people say in a survey and what they do in real life is often very different. However, even bearing that in mind there is clearly an increasing interest in ethical products which ethical companies should make the most of.
Earlier this month saw the return of National Ethical Investment Week, which wants Christians of all denominations to think before they invest. This year, the Ecumenical Council for Corporate Responsibility (ECCR) produced a special 'Action Guide for Churches' to encourage Christians to 'apply their principles through their savings and investment decisions'. It is intriguing, but perhaps not surprising, that churches have an interest in CSR...
The UK Sustainable Investment and Finance Organisation (UKSIF), has highlighted that churches have a history of using their spending power for positive change. This has included targeting unfair labour practices, combating apartheid in South Africa and tackling arms trading.
As a corporate body, focused on CSR, UK Christians, of all shapes and sizes, have more power than they think. The latest figures available from the Church of England show that the church commissioners manage £4.4bn of assets. And that is only the corporate funds of one part of the Christian church. The combination of every denomination, and each churchgoer, focussing their funds on ethical investment would have a powerful impact on the market.
A survey, conducted by YouGov and released as part of National Ethical Investment Week this year, showed that there is a growing appetite for green and ethical options, especially among those aged 35 and over. More than half (54%) of all GB adults with investments want to make money but also to make a difference.
However, the financial services industry and even those companies with a track record in CSR seem to be missing a trick in marketing their green and ethical financial options. More than four in 10 (43%) of all GB adults remain unaware that they have green and ethical options on a wide range of financial products from cash ISAs and funds, to mortgages and pensions.
The survey, of 2,700 UK adults, showed that people aged 35 and over are more concerned about creating a sustainable future than younger adults, busting the myth that the younger generation tends to be more green and ethical.
When it comes to savings and investments, more than half (58%) of over 55s and (54%) of those aged 35-54 want to make money and a positive difference to the world with their investments, compared to one in three (33%) 18-24 year olds.
Companies which have a strong CSR track record in this area are clearly not shouting loudly enough about what is on offer. It is true that what people say in a survey and what they do in real life is often very different. However, even bearing that in mind there is clearly an increasing interest in ethical products which ethical companies should make the most of.
Educational: Developing Clean Fuels from Landfill Gas
This background article was penned by a representative of Waste Management, Inc. While surely it is a corporate promotion exercise, it is also good background information on the waste-to-energy industry.
Usually, a landfill signifies the end of the waste cycle. But for the waste industry, this is just the beginning. When waste decomposes in a landfill, it emits a mixture of gases, some of which can be processed to create liquefied natural gas. These resulting gases are increasingly being used instead of fossil fuels to power a variety of vehicles, such as heavy-duty truck fleets.
To close the loop on our own waste collection process, Waste Management has taken this cycle a step further. At the Altamont Landfill near Livermore, California, we’ve partnered with The Linde Group to convert the landfill gas (LFG) we collect into liquefied natural gas (LNG). In turn, this gas is used as fuel to power our collection vehicles; the plant can produce up to 13,000 gallons of LNG per day, enough fuel for 300 LNG powered collection trucks across 20 California communities. Read More at EarthandIndustry.com
Usually, a landfill signifies the end of the waste cycle. But for the waste industry, this is just the beginning. When waste decomposes in a landfill, it emits a mixture of gases, some of which can be processed to create liquefied natural gas. These resulting gases are increasingly being used instead of fossil fuels to power a variety of vehicles, such as heavy-duty truck fleets.
To close the loop on our own waste collection process, Waste Management has taken this cycle a step further. At the Altamont Landfill near Livermore, California, we’ve partnered with The Linde Group to convert the landfill gas (LFG) we collect into liquefied natural gas (LNG). In turn, this gas is used as fuel to power our collection vehicles; the plant can produce up to 13,000 gallons of LNG per day, enough fuel for 300 LNG powered collection trucks across 20 California communities. Read More at EarthandIndustry.com
Energy Giant Areva to Invest $3 Billion in India Solar Power
France-based energy company Areva (CEI.PA) is planning to invest $3 billion in India's rapidly growing solar power sector. The company plans to set up 1000 MW solar thermal power capacity in the next five to seven years.
Areva already has a presence in the biomass sector with 60 MW installed capacity and launched a joint venture with Astonfield to increase the capacity to 100 MW. Apart from renewables, the company is also expected to gain significant share in India's nuclear energy market through the Indo-French nuclear deal signed last year. Read More
Areva already has a presence in the biomass sector with 60 MW installed capacity and launched a joint venture with Astonfield to increase the capacity to 100 MW. Apart from renewables, the company is also expected to gain significant share in India's nuclear energy market through the Indo-French nuclear deal signed last year. Read More
Monday, November 29, 2010
S.C. Johnson Plans to Disclose All Product Ingredients
Family-owned S.C. Johnson is launching a multiplatform campaign that promises to disclose all ingredients in its cleaning products, "right down to the fragrances and dyes." The effort was to start with an ad during the CBS airing of the Thanksgiving parade, starring Chairman and CEO Herbert Fisk Johnson III, and will include "more digital engagement than we've typically done," Johnson said. "If we’re really going to make progress on the environment, we have to empower consumers to make more environmental choices"
Read more from NYTimes.com
Read more from NYTimes.com
Investors Say Weak U.S. Policies Causing Private Capital To Go Overseas; Strong Policies Needed to Close Widening Climate Investment Gap
BOSTON - The world's largest global investors have a powerful message for climate negotiators in Cancun and the new U.S. Congress: take action now in the fight against global warming or risk economic disruptions far more severe than the recent financial crisis.
Citing potential climate-related GDP losses of up to 20 percent by 2050 and the economic benefits of shifting to low-carbon and resource-efficient economies, investors released a major statement today calling for national and international policies that will spur private investment into low-carbon technologies.
The statement was signed by 259 investors from North America, Europe, Asia, Australia, Latin America and Africa with collective assets totaling more than $15 trillion—more than one-quarter of global capitalization. Signatories included Allianz, HSBC, APG and a dozen U.S. public pension funds and state treasurers. It is the largest-ever group of investors to call for government action on climate change. Read more.
Citing potential climate-related GDP losses of up to 20 percent by 2050 and the economic benefits of shifting to low-carbon and resource-efficient economies, investors released a major statement today calling for national and international policies that will spur private investment into low-carbon technologies.
The statement was signed by 259 investors from North America, Europe, Asia, Australia, Latin America and Africa with collective assets totaling more than $15 trillion—more than one-quarter of global capitalization. Signatories included Allianz, HSBC, APG and a dozen U.S. public pension funds and state treasurers. It is the largest-ever group of investors to call for government action on climate change. Read more.
Friday, November 19, 2010
CalPERS shifts $500m into internally-run environmental index strategy
CalPERS’s, the $220bn pension giant, has shifted $500mn to a new "inclusive" environmental portfolio strategy. Its previous policy, started in 2006, was to exclude big polluters via environmental screens. In contrast, companies included in the new portfolio will have to derive a material portion of their revenues from low-carbon energy production. George Diehr, chairman of CalPERS’ investment committee, said that research showed a positive inclusionary methodology for investing in listed companies was more successful than a negative exclusionary approach.
Through its Environmental Technology program, CalPERS has also to date invested $1.5bn in private equity clean-tech mandates. Read more about CalPERS' actions here.
Through its Environmental Technology program, CalPERS has also to date invested $1.5bn in private equity clean-tech mandates. Read more about CalPERS' actions here.
Monday, November 1, 2010
State Street Report on Sustainable Investing: The Best Firms Widened the Gap in the Financial Crisis
State Street Corporation (NYSE: STT), one of the world's leading providers of financial services to institutional investors, has released a new Vision Focus report on sustainable investing. Entitled “Sustainable Investing: Positioning for Long-Term Success,” the report leverages new research by State Street Global Advisors (SSgA), the investment management business of State Street, to examine the growing impact of environmental, social and governance (ESG) concerns on the investment decisions of institutional investors.
World population growth, climate change and a range of other catalysts are transforming sustainability into “a material issue for companies and investors alike,” the report states.
“With global business and investing moving toward a more sustainable model, institutional investors need to position themselves for a future that may look dramatically different from the past,” said Chris McKnett, vice president of ESG investing at SSgA. “By taking steps to align themselves with this trend now, institutional investors may be better positioned to achieve long-term goals.”
Once viewed as a marginal investing “fad,” ESG investing is gaining momentum as global macro-trends increasingly point to a “sustainability crisis” taking place around the world, the report states. “Many investors have called for more opportunities to incorporate ESG factors into their portfolios, prompting investment managers to enhance their product and service offerings.”
The report is a bridge to research findings outlined in a new SSgA study, scheduled to be released later this year. The 2010 study is an update to research conducted by SSgA in 2008. While the 2008 study suggested a growing importance for ESG-related investment considerations, the new study goes a step further by examining ESG in bear market periods, and found that, in general, high-scoring ESG companies suffered less during the 2008-2009 downturn.
In addition, the new research found that the magnitude of protection enjoyed by companies with strong ESG practices increased at the same time as the largest market declines occurred.
According to the Vision report, the global financial crisis contributed to greater awareness of ESG issues by spotlighting the need for “more stringent corporate governance and disclosure requirements to help protect the interests of investors.”
“The new emphasis on sustainability is changing the rules of the institutional investment world,” continued McKnett. “As ESG factors are increasingly mandated by investors, those companies with favorable ESG ratings are likely to become the preferred holdings.”
The Vision report reviews the development of ESG investing from the early focus on exclusionary screening of companies whose products or services were deemed inconsistent with an investor’s values, to today’s more proactive approach of incorporating ESG factors into the investment decision-making process. With more in-depth analysis of ESG data and ratings, the report states, “Today’s sustainable investor is intent on identifying companies expected to outperform over the long term based on their practices of embracing the concept of sustainability in the operation and management of their enterprises.”
State Street’s Vision Series addresses key trends and developments impacting the financial services industry. Previous reports have focused on pensions, exchange traded funds, asset allocation and sovereign wealth funds. To download a copy of this Vision Focus report or others in State Street’s Vision series of in-depth reports, please visit www.statestreet.com/vision.
World population growth, climate change and a range of other catalysts are transforming sustainability into “a material issue for companies and investors alike,” the report states.
“With global business and investing moving toward a more sustainable model, institutional investors need to position themselves for a future that may look dramatically different from the past,” said Chris McKnett, vice president of ESG investing at SSgA. “By taking steps to align themselves with this trend now, institutional investors may be better positioned to achieve long-term goals.”
Once viewed as a marginal investing “fad,” ESG investing is gaining momentum as global macro-trends increasingly point to a “sustainability crisis” taking place around the world, the report states. “Many investors have called for more opportunities to incorporate ESG factors into their portfolios, prompting investment managers to enhance their product and service offerings.”
The report is a bridge to research findings outlined in a new SSgA study, scheduled to be released later this year. The 2010 study is an update to research conducted by SSgA in 2008. While the 2008 study suggested a growing importance for ESG-related investment considerations, the new study goes a step further by examining ESG in bear market periods, and found that, in general, high-scoring ESG companies suffered less during the 2008-2009 downturn.
In addition, the new research found that the magnitude of protection enjoyed by companies with strong ESG practices increased at the same time as the largest market declines occurred.
According to the Vision report, the global financial crisis contributed to greater awareness of ESG issues by spotlighting the need for “more stringent corporate governance and disclosure requirements to help protect the interests of investors.”
“The new emphasis on sustainability is changing the rules of the institutional investment world,” continued McKnett. “As ESG factors are increasingly mandated by investors, those companies with favorable ESG ratings are likely to become the preferred holdings.”
The Vision report reviews the development of ESG investing from the early focus on exclusionary screening of companies whose products or services were deemed inconsistent with an investor’s values, to today’s more proactive approach of incorporating ESG factors into the investment decision-making process. With more in-depth analysis of ESG data and ratings, the report states, “Today’s sustainable investor is intent on identifying companies expected to outperform over the long term based on their practices of embracing the concept of sustainability in the operation and management of their enterprises.”
State Street’s Vision Series addresses key trends and developments impacting the financial services industry. Previous reports have focused on pensions, exchange traded funds, asset allocation and sovereign wealth funds. To download a copy of this Vision Focus report or others in State Street’s Vision series of in-depth reports, please visit www.statestreet.com/vision.
SRI Fund Manager Interview: Gabelli SRI Green Fund
Last week, during the Green Business Works Expo in Atlanta, we were able to sit down with John M. Segrich, co-manager of the Gabelli SRI Green Fund to discuss his investment thoughts. This unique equity mutual fund is focused on (to quote the fund's fact sheet) "sustainability issues it believes materially impact the world we live in through a series of economic, social, and political changes, including, but not limited to: climate change, energy security and independence, natural resource shortages, organic living, and urbanization." It's quite a mouthful, but in practice it makes sense.
Gabelli is a research-driven firm whose investment philosophy is to "identify companies that are selling at substantial discounts to their intrinsic value" (i.e., the value that an informed buyer would pay for the entire firm.) This research-driven approach lends itself well to assessing both the valuation and the sustainability issues inherent in each potential investment.
The firm's approach appears to be working. Mutual fund rating service Morningstar recently awarded its highest rating (5-Stars) to the three year old fund. Classified as a Mid Cap Growth fund, Gabelli SRI Green holds more than half of its investments outside the US. As such, its largest holdings are hardly household names -- and they tend to change frequently. (The fund's portfolio "turnover" was in excess of 190 percent last year.) Its largest holding is ReneSola Ltd., a China-based manufacturer of silicon solar wafers (the raw materials for photovoltaic solar panels), which comprised some 7% of the portfolio at the end of the third quarter. In the prior quarter, the largest spot was occupied by Rubicon Technologies, an Illinois-based maker of sapphire crystal products for LED and other optics applications. Most of the fund's 60-odd holdings are equally obscure names that few investors would recognize.
Whether purposefully or not, the fund balances the risk of volatile mid-cap tech firms with at least a few larger, more established companies. Pharmaceutical firm Novo Nordisk fits the firm's "change" criteria with its focus on medications to combat diabetes, a disease that the managers expect to become more prevalent as emerging nations become wealthier and more sedentary. Johnson Controls is another large firm ($20+ billion market cap) whose building efficiency and power solutions groups are clear fits with any clean tech theme. As we said, these large cap firms are the exceptions in a portfolio dominated by smaller niche companies.
We have spent the bulk of this report describing the fund's focus on interesting, world-changing companies. Another aspect of its management is the disipline around where it will NOT invest. The fund's "social" criteria excludes many controversial industries such as tobacco, alcohol, and gambling while also avoiding the top 50 defense contractors. Environmental factors are addressed through the active investment criteria that specifically target these industries. This is evident even in the manner in which the fund describes its top industry sectors. Rather than use broad terms such as "Technology" or "Energy", the managers identify very specific industries, such as: "Light Emitting Diodes", "Solar" or "Energy Efficiency" as having large allocations within the fund.
With its short track record (just three years), high turnover, concentrated investment style and focus on small, volatile companies, the Gabelli SRI Green Fund can hardly be considered appropriate as a core holding in any investment plan. However, in a supporting role, Gabelli Green could be a very interesting, and potentially exciting, alternative for sustainably-minded investors.
Gabelli is a research-driven firm whose investment philosophy is to "identify companies that are selling at substantial discounts to their intrinsic value" (i.e., the value that an informed buyer would pay for the entire firm.) This research-driven approach lends itself well to assessing both the valuation and the sustainability issues inherent in each potential investment.
The firm's approach appears to be working. Mutual fund rating service Morningstar recently awarded its highest rating (5-Stars) to the three year old fund. Classified as a Mid Cap Growth fund, Gabelli SRI Green holds more than half of its investments outside the US. As such, its largest holdings are hardly household names -- and they tend to change frequently. (The fund's portfolio "turnover" was in excess of 190 percent last year.) Its largest holding is ReneSola Ltd., a China-based manufacturer of silicon solar wafers (the raw materials for photovoltaic solar panels), which comprised some 7% of the portfolio at the end of the third quarter. In the prior quarter, the largest spot was occupied by Rubicon Technologies, an Illinois-based maker of sapphire crystal products for LED and other optics applications. Most of the fund's 60-odd holdings are equally obscure names that few investors would recognize.
Whether purposefully or not, the fund balances the risk of volatile mid-cap tech firms with at least a few larger, more established companies. Pharmaceutical firm Novo Nordisk fits the firm's "change" criteria with its focus on medications to combat diabetes, a disease that the managers expect to become more prevalent as emerging nations become wealthier and more sedentary. Johnson Controls is another large firm ($20+ billion market cap) whose building efficiency and power solutions groups are clear fits with any clean tech theme. As we said, these large cap firms are the exceptions in a portfolio dominated by smaller niche companies.
We have spent the bulk of this report describing the fund's focus on interesting, world-changing companies. Another aspect of its management is the disipline around where it will NOT invest. The fund's "social" criteria excludes many controversial industries such as tobacco, alcohol, and gambling while also avoiding the top 50 defense contractors. Environmental factors are addressed through the active investment criteria that specifically target these industries. This is evident even in the manner in which the fund describes its top industry sectors. Rather than use broad terms such as "Technology" or "Energy", the managers identify very specific industries, such as: "Light Emitting Diodes", "Solar" or "Energy Efficiency" as having large allocations within the fund.
With its short track record (just three years), high turnover, concentrated investment style and focus on small, volatile companies, the Gabelli SRI Green Fund can hardly be considered appropriate as a core holding in any investment plan. However, in a supporting role, Gabelli Green could be a very interesting, and potentially exciting, alternative for sustainably-minded investors.
World Trade Center to be powered by natural-gas fuel cell array
The new World Trade Center in New York City is to get much of its energy from an array of natural gas-powered fuel cells. This will help to reduce the site's environmental footprint and curb the amount of river water needed for cooling purposes. Developers hope the high-profile installation will encourage other building managers to embrace the technology. "If we can demonstrate that fuel cells work, that they can be highly effective, that they can achieve energy-saving goals, we hope that other owners of buildings and office buildings will choose to adopt them in the future," says Janno Lieber, the project chief.
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