Month: August 2023

Do you feel a bit lost when people refer to certain environmental sustainability topics and aren’t sure where to start when it comes to learning more? Sustainability 101 is a blog series that you can turn to for information about different environmental terms that may come up at work, during discussions with friends, and even at your annual holiday gathering.

This blog was written by Nicole Kenney, Program Manager, Sustainable Packaging, and Drew Phan, Packaging Engineer.

As part of modern life, most of the products we buy come in plastic packaging. When you buy something with plastic packaging, you’re probably not aware of what type of plastic it is. There is recycled plastic, which is when recycled bits of plastic are reprocessed into plastic products. And there is also virgin plastic, also known as virgin plastic polymers, which according to a 2022 report, means “newly manufactured resin produced from petrochemical or biomass feedstock used as the raw material for the manufacture of plastic products and which has never been used or processed before.”

Essentially, virgin plastics are manufactured from previously unused materials, which means they can take a bigger toll on the environment.

Since the 1950s, plastic has overrun the packaging industry by providing inexpensive and light-weight protection for products. Plastic packaging is widely available in the form of conventional foams, bags, and clamshell trays. Over the decades, this has led to a global build up of plastic pollution, since these materials are not always managed correctly at end of use. Although plastics are found in all major municipal solid waste categories, in the United States the containers and packaging category had the most plastic tonnage at over 14.5 million tons in 2018 alone (EPA Source #1). That is equivalent to the weight of over 300,000 gray whales. The sheer volume of waste has led to growing awareness around the impact of packaging and increased customer demand for sustainable alternatives.

At the same time, a product has little to no value if it arrives damaged. Cisco’s Packaging Engineering division thinks holistically when it comes to designing Cisco’s packaging with sustainability in mind. We are rethinking product packaging and are sourcing alternative materials to plastic. Our strategy includes eliminating plastic bags in our packaging wherever possible. As an example, we have removed plastic packaging from our power cords, resulting in a reduction of over 10 million bags annually. Work is underway to apply the same efforts across additional component categories.

Design for Recyclability

Where we cannot completely remove plastic packaging, we must choose alternatives with a smaller environmental footprint. This means opting for recyclable materials that are easily separated and widely accepted in curbside recycling streams. Once these materials are recovered, they can be broken down and re-processed into the feedstock for the next round of packaging.

As an example, our plastic thermoform cushions are made of the same high-density polyethylene material as milk jugs and can be accepted in the same plastic curbside recycling stream.* According to the U.S. Environmental Protection Agency (EPA), HDPE (High Density Polyethylene) is one of the most frequently recycled plastics in the United States (EPA source #1).

In the case of plastic bags in our accessory kits, efforts are underway to utilize fiber-based paper envelopes and corrugated sleeves that are recyclable. Paper is currently the best alternative because it is the most recycled material in the United States (EPA source #2).

Choose Recycled Materials

Recycled materials are different from recyclable materials in that recycled packaging has a percentage of material inputs that have already been broken down and reprocessed after use. By incorporating more recycled content into our packaging, we conserve valuable resources and reduce greenhouse gas emissions compared to manufacturing virgin materials. Choosing recycled materials also promotes recycling by increasing the demand for recycled materials.

We are focusing our energy on recyclable and recycled plastics because, unfortunately, biodegradable and compostable plastics aren’t well suited for use in the electronics industry.

Biodegradable and bio-based are terms used loosely to describe plastics made from plant sources. The biggest concern for these materials is that it is not always clear how long it will take for these plastics to break down. Since they are often not certified compostable, they can potentially leech toxins into the soil. (SPC source #3)

When it comes to compostable packaging, the U.S. Federal Trade Commission (FTC) Green Guides explain that this packaging must be certified with “competent and reliable scientific evidence that all materials in the product or package will break down into — or become part of — usable compost safely and in about the same time as the materials with which it is composted” (FTC source #4). This is good for organic waste like food scraps, grass clippings and yard waste. But currently, the shorter shelf life of compostable packaging makes it better suited for food packaging than the electronics industry.

A circular strategy

We are evolving to a more circular model in which we reduce the resources we consume and the waste we generate. With this approach, we try to prioritize materials with recycled content; design products for resource efficiency; and facilitate repair, remanufacturing, and recycling to extend product life. That’s why we have a goal for 100% of new Cisco products and packaging to incorporate Circular Design Principles by fiscal year 2025.** Using recycled materials is an example of one of our principles.

By pursuing our goal to incorporate Circular Design Principles, we can use less virgin material, and consume less material overall. Reducing our packaging carbon footprint will drive progress towards Cisco’s packaging goals (Source #5).

As we take the necessary steps to embed Circular Design Principles into our packaging portfolio, it is important to remember that every choice has tradeoffs — there is no one-size fits all solution. Achieving circularity is an iterative process — what is best for today may not be what’s best for tomorrow. But if we remain agile and strive for success, we can continue to move in a positive direction towards a circular economy.

Follow our Packaging Engineering team’s journey as we continue to evolve our circular packaging portfolio (Source #6).

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* Check your local municipality for more info.

** In fiscal year 2022, we had conducted a soft launch of a new scoring tool that evaluates circularity in products and packaging. We used the soft launch to evaluate 13% of new products and packaging, and found that 33% of them successfully met our circular design criteria. This is equivalent to 4% of total new products and packaging released in fiscal year 2022 meeting circular design criteria. In early fiscal 2023, the scoring tool was formally launched across all business units, and we expect the universe of new products and packaging evaluated to increase in fiscal 2023.

SOURCES:

Plastics: Material-Specific Data | US EPAPaper and Paperboard: Material-Specific Data | US EPAPublic_SPC-Position-Statement_Biodegradable-Packaging.pdf (sustainablepackaging.org)Environmental Claims: Summary of the Green Guides | Federal Trade Commission (ftc.gov)Environmental Goals – Cisco ESG HubCisco Sustainable Packaging – Cisco

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BILL NYE, BRIDGET MOYNAHAN, BUSY PHILIPPS, CARMELO ANTHONY, COMMON, CONNIE BRITTON, DANAI GURIRA, GAYLE KING, JORDAN FISHER, LEWIS PUGH, PADMA LAKSHMI, PHOEBE GATES, RACHEL BROSNAHAN, SOPHIA BUSH, SOPHIA KIANNI AND XIYE BASTIDA SET TO ADDRESS GLOBAL CITIZENS IN CENTRAL PARK ON SEPTEMBER 23 

2023 GLOBAL CITIZEN FESTIVAL FOCUSES ON SYSTEMIC REFORMS FOR EQUITY, FOR THE PLANET, FOR FOOD AND FOR JOBS 

Global Citizen Festival to Broadcast and Stream on ABC, ABC News Live, Apple Music and the Apple TV app, Prime Video and the Amazon Music Channel on Twitch, Hulu, iHeartRadio, Mediacorp, SABC, TimesLIVE, Veeps, YouTube and more

Proudly Presented by Citi and Cisco, and Supported by Global Partners Accenture, Delta Air Lines, P&G, TimesLIVE, and Verizon; Campaign Partners Bridgewater Associates and World Wide Technology; with Live Nation and iHeartMedia

Join the Global Movement Ending Extreme Poverty: Earn tickets to Global Citizen Festival by taking action on the Global Citizen app and at www.globalcitizen.org 

NEW YORK, August 22, 2023 /3BL/ – Anitta, D-Nice and Sofia Carson have been added to the lineup for this year’s Global Citizen Festival, set to take place on the Great Lawn of Central Park in New York City on Saturday, September 23. José Ramos-Horta, President of Timor-Leste, Governor Helder Barbalho and State Secretary for Indigenous People Puyr Tembé from the Brazilian State of Pará will also address the event, which is hosted by international advocacy organization Global Citizen. Bill Nye, Bridget Moynahan, Busy Philipps, Carmelo Anthony, Common, Connie Britton, Danai Gurira, Gayle King, Jordan Fisher, Lewis Pugh, Padma Lakshmi, Phoebe Gates, Rachel Brosnahan, Sophia Bush, and renowned advocates Barbie Izquierdo, Deja Foxx, Ineza Umuhoza Grace, Jerome Foster II, Nkosana Butholenkosi Masuku, Sophia Kianni, Pashtana Durrani, and Wangari Kuria are also set to participate at the event, which will be broadcast live around the world. Previously announced festival headliners include Red Hot Chili Peppers and Ms. Lauryn Hill. Megan Thee Stallion, Conan Gray and Stray Kids are also set to perform.

In 1990, according to the World Bank, 2 billion people were living in extreme poverty. Years of unified action on a global scale saw that number reduced to less than 650 million by 2019, prior to the Covid-19 pandemic. Now, for the first time in a generation, extreme poverty is on the rise, threatening to undermine decades of progress.

This year’s Global Citizen Festival campaign is laser-focused on urging governments to take action and address the systemic issues perpetuating extreme poverty. Specifically, global citizens everywhere are applying pressure on:

The UK Government and Labour Opposition to release a time-bound plan for delivering on the £11.6 billion in climate financing pledged at COP26 in Glasgow;The Government of Canada to continue championing women and girls by pledging to fund vital health services through UNFPA;The Government of Australia to rejoin the International Fund for Agricultural Development (IFAD) and equip smallholder farmers across the Pacific and the world to combat the global food crisis; andGovernments everywhere to stop repression of advocates, and take necessary steps to promote freedom of speech and protect them.

Without intervention on these issues, the negative trajectory of the last three years will continue for the world’s most marginalized populations.

Tickets to the 2023 Global Citizen Festival are free and can be earned by joining the movement and taking action on the Global Citizen app or at www.globalcitizen.org.

“We’re thrilled to join forces with these passionate artists and advocates to call for urgent action to address the climate crisis, demand equity for women and girls and disrupt the cycles holding people in extreme poverty,” said Katie Hill, SVP, Head of Music, Entertainment and Artist Relations, Global Citizen. “This year’s campaign is driving a record number of actions from global citizens around the world, and we’re grateful to this year’s performers and presenters for leveraging their voices and joining us on the Great Lawn on September 23.”

“Extreme poverty, hunger and food insecurity threaten lives and health. The call for action is crystal clear: We need to increase investments in climate-robust, small-scale food production. Growth in agriculture is the most efficient way to create jobs, fight poverty and combat hunger. The Global Citizen Festival is important to mobilise more people and more investments in reaching the world’s Common Goals – our Sustainable Development Goals,” said Ms Anne Beathe Tvinnereim, Norwegian Minister of International Development.

“As part of its mandate, Afreximbank is proud to support Global Citizen in its efforts to address the issue of extreme poverty by advocating for a more just and equitable global financing system that would pave the way for increased collaboration between the Bank and African Diaspora communities,” said Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. “Providing our Member States with the financial support they need to address and overcome economic challenges, including climate change, food crises, and gender inequity, is imperative in the context of ongoing global economic challenges.”

Global Citizen Festival is presented by Citi and Cisco. Global Partners are Accenture, Delta Air Lines, P&G, TimesLIVE and Verizon; Campaign Partners Bridgewater Associates and World Wide Technology; with Live Nation, iHeartMedia, and Location Partner New York City Department of Parks and Recreation. The Global Citizen Festival broadcast is produced by Done and Dusted. The 2023 Global Citizen Festival will be broadcast and streamed to the world on ABC, ABC News Live, Apple Music and the Apple TV app, Prime Video and the Amazon Music channel on Twitch, Facebook, Hulu, iHeartRadio, Instagram, Mediacorp, SABC, TikTok, TimesLIVE, Veeps, X, YouTube, the Global Citizen app and globalcitizen.org.

Global Citizen is grateful for the support of leading media companies across the world including: AIM Group, Arena Holdings, Atmosphere TV, Bandsintown, Bella Naija, Billboard, Branded Cities, Captivate, Digital Mobile Media, EIB Network, Grocery TV, GSTV, Interstate Outdoor, MX Location, New Tradition, Orange Barrel Media, OUTFRONT Media, Penske Media, Rolling Stone, Seen Media, Six Flags Theme Parks, Spotify, Trooh Media, Vanguard Media, Variety, VIBE, Vox Media, The Wall Street Journal and Zikoko.

The 2023 Global Citizen Festival campaign and its policy goals are supported by: Afreximbank, African Climate Reality Project; Aspire Artemis Foundation Inc.; Ban Ki-moon Centre for Global Citizens; BASICS International; Bays Planet Foundation; Beyond Bretton Woods; Blended Finance Taskforce; Brave Foundation; Center for Environmental Peacebuilding; Chanja Datti; Climate Finance Group for Latin America and the Caribbean; Common Good Marketplace; Connected Development; Don’t Gas Africa; E3G; Earth For All; ECB Sustainable Youth Foundation; Education Cannot Wait: The UN Global Fund for Education in Emergencies; Equitable Earth; Extinction Rebellion (XR) Nelson Mandela Bay (NMB); Focus 2030; Fossil Fuel Non-Proliferation Treaty Innitiative; Friends of the Global Fund Europe; GAIN; Gender and Economic Research Center; Germanwatch; Glasgow Actions Team; Global Alliance for a Green New Deal; Global Education and Leadership Foundation (Values 20 India); The Global Fund; Global Health Advocates; the Global Kid; Global Nation; Green Republic Farms; Hungry for Action; IEC Global Impact Fund; International Climate Change Development Initiative; International Climate Financing WG; International Fund for Agricultural Development; JA Africa; Jane Goodall Institute France; Jara; Lagos Food Bank; LEAP Africa; Loss and Damage Youth Coalition; Malala Fund; Marafiki United Green Youths Initiative; Millennials Movement; Moody’s; The ONE Campaign; ONG Jeunes Volontaires pour l’Environnement (JVE); Only One; OurCause; Outright International; OWIT Brussels – Organization of Women in Trade; Plastic Punch; Power to Girls Foundation; Primavera Zur; Project Everyone; Recycling Scheme for Women and Youth Empowerment (RESWAYE); Re:Wild; Save the Children; SDG2 Advocacy Hub; Shamba Centre for Food and Climate; Sharing Strategies; She Leads Climate Action; Stage For Change; Strategic Youth Network for Development; Sungulo Comm NPC; Support Humanity Cameroon (SUHUCAM); Sustainable Development Solutions Network; Sustainability and Climate Podcast; UN Joint SDG Fund; United Nations Foundation; UNFPA; Uniting To Combat NTDs; Whitaker Peace & Development Initiative (WPDI); and Women At Risk International Foundation.

For more information visit globalcitizenfestival.com, download the Global Citizen app, and follow Global Citizen on TikTok, Instagram, YouTube, Facebook, X and LinkedIn.

– Ends –

About Global Citizen 
Global Citizen is the world’s leading international advocacy organization on a mission to end extreme poverty NOW. Powered by a worldwide community of everyday activists raising their voices and taking action, the movement is amplified by campaigns and events that convene leaders in music, entertainment, public policy, media, philanthropy and the corporate sector. Over the past 10 years, $43.6 billion in commitments announced on Global Citizen platforms has been deployed, impacting nearly 1.3 billion lives. Established in Australia in 2008, Global Citizen’s team operates from New York, Los Angeles, London, Paris, Berlin, Melbourne, Toronto, Johannesburg, Lagos and beyond. Join the movement at globalcitizen.org, download the Global Citizen app, and follow Global Citizen on TikTok, Instagram, YouTube, Facebook, X and LinkedIn.

Press Kit 
Click here for artwork

Media Credentials 
Applications are now open for media credentials to attend and cover the 2023 Global Citizen Festival. Please complete the application form here

Contact 
Global Citizen media inquiries: media@globalcitizen.org

Exclusive group promotes supplier diversity excellence and best practices

CHARLOTTE, N.C. August 22, 2023 /3BL/ – The Billion Dollar Roundtable Inc. (BDR), a non-profit organization that promotes supplier diversity excellence and best practices, today inducted Duke Energy into the exclusive organization.

The BDR consists of U.S.-based corporations that reach $1 billion or more annually in Tier 1 supply chain diversity spend. Duke Energy spent over $1.8 billion with diverse suppliers in 2022 and works to ensure a diverse pipeline of skilled suppliers capable of providing commodities and services at competitive prices.

“Supplier diversity at Duke Energy is more than a program – it’s a pillar of our strategy to help meet the ever-changing needs of our customers and communities,” said Dwight Jacobs, senior vice president and Chief Procurement Officer. “Our procurement practices help create jobs and provide a positive local economic impact in our communities while providing us access to quality products and services at competitive prices to deliver reliable, affordable, and increasingly clean energy for our customers.”

For nearly 40 years, the company has intentionally sought and done business with veteran, disability and other diverse-owned companies, creating a supply chain ecosystem that is resilient, innovative, and intwined in the communities it serves. The company’s Supplier Diversity program is designed to develop and grow relationships with these businesses and provide opportunities for them through Duke Energy’s supply chain and those of its suppliers.

The Billion Dollar Roundtable will honor Duke Energy at a formal induction ceremony today during its annual best practices summit in Chicago.

“The Billion Dollar Roundtable looks forward to working with Duke Energy on supplier diversity initiatives and leadership in the utilities/energy sector. The supplier diversity spend of utility companies translates directly to economic impact in local communities in their customer coverage areas, and Duke Energy’s broad footprint in the Southeast and Midwest creates countless opportunities to engage diverse suppliers,” said BDR Chairman Shelley Stewart Jr.

BDR member companies

Duke Energy joins these major U.S.-based corporations as member companies of the BDR: Abbott Laboratories, Adient, Amazon, Apple, AT&T, Avis Budget Group, Bank of America, Boeing, Bristol Myers Squibb, Caterpillar, CDW, Citi, Comcast NBCUniversal, Cummins, CVS Health, Dell, Entergy, Exelon, Exxon Mobil, Ford , General Motors, Google, Honda North America, IBM, Johnson & Johnson, JPMorgan Chase, Kaiser-Permanente, Kroger, Merck, Meta Platforms, Microsoft, Pacific Gas and Electric, Procter & Gamble, Stellantis, The Home Depot, Toyota Motor North America, Verizon and Walmart.

“Duke Energy’s induction comes at an important time in the history of the BDR, as corporations are fully understanding the value of diverse supply chains to the success of their companies. Diverse suppliers are eager, nimble and innovative, and we welcome the contributions Duke Energy will make to the BDR in helping to develop and grow new generations of suppliers,” said BDR CEO, President and Co-Founder Sharon Patterson.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America’s largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 27,600 people.

Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.

Duke Energy was named to Fortune’s 2023 “World’s Most Admired Companies” list and Forbes’ “World’s Best Employers” list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

The Billion Dollar Roundtable 

The Billion Dollar Roundtable, created in 2001, is a non-profit organization that comprises corporations that each spend $1 billion or more annually on a Tier 1 basis with diverse suppliers. The BDR recognizes and celebrates corporations that achieve this status and promotes and shares best practices in supply-chain diversity excellence. BDR member companies review and discuss issues, challenges and strategies related to supplier diversity as a means to advance supply chain opportunities for both corporations and diverse suppliers. The BDR is publisher of the title “Supplier Diversity Best Practices: Building Excellence to Improve the Supply Chain Matrix.” For more information about the BDR, visit www.billiondollarroundtable.org/.

Contact: Madison McDonald 
24-Hour: 800.559.3853

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Originally published by GoodGoodGood

BY KAMRIN BAKER

Most dogs love a car ride: windows down, ears flapping in the wind, their wet noses capturing the scents of the world as it races by.

But sometimes the destination is even more rewarding.

Subaru’s Las Vegas retailer — which was recently recognized company-wide for its dedication to giving back — has added a car-ride-loving component to its showroom: a pack of therapy dogs.

It all started when Subaru of Las Vegas partnered with local charity Michael’s Angel Paws, a Nevada-based organization that trains service and therapy support dogs for community members facing physical or emotional challenges. 

This began as a standard corporate charity relationship. After all, Subaru is known for its give-back initiatives under the Subaru Love Promise umbrella. 

One of the pillars of this campaign is “Subaru Loves Pets,” which prompts retailers across the country to connect with animal adoption and rescue groups to increase adoptions and raise funds for animals in need.

Jennifer Vitale, the assistant general manager at Subaru of Las Vegas told Good Good Good that these partnerships are about creating lasting relationships with communities and customers — which means making the showroom dog-friendly, too.

“We welcome all animals into our showroom; we even have a dog park for our four-legged friends, pet beds for them to relax and enjoy, a pet sink, and treats for pets of all sizes,” Vitale told Good Good Good in an email. 

“Watching the interactions in our showroom between dogs, customers, and employees made me realize that dogs provide more than companionship; they show us what real love is and bring indescribable joy to those around them.”

Through Subaru’s philanthropic work, the Las Vegas location has raised over $64,000 for Michael’s Angel Paws, but Vitale said the employees — a team of dog lovers themselves — didn’t want to stop there.

Continue reading here

New public policies reflect growing urgency to address climate risk, which equity investors should emphasize, too. 

Rising global temperatures, record heatwaves and costly wildfires seen in recent months are events scientists have longed warned about. Still, most investors rank inflation, rising rates, geopolitical tensions and finding new economic drivers—not climate change—as top risks.  

We believe that all those risks are important. But with global temperatures at life-altering highs, climate change needs to be incorporated into investment decisions right alongside them. 

Climate change is measured by more than degrees. Its long-term economic impact is severe, with an energy crisis currently at its epicenter. For instance, gas and oil shortages from the Russia-Ukraine war led to soaring costs, threatening business continuity worldwide in the absence of alternative energy sources. 

Climate risk challenges span all industries, leaving businesses striving to find effective solutions. However, through best practices, technology, proper funding and effective public policy, companies and countries alike can lower or prevent carbon-intensive consumption. In short, opportunities lie in fighting back. Government policymakers agree, especially in Europe and the US, where a wave of historic public programs and funding is unfolding (Display). 

In addition to addressing climate change, these measures are clearing barriers and incentivizing more industries to reduce greenhouse gas (GHG) emissions. As companies of all stripes chart a greener course, we believe active low-carbon equity investors are well positioned to discern those most likely to succeed and prosper.  

Governments Step Up as Low-Carbon Companies Step In

We believe intense government involvement is the year’s most important development in the prolonged global war on climate change, with lasting implications. It also ties to the first of three tenets supporting investing in low-carbon equities: aligning with governments in their pursuit of zero-emissions targets (Display).  

The US Inflation Reduction Act includes a record $369 billion to lower carbon emissions by 40% over the next decade. Among its business incentives are generous tax credits for adopting wind and solar renewable energy into operations, so the math now makes solar more economical than traditional power sources. 

A potential European Green Deal could include €375 billion to support the region’s own inflation reduction act. Among its goals: make Europe the first climate-neutral continent before midcentury and cut GHG output by 50%, while planting 3 billion new trees by 2030. A clean-energy component should boost wind and solar generation, which already has overtaken gas and coal across Europe, with solar production doubling in 2022 alone. 

All 27 European Union (EU) member states are on board, but not all have committed to full funding. Still, companies are finding their own paths among the Green Deal’s many incentive road maps. For instance, the EU wants to cut permit-approval times for renewables projects in priority areas to 12 months (down from a range of three to 10 years), and to 24 months elsewhere. This alone should speed up projects for firms ready to start, eliminating costly delays. 

We think both policy measures should steadily widen the low-carbon investment opportunity set. Encouraging greater use of clean fuels and energy storage, for example, is likely to be a game changer for companies for which it’s their lifeblood, such as California’s Enphase Energy and Israel-based SolarEdge Technologies.  

Finding Industries at the Heart of the Low-Carbon Transition 

Active stock selection is key when identifying companies that are best positioned to navigate the ongoing climate crisis without sacrificing returns. It takes commitment and hard work to get decarbonization right, and not all companies are up to the task.

Within European industrials, for example, clear decarbonization leaders have emerged in key categories at the intersection of climate change and equity selection: 

Smart Grid Technology. Firms in this space help other companies build and manage energy-efficient facilities and resources that lower third-party GHGs, known as Scope 4 emissions. Schneider Electric is a good example, with a commitment of nearly 800 million tons of avoided or saved CO2production for its clients by 2025, according to company reports. 

Cable Solutions. Our research suggests exponential growth in demand for medium- and high-voltage cable, as strong renewable-installation demand combines with overdue upgrades to create a favorable pricing environment. Cable manufacturer Prysmian Group increased its waste recycling to 71% and recently signed on to connect submarine lines to new windfarms worldwide, among other milestones.

Design Engineering. These firms consult on ESG-friendly infrastructure, logistics and construction for transportation, facilities and water treatment plants. We believe AECOM Technology is one of the top competitors in the $80 billion market, which is expected to grow by double digits annually for decades. Its ESG action plan includes reducing carbon by at least 50% on major projects, or about 84 million tonnes of avoided CO2.

Climate-Resilient, but How Good and at What Cost? 

We believe assessing climate resilience helps to identify companies likely to generate higher long-term return potential. But it shouldn’t be the sole consideration, even in a low-carbon equity strategy. Quality and price matter, too.

Quality companies, in our view, are durable businesses with well-defended competitive advantages and sustainable cash flows. They also tend to have an edge when inflation is high or rising, thanks to pricing power, industry leadership or both. Moreover, quality business models are well poised to tap the future drivers of economic growth, which increasingly include decarbonization. 

Beyond focusing on high quality and climate resilience, vigilance on price is important too. It’s tempting to follow the herd, but even the strongest low-carbon companies can be overvalued when markets get hot, especially if they’re tied to the technology sector. Staying alert to valuations helps improve return potential and avoid expensive or vulnerable pockets of the market. 

Unrelenting floods, wildfires, drought and heat have already made 2023 a record year on many levels. Global leaders are still waking up to the possibility of a bleak future without strong climate action. But we laud new comprehensive decarbonization policies from the US and Europe, while China, the world’s largest GHG producer, is also taking positive steps.  

The climate war is far from over. But the front lines are constantly being fortified with innovative, high-quality companies destined to break through and win some battles. Over time, we believe they’ll add up to a greater good. That’s why we think climate change must be incorporated into active investment decisions, not just as a niche risk, but as a key contributor to long-term equity performance. 

The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams. Views are subject to revision over time.

About the Authors

Kent Hargis, PhD

Kent Hargis is Co-Chief Investment Officer of Strategic Core Equities. He has been managing the Global, International and US portfolios since their inception in September 2011, and the Emerging Markets Strategic Core Portfolio since January 2015. Hargis was named head of Quantitative Research for Equities in 2009, with responsibility for overseeing the research and application of risk and return models across the firm’s equity portfolios. He joined the firm in October 2003 as a senior quantitative strategist. Prior to that, Hargis was chief portfolio strategist for global emerging markets at Goldman Sachs. From 1995 through 1998, he was assistant professor of international finance in the graduate program at the University of South Carolina, where he published extensively on various international investment topics. Hargis holds a PhD in economics from the University of Illinois, where his research focused on international finance, econometrics and emerging financial markets. Location: New York

Ian McNaugher, CFA

Ian McNaugher is a Research Coordinator (US) and Senior Research Analyst on the Strategic Core Equities investment team, covering multiple industries, including US utilities and aerospace & defense. Previously, he served as a research analyst on the Value Equities team, and before that served as a generalist and portfolio analyst for the Strategic Core portfolios, dating back to the inception of the platform in 2011. McNaugher joined AB in 2006, originally working in portfolio management and operations. He holds a BA in economics and English from Bucknell University and an MBA in finance from the Leonard N. Stern School of Business at New York University. McNaugher is a CFA charterholder. Location: New York

Jayme Lisiewski

Jayme Lisiewski is a Senior Research Analyst on the Strategic Core team, where he covers industrials and other high-quality businesses as a generalist. Lisiewski joined AB in 2022. He has worked in the investment industry since 1999 at firms including Voya Investment Management, SunAmerica Asset Management and Fred Alger Management. Lisiewski holds a BS and an MBA in finance from Fairleigh Dickinson University. Location: New York

Learn more about AB’s approach to responsibility here.

SWORDS, Ireland, August 22, 2023 /3BL/ – Trane Technologies (NYSE: TT), a global climate innovator,is proud to announce its Technician Apprenticeship Program (TAP) has received national registration from the U.S. Department of Labor, accrediting the program as a pathway for robust on-the-job training and quality, high-paying careers as Trane® Commercial HVAC service technicians. Requiring no prior experience or training and designed for scale, the four-year, paid instruction program will attract and develop early talent to this growing, in-demand field.

“Technicians are core to our organization and are critical to our customers. Their expertise and customer knowledge have a direct impact on the industry-leading performance of our energy-efficient, cutting-edge solutions,” said Dave Regnery, chair and CEO, Trane Technologies. “We have long been a leader in industry training, and we continue to pioneer new solutions for a sustainable workforce. Our Technician Apprenticeship Program will do more than attract people to the industry; it will allow us to grow a robust talent pipeline while providing a rewarding career pathway that contributes to a more sustainable world.”

“On behalf of the Department of Labor, I am honored to celebrate the nationally registered Trane Technologies’ Technician Apprenticeship Program, and I commend the company’s commitment to investing in the next generation of commercial HVAC technicians,” said Garfield Garner, Office of Apprenticeships Regional Director for the Southeast, U.S. Department of Labor. “As more technical workers retire, the HVAC industry continues to be challenged with developing the skilled, in-demand talent needed to bridge this gap. Robust registered apprenticeship programs such as the Technician Apprenticeship Program help accelerate this critical need, while creating generational value for apprentices, employers and communities alike.”

Following its inaugural launch earlier this year with nearly 30 apprentices in 16 states, the Technician Apprenticeship Program’s second cohort now boasts over 80 apprentices in 26 states. More than 70 Trane Commercial HVAC technicians are also participating as mentors.

U.S. Department of Labor Regional Director Garfield Garner and Rep. Alma Adams (D-NC) joined Trane Technologies’ chair and CEO, Dave Regnery, other company executives and current apprentices at Bank of America Stadium for an official signing ceremony to recognize the program’s registration milestone. Home to both the Carolina Panthers and innovative, energy efficient solutions from Trane, the stadium demonstrates the types of systems apprentices will work on in the future.

Through the company’s 2030 Sustainability Commitments, including its Opportunity for All pledge, Trane Technologies is committed to helping employees gain better economic opportunities by enhancing their professional skills and providing comprehensive learning and development solutions designed to further support career growth. In 2022, Trane Technologies’ transitioned its tuition support approach from reimbursement to advancement and expanded the program to include technical trade certifications.

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About Trane Technologies 
Trane Technologies is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more on Trane Technologies, visit www.tranetechnologies.com.

Forward Looking Statements 
This news release includes “forward-looking statements” within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our apprenticeship and training initiatives, our sustainability commitments and the impact of these commitments. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2022, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. We assume no obligation to update these forward-looking statements.