Month: February 2024

ESG in Action

A new approach to environmental, social and governance (ESG) research could ease investors’ frustrations with sourcing and evaluating the data required for objective credit analysis. Thanks to a surge in company reporting, ESG metrics can now be quantified and incorporated into analyses that were historically rooted in fundamental research alone. AllianceBernstein’s proprietary research tool, PRISM, does just that, putting robust, contextualized ESG data at portfolio managers’ fingertips to enable better—and faster—decision-making.

75% more companies reported ESG metrics in 2021 than in 2015

179 metrics that PRISM draws on in its ESG assessments

95%–99% coverage by PRISM of the global credit universe

Authors

Patrick O’Connell, CFA| Director—Fixed Income Responsible Investing Research

Tiffanie Wong, CFA| Director—Fixed Income Responsible Investing Portfolio Management; Director—US Investment-Grade Credit

Markus Peters| Director of Fixed Income Business Development and Strategy—Responsible Investing

Investors weighing companies’ ESG exposures often feel frustrated by the challenges of either sourcing data from third-party providers or attempting to do their own research. But their frustrations may be about to ease, thanks to a new approach to ESG research.

A Murky—and Challenging—Data Landscape

There are several inherent difficulties with using third-party ESG scorers. Not all cater to the needs of investors; those that do, tend to overly focus on risks that are relevant to equity, not fixed-income, investors. Data providers are notoriously tight-lipped about how they arrive at their scores. And investors often find that there’s little similarity between different providers’ assessments of the same company; it’s hard to say whose score is more accurate.

The in-house research solution has also presented challenges. Without clear frameworks and processes for sorting and managing data (or lack thereof), ESG analyses tend to be both highly subjective and vague.

Thankfully, there’s been a proliferation of ESG data in recent years: since 2015, roughly 75% more companies in the major credit universe1 now report at least some ESG metrics. This heralds a sea change in how credit investors can conduct ESG analysis. How can investors capture, analyze and effectively evaluate so much additional information?

The answer, in our view, lies in rethinking the approach to ESG analysis. It’s been deeply rooted in fundamental credit research for a long time, but that must evolve if investors are to harvest the ESG data opportunity without falling victim to the same shortcomings as before. Making sense of the vast volume of data requires a scalable and consistent approach.

PRISM Shines a Brighter Light

This can be achieved by incorporating quantitative research into the process, as we do with PRISM, our proprietary credit research tool, which includes ESG in its broader credit assessments and provides an ESG score for nearly every issuer. PRISM takes advantage of the fact that the increase in ESG data has created the critical mass necessary for data to be inputted quantitatively.

There are, in our view, a number of benefits to this approach:

It performs transparent, scalable and consistent processing of large volumes of ESG data that would be beyond the capacity of most fundamental credit research teams.Combined with big data capabilities, it covers 95% to 99%2 of the universe of investment-grade, high-yield and emerging-market corporate bonds, including small and unlisted companies—more than is typically available through third-party providers.It provides meaningful comparisons between issuers’ ESG risks, even when the issuers are from different industries.It creates insights specifically tailored to credit investors.By enabling nuanced comparisons between companies and industries, and by freeing analysts from data-gathering to do more valuable work, it adds to the power of active investment strategies.

To understand these benefits, it helps to know a little about how PRISM works.

A More Systematic, Less Subjective Approach

PRISM uses a map or matrix that illustrates the materiality of ESG factors according to industries and companies. The matrix draws on the fundamental research of AB’s in-house securities analysts, as well as specialist ESG perspectives provided by AB’s Responsibility team and Columbia University’s Climate School, with which AB has had a close working relationship since 2017.

The map helps to generate suggested factor weights and scoring ranges for individual industries, which are used to determine individual issuers’ ESG scores. (We describe how the scoring works in more detail below.)

Using big-data analysis, specialist ESG expertise and comprehensive financial research, PRISM can capture relevant data systematically. And, by inputting the data quantitatively, it can generate ESG scores that are consistent and comparable across industries and issuers, and less subjective than would be the case for scores arrived at solely by fundamental research.

This frees up credit research analysts from the time-consuming task of researching multiple ESG data points manually. They can focus instead on responsibilities that add more value, such as engaging directly with corporate issuers to gain unique, forward-looking insights.

The combined quantitative and fundamental approach, in our view, can lead to sharper insights and more nuanced evaluations of risk and opportunity than would be possible with a fundamental-only analysis.

Making ESG Comparisons Meaningful

The suggested ESG industry scoring ranges not only help to ensure consistency but also provide for comparison across industries and issuers. An alternative approach, which some data providers take, is to score individual issuers against other issuers in their own industries. But siloing industries can lead to anomalies: For example, an oil company that emits high levels of CO2 may receive a lower environmental score than a less emissions-intensive software company. It doesn’t take much for the oil company’s lower E score to be mistaken for having lower environmental risk than the software company. PRISM’s industry scores ensure that comparisons between companies are meaningful.

The scoring process links the materiality matrix to measurable ESG metrics. PRISM can draw on 179 metrics in total, but not all are relevant, or evenly relevant, across industries, because industries are differently exposed to environmental or social risks and opportunities. On the other hand, governance issues tend not to be industry specific, so PRISM takes an industry-agnostic approach to G scores.

Using only those metrics considered to be financially material, PRISM weights them according to their materiality for each industry. It assigns scores in each ESG assessment pillar based on 10 overarching material factors (Display), including governance factors that are specifically tailored to credit investors.

This approach allows us to compare, for example, industries’ environmental risks against a commonly used carbon intensity metric, such as CO2 emissions per sales in US-dollar terms. This results in suggested score ranges for each industry. The range for airlines, for example, is 1.2 to 4.7 (Display).

But nuance is important. Simple carbon intensity figures may generate conclusions that could mislead investors on the risks and opportunities faced by different airlines. We believe that emissions per passenger kilometer flown is a better representation of an airline’s ability to be fuel efficient, because it strips out the impact of ticket-pricing power. For example, while the low-cost carrier in the Display above falls toward the high end in terms of emissions per revenue, its emissions per passenger kilometer flown are low relative to its competitors.

In this way, an issuer’s E and S scores depend on both the absolute suggested scoring range for its industry and where the issuer falls within that range.

Better Engagement, Faster Decision-Making

In our own experience as active investors, we’ve found that PRISM better arms our analysts for their engagements with issuers, making it more difficult for companies’ management teams to cherry-pick data that puts their ESG credentials in the most favorable light.

And ultimately, PRISM puts robust, contextualized ESG data at portfolio managers’ fingertips to enable better—and faster—decision-making.

1The data are sourced from a count of issuer companies’ reporting of four ESG datapoints (Scope 1 & 2 emissions, Scope 3 emissions, water usage, and health and safety “Lost Time Incident Rate”) represented in the following indices: Bloomberg Global Aggregate Bond, Bloomberg US High Yield 2% Issuer Cap, Bloomberg Euro High Yield 2% Issuer Cap, JP Morgan Corporate Emerging Market Bond Broad Diversified and FTSE TMX Canada Universal Bond. The universe represents a sample size of approximately 3,800 unique issuing entities (as of December 31, 2021) and summarizes the total data points reported. Source: MSCI and AB 

2Bloomberg Global Aggregate Bond Index: 96%; Bloomberg US High Yield 2% Issuer Ca: 98%; Bloomberg Euro High Yield 2% Issuer Cap: 98%; JP Morgan Corporate Emerging Market Bond Index Broad Diversified: 96%; and FTSE TMX Canada Universal Bond Index: 96%.

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 change over time.

Learn more about AB’s approach to responsibility here.

ESG in Action

A new approach to environmental, social and governance (ESG) research could ease investors’ frustrations with sourcing and evaluating the data required for objective credit analysis. Thanks to a surge in company reporting, ESG metrics can now be quantified and incorporated into analyses that were historically rooted in fundamental research alone. AllianceBernstein’s proprietary research tool, PRISM, does just that, putting robust, contextualized ESG data at portfolio managers’ fingertips to enable better—and faster—decision-making.

75% more companies reported ESG metrics in 2021 than in 2015

179 metrics that PRISM draws on in its ESG assessments

95%–99% coverage by PRISM of the global credit universe

Authors

Patrick O’Connell, CFA| Director—Fixed Income Responsible Investing Research

Tiffanie Wong, CFA| Director—Fixed Income Responsible Investing Portfolio Management; Director—US Investment-Grade Credit

Markus Peters| Director of Fixed Income Business Development and Strategy—Responsible Investing

Investors weighing companies’ ESG exposures often feel frustrated by the challenges of either sourcing data from third-party providers or attempting to do their own research. But their frustrations may be about to ease, thanks to a new approach to ESG research.

A Murky—and Challenging—Data Landscape

There are several inherent difficulties with using third-party ESG scorers. Not all cater to the needs of investors; those that do, tend to overly focus on risks that are relevant to equity, not fixed-income, investors. Data providers are notoriously tight-lipped about how they arrive at their scores. And investors often find that there’s little similarity between different providers’ assessments of the same company; it’s hard to say whose score is more accurate.

The in-house research solution has also presented challenges. Without clear frameworks and processes for sorting and managing data (or lack thereof), ESG analyses tend to be both highly subjective and vague.

Thankfully, there’s been a proliferation of ESG data in recent years: since 2015, roughly 75% more companies in the major credit universe1 now report at least some ESG metrics. This heralds a sea change in how credit investors can conduct ESG analysis. How can investors capture, analyze and effectively evaluate so much additional information?

The answer, in our view, lies in rethinking the approach to ESG analysis. It’s been deeply rooted in fundamental credit research for a long time, but that must evolve if investors are to harvest the ESG data opportunity without falling victim to the same shortcomings as before. Making sense of the vast volume of data requires a scalable and consistent approach.

PRISM Shines a Brighter Light

This can be achieved by incorporating quantitative research into the process, as we do with PRISM, our proprietary credit research tool, which includes ESG in its broader credit assessments and provides an ESG score for nearly every issuer. PRISM takes advantage of the fact that the increase in ESG data has created the critical mass necessary for data to be inputted quantitatively.

There are, in our view, a number of benefits to this approach:

It performs transparent, scalable and consistent processing of large volumes of ESG data that would be beyond the capacity of most fundamental credit research teams.Combined with big data capabilities, it covers 95% to 99%2 of the universe of investment-grade, high-yield and emerging-market corporate bonds, including small and unlisted companies—more than is typically available through third-party providers.It provides meaningful comparisons between issuers’ ESG risks, even when the issuers are from different industries.It creates insights specifically tailored to credit investors.By enabling nuanced comparisons between companies and industries, and by freeing analysts from data-gathering to do more valuable work, it adds to the power of active investment strategies.

To understand these benefits, it helps to know a little about how PRISM works.

A More Systematic, Less Subjective Approach

PRISM uses a map or matrix that illustrates the materiality of ESG factors according to industries and companies. The matrix draws on the fundamental research of AB’s in-house securities analysts, as well as specialist ESG perspectives provided by AB’s Responsibility team and Columbia University’s Climate School, with which AB has had a close working relationship since 2017.

The map helps to generate suggested factor weights and scoring ranges for individual industries, which are used to determine individual issuers’ ESG scores. (We describe how the scoring works in more detail below.)

Using big-data analysis, specialist ESG expertise and comprehensive financial research, PRISM can capture relevant data systematically. And, by inputting the data quantitatively, it can generate ESG scores that are consistent and comparable across industries and issuers, and less subjective than would be the case for scores arrived at solely by fundamental research.

This frees up credit research analysts from the time-consuming task of researching multiple ESG data points manually. They can focus instead on responsibilities that add more value, such as engaging directly with corporate issuers to gain unique, forward-looking insights.

The combined quantitative and fundamental approach, in our view, can lead to sharper insights and more nuanced evaluations of risk and opportunity than would be possible with a fundamental-only analysis.

Making ESG Comparisons Meaningful

The suggested ESG industry scoring ranges not only help to ensure consistency but also provide for comparison across industries and issuers. An alternative approach, which some data providers take, is to score individual issuers against other issuers in their own industries. But siloing industries can lead to anomalies: For example, an oil company that emits high levels of CO2 may receive a lower environmental score than a less emissions-intensive software company. It doesn’t take much for the oil company’s lower E score to be mistaken for having lower environmental risk than the software company. PRISM’s industry scores ensure that comparisons between companies are meaningful.

The scoring process links the materiality matrix to measurable ESG metrics. PRISM can draw on 179 metrics in total, but not all are relevant, or evenly relevant, across industries, because industries are differently exposed to environmental or social risks and opportunities. On the other hand, governance issues tend not to be industry specific, so PRISM takes an industry-agnostic approach to G scores.

Using only those metrics considered to be financially material, PRISM weights them according to their materiality for each industry. It assigns scores in each ESG assessment pillar based on 10 overarching material factors (Display), including governance factors that are specifically tailored to credit investors.

This approach allows us to compare, for example, industries’ environmental risks against a commonly used carbon intensity metric, such as CO2 emissions per sales in US-dollar terms. This results in suggested score ranges for each industry. The range for airlines, for example, is 1.2 to 4.7 (Display).

But nuance is important. Simple carbon intensity figures may generate conclusions that could mislead investors on the risks and opportunities faced by different airlines. We believe that emissions per passenger kilometer flown is a better representation of an airline’s ability to be fuel efficient, because it strips out the impact of ticket-pricing power. For example, while the low-cost carrier in the Display above falls toward the high end in terms of emissions per revenue, its emissions per passenger kilometer flown are low relative to its competitors.

In this way, an issuer’s E and S scores depend on both the absolute suggested scoring range for its industry and where the issuer falls within that range.

Better Engagement, Faster Decision-Making

In our own experience as active investors, we’ve found that PRISM better arms our analysts for their engagements with issuers, making it more difficult for companies’ management teams to cherry-pick data that puts their ESG credentials in the most favorable light.

And ultimately, PRISM puts robust, contextualized ESG data at portfolio managers’ fingertips to enable better—and faster—decision-making.

1The data are sourced from a count of issuer companies’ reporting of four ESG datapoints (Scope 1 & 2 emissions, Scope 3 emissions, water usage, and health and safety “Lost Time Incident Rate”) represented in the following indices: Bloomberg Global Aggregate Bond, Bloomberg US High Yield 2% Issuer Cap, Bloomberg Euro High Yield 2% Issuer Cap, JP Morgan Corporate Emerging Market Bond Broad Diversified and FTSE TMX Canada Universal Bond. The universe represents a sample size of approximately 3,800 unique issuing entities (as of December 31, 2021) and summarizes the total data points reported. Source: MSCI and AB 

2Bloomberg Global Aggregate Bond Index: 96%; Bloomberg US High Yield 2% Issuer Ca: 98%; Bloomberg Euro High Yield 2% Issuer Cap: 98%; JP Morgan Corporate Emerging Market Bond Index Broad Diversified: 96%; and FTSE TMX Canada Universal Bond Index: 96%.

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 change over time.

Learn more about AB’s approach to responsibility here.

National Grid

MELVILLE, N.Y. /3BL/ – As part of National Grid’s ongoing Project C community commitment, the company launched a Youth Spaces Competition for Long Island-based non-profit organizations to submit applications and short videos on their plans to upgrade physical space designated to providing programs and services for local youth. The local community will vote on a winner to receive a $25,000 grant to make the desired improvements and five runners up to each receive $5,000 grants.

“National Grid is partnering with the Long Island community to provide resources for spaces dedicated to bringing young people together to inspire, uplift and create inclusive change,” said Brian Sapp, National Grid’s Director of External Affairs. “Through Project C, we partner with communities to build a better and more equitable future for our youth. Our enriching spaces program is a great opportunity to reward Long Island small non-profits for the great work they do every day.”

National Grid will award a $25,000 grant to the winning non-profit organization. Five runners up will each be awarded $5,000 for improvements to a youth-focused space, whether it be for equipment, facility renovations or other upgrades.

The application period is open for qualifying non-profit Long Island organizations. Applicants have until March 1, 2024, to submit a brief application with a two-minute video explaining their project and why their organization deserves to win.

A committee of judges made up of National Grid employees and Long Island community leaders will select the six projects that closely align with the company’s Project C mission and values, especially as it relates to fighting for social and racial justice. The finalists will be available online for the community to vote to determine the competition winter. The community will be invited to vote from March 25-29, 2024.

Eligibility

To be eligible for funding under Project C Youth Spaces Competition, a Long Island non-profit organization must meet the following criteria:

501(c)3, 501(c)4 or 501(c)6 tax statusDemonstrates a positive impact on youth in their communityIdentifies a physically defined space in need of a refreshHas a maximum $2 million in organizational budget.

A full list of eligibility requirements, access to the application form and a contact for questions is available at Project C Youth Spaces Competition.

About National Grid

National Grid (NYSE: NGG) is an electricity, natural gas, and clean energy delivery company serving more than 20 million people through our networks in New York and Massachusetts. National Grid is focused on building a smarter, stronger, cleaner energy future — transforming our networks with more reliable and resilient energy solutions to meet state climate goals and reduce greenhouse gas emissions.

For more information, please visit our website, follow us on X (formerly Twitter), watch us on YouTube, like us on Facebook and find us on Instagram.

Media Contacts

Wendy Frigeria 
Downstate New York 
(516) 545-5052 
Email

National Grid

MELVILLE, N.Y. /3BL/ – As part of National Grid’s ongoing Project C community commitment, the company launched a Youth Spaces Competition for Long Island-based non-profit organizations to submit applications and short videos on their plans to upgrade physical space designated to providing programs and services for local youth. The local community will vote on a winner to receive a $25,000 grant to make the desired improvements and five runners up to each receive $5,000 grants.

“National Grid is partnering with the Long Island community to provide resources for spaces dedicated to bringing young people together to inspire, uplift and create inclusive change,” said Brian Sapp, National Grid’s Director of External Affairs. “Through Project C, we partner with communities to build a better and more equitable future for our youth. Our enriching spaces program is a great opportunity to reward Long Island small non-profits for the great work they do every day.”

National Grid will award a $25,000 grant to the winning non-profit organization. Five runners up will each be awarded $5,000 for improvements to a youth-focused space, whether it be for equipment, facility renovations or other upgrades.

The application period is open for qualifying non-profit Long Island organizations. Applicants have until March 1, 2024, to submit a brief application with a two-minute video explaining their project and why their organization deserves to win.

A committee of judges made up of National Grid employees and Long Island community leaders will select the six projects that closely align with the company’s Project C mission and values, especially as it relates to fighting for social and racial justice. The finalists will be available online for the community to vote to determine the competition winter. The community will be invited to vote from March 25-29, 2024.

Eligibility

To be eligible for funding under Project C Youth Spaces Competition, a Long Island non-profit organization must meet the following criteria:

501(c)3, 501(c)4 or 501(c)6 tax statusDemonstrates a positive impact on youth in their communityIdentifies a physically defined space in need of a refreshHas a maximum $2 million in organizational budget.

A full list of eligibility requirements, access to the application form and a contact for questions is available at Project C Youth Spaces Competition.

About National Grid

National Grid (NYSE: NGG) is an electricity, natural gas, and clean energy delivery company serving more than 20 million people through our networks in New York and Massachusetts. National Grid is focused on building a smarter, stronger, cleaner energy future — transforming our networks with more reliable and resilient energy solutions to meet state climate goals and reduce greenhouse gas emissions.

For more information, please visit our website, follow us on X (formerly Twitter), watch us on YouTube, like us on Facebook and find us on Instagram.

Media Contacts

Wendy Frigeria 
Downstate New York 
(516) 545-5052 
Email

A $300,000 investment from KeyBank will help support growth and expansion of a culinary apprenticeship program at Foodlink. This grant is part of KeyBank’s commitment to invest $40 billion in the communities it serves.

The Foodlink Career Fellowship creates pathways to prosperity for individuals with barriers to sustainable employment. The year-long, NYS-certified culinary apprenticeship program equips participants with specific skills and nationally recognized certifications that will result in career opportunities in the growing food industry. 

“KeyBank is proud to support the transformative work that Foodlink is doing through the Career Fellowship Program,” said Vince Lecce, KeyBank Rochester Market President. “Their innovative work is creating hope and opportunity for many in our community, providing them with skills they need to succeed in the rewarding culinary field.”

“On behalf of the Foodlink Career Fellowship team, we’re grateful to receive support from KeyBank,” said Julia Tedesco, President & CEO of Foodlink. “With this investment, we are able to create more opportunities for individuals seeking to reach their culinary goals and build healthier communities.”  

In addition to specialized culinary career training, Fellows receive essential soft-skills coaching, an externship opportunity, and wrap-around human services assistance, including both mental health and financial supports. Upon graduation, each Fellow will be a well-prepared candidate for some of the largest employers in the region, and they will be positioned to attain middle-skills positions with career mobility. The program has established a robust alumni network that ensures staff maintain ongoing communication and relationships with Fellows who have graduated. 

The Foodlink Career Fellowship is grounded in the following strategies: 

Person-Centered – Individualized career plans, development of soft skillsPeer Support – Opportunity to create a supportive peer group with shared goalsCommunity Support – Fellows are nominated by community-based organizations with collaborative case managementIndustry Guidance – Partner employers engage in creation and facilitation of the program and tailor training to regional needsPower of Food – Leverage Foodlink’s resources, infrastructure, and built-in programs to develop hard skills 

 This investment from KeyBank will help increase the number of Fellows and graduates, expand recruitment efforts, and provide more wrap-around support services.

Since 2017, KeyBank has made more than $727 million in investments in the Rochester market, supporting affordable housing and community development projects; small business and home lending to low-to-moderate income individuals and communities, and transformative philanthropy.

Read more about KeyBank’s investment in Foodlink from WROC-TVRead more about KeyBank’s investment in Foodlink from the Rochester Business JournalLearn more about KeyBank’s commitment to helping clients and communities thrive

ABOUT KEYBANK

KeyBank’s roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $188 billion at December 31, 2023. 

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC. 

ABOUT FOODLINK

Foodlink is a Rochester-based nonprofit dedicated to ending hunger and building healthier communities. We serve as the hub of the emergency food system across a 10-county service area and administer many programs and initiatives that address the root causes of food insecurity, including chronic poverty and systemic racism. Learn more about how we are transforming lives and creating healthy futures for every community we serve at www.FoodlinkNY.org, or follow us on Facebook, X or Instagram at @foodlinkny. 

A $300,000 investment from KeyBank will help support growth and expansion of a culinary apprenticeship program at Foodlink. This grant is part of KeyBank’s commitment to invest $40 billion in the communities it serves.

The Foodlink Career Fellowship creates pathways to prosperity for individuals with barriers to sustainable employment. The year-long, NYS-certified culinary apprenticeship program equips participants with specific skills and nationally recognized certifications that will result in career opportunities in the growing food industry. 

“KeyBank is proud to support the transformative work that Foodlink is doing through the Career Fellowship Program,” said Vince Lecce, KeyBank Rochester Market President. “Their innovative work is creating hope and opportunity for many in our community, providing them with skills they need to succeed in the rewarding culinary field.”

“On behalf of the Foodlink Career Fellowship team, we’re grateful to receive support from KeyBank,” said Julia Tedesco, President & CEO of Foodlink. “With this investment, we are able to create more opportunities for individuals seeking to reach their culinary goals and build healthier communities.”  

In addition to specialized culinary career training, Fellows receive essential soft-skills coaching, an externship opportunity, and wrap-around human services assistance, including both mental health and financial supports. Upon graduation, each Fellow will be a well-prepared candidate for some of the largest employers in the region, and they will be positioned to attain middle-skills positions with career mobility. The program has established a robust alumni network that ensures staff maintain ongoing communication and relationships with Fellows who have graduated. 

The Foodlink Career Fellowship is grounded in the following strategies: 

Person-Centered – Individualized career plans, development of soft skillsPeer Support – Opportunity to create a supportive peer group with shared goalsCommunity Support – Fellows are nominated by community-based organizations with collaborative case managementIndustry Guidance – Partner employers engage in creation and facilitation of the program and tailor training to regional needsPower of Food – Leverage Foodlink’s resources, infrastructure, and built-in programs to develop hard skills 

 This investment from KeyBank will help increase the number of Fellows and graduates, expand recruitment efforts, and provide more wrap-around support services.

Since 2017, KeyBank has made more than $727 million in investments in the Rochester market, supporting affordable housing and community development projects; small business and home lending to low-to-moderate income individuals and communities, and transformative philanthropy.

Read more about KeyBank’s investment in Foodlink from WROC-TVRead more about KeyBank’s investment in Foodlink from the Rochester Business JournalLearn more about KeyBank’s commitment to helping clients and communities thrive

ABOUT KEYBANK

KeyBank’s roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $188 billion at December 31, 2023. 

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC. 

ABOUT FOODLINK

Foodlink is a Rochester-based nonprofit dedicated to ending hunger and building healthier communities. We serve as the hub of the emergency food system across a 10-county service area and administer many programs and initiatives that address the root causes of food insecurity, including chronic poverty and systemic racism. Learn more about how we are transforming lives and creating healthy futures for every community we serve at www.FoodlinkNY.org, or follow us on Facebook, X or Instagram at @foodlinkny. 

Trade is the global economy’s lifeblood, with maritime transport at its core. But the carbon footprint of port operations and shipping is substantial, with shipping accounting for nearly 3% of global greenhouse gas emissions,  according to the Organisation for Economic Co-operation and Development (OECD). 

And with demand for maritime trade expected to triple by 2050, the shipping industry faces urgent pressure to evolve and address its environmental impact, signaling a pivotal moment for transformation towards sustainability.

DP World in Ecuador is proud to stand as an advocate for environmental sustainability across its port and terminal operations. In Ecuador, environmental sustainability is paramount due to its rich biodiversity and the vulnerability of its ecosystems to climate change. Backed by a comprehensive decarbonization strategy, we at DP World are committed to balancing economic growth with environmental stewardship, as we work to lead the way in reducing CO2 emissions and enhancing operational efficiency. 

Our approach is comprehensive and holistic, as our initiatives extend across various domains, from renewable energy adoption and energy optimization to waste management and strategic partnerships. This approach not only underscores our dedication to environmental stewardship – we are proud to report that our efforts have successfully curtailed more than 42,300 tons of CO2 emissions – but they help position DP World as a leader in sustainable port operations and logistics services.

Renewable Energy Innovations

Our terminal at the Port of Posorja leads by example. Our on-site installation of 74 solar panels allows us to generate our own solar energy, preventing more than three tons of CO2 from entering the atmosphere every year.  

We have also invested in hydroelectric energy. Since August 2020, our port terminal in Posorja has been powered by renewable energy from a nearby hydroelectric plant, which prevents more than 17,000 tons of CO2 every year. These initiatives significantly cut CO2 emissions, contributing to our vision of sustainable port operations.

Mangrove Restoration: ‘Sembrando Vida’

Mangroves are important to ecosystem restoration because they both produce large amounts of oxygen and store large amounts of carbon. As part of our “Sembrando Vida” project, we planted more than 230,000 mangrove seedlings across 105 hectares of land across El Morro and Puná Island, capturing 2,900 tons of CO2. 

This project combats climate change and helps protect the more than 400 families living in the surrounding communities. Sembrando Vida earned us the prestigious 2022 IAPH Sustainability Award in the Climate & Energy Category, one of the top sustainability awards in the port industry.

Operational Excellence for Environmental Benefit

DP World Posorja is currently the second most efficient port in the region and ranks 19th globally, according to the World Bank. Our commitment to operational efficiency leads to lower emissions, showcasing our commitment to energy optimization and environmental stewardship.

Innovative Freight Matching System

Our Freight Matching System (FMS) optimizes dual cargo movements (inbound and outbound) to reduce unnecessary trips – since the port terminal in Posorja started its operations back in 2019, we have avoided more than 64,725 land-based trips to and from DP World Posorja. This, in turn, prevented more than 22,000 tons of CO2 emissions, demonstrating our innovative approach to sustainable logistics.

Organic Waste Management: A Dual-Impact Initiative

This collaboration with the local community touts both social and environmental benefits, by enabling food waste at the port to be repurposed for local pig farming. By diverting waste from the landfill, we prevent the generation of more than 24 tons of CO2 and support the community, highlighting our commitment to environmental and social responsibility.

Pioneering the Ecuador Carbon Zero Program

We are proud to be strategic allies of the Ecuador Carbon Zero Program (PECC), which was developed by the Ministry of Environment, Water, and Ecological Transition to recognize companies through three levels of action in carbon quantification, reduction, and neutrality. This partnership underscores our leadership in sustainability and carbon mitigation.

In November 2023, we were recognized with a prestigious distinctive by the Ministry of Environment, Water, and Ecological Transition for the Quantification of the carbon footprint of our terminal in Posorja, thus becoming the first Ecuadorian container port to measure its carbon footprint and the first DP World port in the region to do so through three international scopes.

Our Journey Continues

DP World Ecuador’s commitment to sustainability stands as testament to its forward-thinking approach to environmental responsibility. Through these initiatives, we’re not just investing in decarbonization; we’re investing in a sustainable future for our planet, our people, and the communities we serve. These efforts demonstrate our dedication to reducing our carbon footprint, while also setting a benchmark for the industry. Join us as we pave the way to a greener, more sustainable world.

Trade is the global economy’s lifeblood, with maritime transport at its core. But the carbon footprint of port operations and shipping is substantial, with shipping accounting for nearly 3% of global greenhouse gas emissions,  according to the Organisation for Economic Co-operation and Development (OECD). 

And with demand for maritime trade expected to triple by 2050, the shipping industry faces urgent pressure to evolve and address its environmental impact, signaling a pivotal moment for transformation towards sustainability.

DP World in Ecuador is proud to stand as an advocate for environmental sustainability across its port and terminal operations. In Ecuador, environmental sustainability is paramount due to its rich biodiversity and the vulnerability of its ecosystems to climate change. Backed by a comprehensive decarbonization strategy, we at DP World are committed to balancing economic growth with environmental stewardship, as we work to lead the way in reducing CO2 emissions and enhancing operational efficiency. 

Our approach is comprehensive and holistic, as our initiatives extend across various domains, from renewable energy adoption and energy optimization to waste management and strategic partnerships. This approach not only underscores our dedication to environmental stewardship – we are proud to report that our efforts have successfully curtailed more than 42,300 tons of CO2 emissions – but they help position DP World as a leader in sustainable port operations and logistics services.

Renewable Energy Innovations

Our terminal at the Port of Posorja leads by example. Our on-site installation of 74 solar panels allows us to generate our own solar energy, preventing more than three tons of CO2 from entering the atmosphere every year.  

We have also invested in hydroelectric energy. Since August 2020, our port terminal in Posorja has been powered by renewable energy from a nearby hydroelectric plant, which prevents more than 17,000 tons of CO2 every year. These initiatives significantly cut CO2 emissions, contributing to our vision of sustainable port operations.

Mangrove Restoration: ‘Sembrando Vida’

Mangroves are important to ecosystem restoration because they both produce large amounts of oxygen and store large amounts of carbon. As part of our “Sembrando Vida” project, we planted more than 230,000 mangrove seedlings across 105 hectares of land across El Morro and Puná Island, capturing 2,900 tons of CO2. 

This project combats climate change and helps protect the more than 400 families living in the surrounding communities. Sembrando Vida earned us the prestigious 2022 IAPH Sustainability Award in the Climate & Energy Category, one of the top sustainability awards in the port industry.

Operational Excellence for Environmental Benefit

DP World Posorja is currently the second most efficient port in the region and ranks 19th globally, according to the World Bank. Our commitment to operational efficiency leads to lower emissions, showcasing our commitment to energy optimization and environmental stewardship.

Innovative Freight Matching System

Our Freight Matching System (FMS) optimizes dual cargo movements (inbound and outbound) to reduce unnecessary trips – since the port terminal in Posorja started its operations back in 2019, we have avoided more than 64,725 land-based trips to and from DP World Posorja. This, in turn, prevented more than 22,000 tons of CO2 emissions, demonstrating our innovative approach to sustainable logistics.

Organic Waste Management: A Dual-Impact Initiative

This collaboration with the local community touts both social and environmental benefits, by enabling food waste at the port to be repurposed for local pig farming. By diverting waste from the landfill, we prevent the generation of more than 24 tons of CO2 and support the community, highlighting our commitment to environmental and social responsibility.

Pioneering the Ecuador Carbon Zero Program

We are proud to be strategic allies of the Ecuador Carbon Zero Program (PECC), which was developed by the Ministry of Environment, Water, and Ecological Transition to recognize companies through three levels of action in carbon quantification, reduction, and neutrality. This partnership underscores our leadership in sustainability and carbon mitigation.

In November 2023, we were recognized with a prestigious distinctive by the Ministry of Environment, Water, and Ecological Transition for the Quantification of the carbon footprint of our terminal in Posorja, thus becoming the first Ecuadorian container port to measure its carbon footprint and the first DP World port in the region to do so through three international scopes.

Our Journey Continues

DP World Ecuador’s commitment to sustainability stands as testament to its forward-thinking approach to environmental responsibility. Through these initiatives, we’re not just investing in decarbonization; we’re investing in a sustainable future for our planet, our people, and the communities we serve. These efforts demonstrate our dedication to reducing our carbon footprint, while also setting a benchmark for the industry. Join us as we pave the way to a greener, more sustainable world.

News Summary

Owned and operated by IGNIS, Cisco anticipates that the Spanish solar plant will provide enough solar energy to match 100% of its European operations’ annual electricity needs*The deal involves a 37-MWac new-built solar plant in a Virtual Power Purchase Agreement (VPPA) which will generate approximately 80,000 MWh of electricity per year (60,000 MWh allocated to Cisco)This milestone helps advance Cisco’s net-zero goal and generates local impact, creating jobs and innovation in a rural area key to the Spanish national digitization agenda.

AMSTERDAM, February 20, 2024 /3BL/ – Cisco has signed a 15-year agreement to purchase approximately 60,000 MWh per year of solar energy from Spanish renewable energy provider, IGNIS. This commitment from Cisco has enabled IGNIS to build a new solar plant in the “España Vaciada” or “empty Spain” region of Teruel (Aragón), a key area of investment and focus for the Spanish Government. The plant is expected to provide enough solar energy to match 100% of annual electricity needs* for Cisco’s European operations for the next 15 years.

Global and Local Impact

A key pillar of Cisco’s environmental sustainability strategy is to accelerate the transition to clean energy, moving away from fossil fuels toward wind, solar, and other renewable energy sources. Over the past few years, Cisco has executed numerous long-term renewable energy contracts, such as power purchase agreements (PPAs), located near its facilities.

The announcement also reinforces Cisco’s commitment to Spain’s digital transformation through projects aimed at fostering innovation and building digital infrastructure. The agreement will add new renewable energy to the Spanish public grid and has helped generate economic growth in the local community, which has supported the project from the start. More than a hundred jobs were created during construction, as well as the creation of a permanent IGNIS team in the region of Aragón. This project not only promotes employment through the park’s operation and maintenance, but will also generate local revenue and foster activity in this “empty” region of Spain.

With an eventual planned production volume of around 80,000 MWh per year (60,000 MWh allocated to Cisco), we expect the solar plant to be fully operational in March 2024. This combines with a portfolio of more than 6 GW of operational assets already managed by IGNIS.

Net Zero Goal

Cisco has been reporting on its environmental impact since 2005. In 2021, Cisco set a goal to reach zero greenhouse gas emissions across our value chain by 2040. Our goal includes all scopes of emissions and is approved by the Science Based Targets initiative under its Corporate Net-Zero Standard, the world’s only framework for corporate net-zero target setting in line with climate science. In our fiscal year 2023, Cisco consumed more than 1.3 million MWh of renewable electricity, making up 91% of its total global electricity demand.

“Our purpose is to power an inclusive future for all, and this agreement is an important moment in our journey to net zero, continuing our transition away from fossil fuels and towards a regenerative future. Long-term agreements like this project enable Cisco to not only reduce our own emissions, but to help increase the renewable capacity available overall. It also reinforces Cisco’s commitment to Spain’s digital transformation and the government’s agenda towards clean energy, being the most impactful multi-year energy contract for Cisco in Europe,” says Mary de Wysocki, Cisco Chief Sustainability Officer.

“Cisco has a long history of investing in Spain’s digital acceleration with projects like Digitaliza, which is in its fourth year, along with the recently announced launch of a next-generation semiconductor design center in Spain. We’re delighted to see this expand to producing renewable energy, and we’re proud to work with IGNIS on a national project that will supply clean energy to Cisco markets in Europe,” states Andreu Vilamitjana, Cisco Spain General Manager.

“This agreement strengthens IGNIS’s contribution to the decarbonization of the economy and sets a milestone in our consolidation as a leading integrated energy company. As a global firm, we are focused on delivering and managing renewable energy projects worldwide, and we’re delighted to work with Cisco and become one of their partners on their road to net zero”, says Santiago Bordiú, CEO Asset and Energy Management of IGNIS.

* Excluding the United Kingdom, Poland, Romania, and Bulgaria, which are not Association of Issuing Bodies (AIB) countries and are therefore not covered by the scope of the Virtual Power Purchase Agreement (VPPA).

Media Contacts 
Ariadna Hernández
Public Relations 
+34 677 45 78 82

View original content here.

News Summary

Owned and operated by IGNIS, Cisco anticipates that the Spanish solar plant will provide enough solar energy to match 100% of its European operations’ annual electricity needs*The deal involves a 37-MWac new-built solar plant in a Virtual Power Purchase Agreement (VPPA) which will generate approximately 80,000 MWh of electricity per year (60,000 MWh allocated to Cisco)This milestone helps advance Cisco’s net-zero goal and generates local impact, creating jobs and innovation in a rural area key to the Spanish national digitization agenda.

AMSTERDAM, February 20, 2024 /3BL/ – Cisco has signed a 15-year agreement to purchase approximately 60,000 MWh per year of solar energy from Spanish renewable energy provider, IGNIS. This commitment from Cisco has enabled IGNIS to build a new solar plant in the “España Vaciada” or “empty Spain” region of Teruel (Aragón), a key area of investment and focus for the Spanish Government. The plant is expected to provide enough solar energy to match 100% of annual electricity needs* for Cisco’s European operations for the next 15 years.

Global and Local Impact

A key pillar of Cisco’s environmental sustainability strategy is to accelerate the transition to clean energy, moving away from fossil fuels toward wind, solar, and other renewable energy sources. Over the past few years, Cisco has executed numerous long-term renewable energy contracts, such as power purchase agreements (PPAs), located near its facilities.

The announcement also reinforces Cisco’s commitment to Spain’s digital transformation through projects aimed at fostering innovation and building digital infrastructure. The agreement will add new renewable energy to the Spanish public grid and has helped generate economic growth in the local community, which has supported the project from the start. More than a hundred jobs were created during construction, as well as the creation of a permanent IGNIS team in the region of Aragón. This project not only promotes employment through the park’s operation and maintenance, but will also generate local revenue and foster activity in this “empty” region of Spain.

With an eventual planned production volume of around 80,000 MWh per year (60,000 MWh allocated to Cisco), we expect the solar plant to be fully operational in March 2024. This combines with a portfolio of more than 6 GW of operational assets already managed by IGNIS.

Net Zero Goal

Cisco has been reporting on its environmental impact since 2005. In 2021, Cisco set a goal to reach zero greenhouse gas emissions across our value chain by 2040. Our goal includes all scopes of emissions and is approved by the Science Based Targets initiative under its Corporate Net-Zero Standard, the world’s only framework for corporate net-zero target setting in line with climate science. In our fiscal year 2023, Cisco consumed more than 1.3 million MWh of renewable electricity, making up 91% of its total global electricity demand.

“Our purpose is to power an inclusive future for all, and this agreement is an important moment in our journey to net zero, continuing our transition away from fossil fuels and towards a regenerative future. Long-term agreements like this project enable Cisco to not only reduce our own emissions, but to help increase the renewable capacity available overall. It also reinforces Cisco’s commitment to Spain’s digital transformation and the government’s agenda towards clean energy, being the most impactful multi-year energy contract for Cisco in Europe,” says Mary de Wysocki, Cisco Chief Sustainability Officer.

“Cisco has a long history of investing in Spain’s digital acceleration with projects like Digitaliza, which is in its fourth year, along with the recently announced launch of a next-generation semiconductor design center in Spain. We’re delighted to see this expand to producing renewable energy, and we’re proud to work with IGNIS on a national project that will supply clean energy to Cisco markets in Europe,” states Andreu Vilamitjana, Cisco Spain General Manager.

“This agreement strengthens IGNIS’s contribution to the decarbonization of the economy and sets a milestone in our consolidation as a leading integrated energy company. As a global firm, we are focused on delivering and managing renewable energy projects worldwide, and we’re delighted to work with Cisco and become one of their partners on their road to net zero”, says Santiago Bordiú, CEO Asset and Energy Management of IGNIS.

* Excluding the United Kingdom, Poland, Romania, and Bulgaria, which are not Association of Issuing Bodies (AIB) countries and are therefore not covered by the scope of the Virtual Power Purchase Agreement (VPPA).

Media Contacts 
Ariadna Hernández
Public Relations 
+34 677 45 78 82

View original content here.