PotlatchDeltic has partnered with United Way for over a decade to raise money for local non-profits. At our corporate office in Spokane, Washington, we hold a United Way Week every year. The Spokane office contributions had a 100% participation rate in 2023 and were augmented through a corporate fifty percent match per dollar contributed. United Way Week also included various activities to promote awareness about United Way’s initiatives and raise additional funds for charities. Several of our Team Members are involved with charitable organizations, and podcasts were produced and broadcasted during the week to educate Team Members on local charitable and volunteer opportunities. The United Way Week team held several other events, which included our annual raffle for donated baskets, a paper airplane contest, and our chili and cornbread cookoff. All of this contributed to the week being a great success, with over $132,000 raised for Spokane County United Way.

Additionally, each year, during United Way Week, our Spokane team also gives back to the community with a day of service. We partnered with Habitat for Humanity in Spokane this year to volunteer for a build day. Teams were organized to assist with installing and caulking siding and conducting some neighborhood cleanup. Volunteers loved working with their hands and people they wouldn’t normally interact with in their day-to-day activities.

We look forward to working with Spokane County United Way and Habitat for Humanity again in 2024.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements within the meaning of the federal securities laws. Words such as “each year,” “every year,” “look forward,” and similar expressions and references to achievement of objectives in the future are intended to identify such forward-looking statements. These statements reflect management’s views of future events based on estimates and assumptions and are therefore subject to known and unknown risks, uncertainties, and other factors, and are not guarantees of future conduct, results, or policies. Please view the Cautionary Statement Regarding Forward-Looking Information in our Annual Report on Form 10-K and in our other filings with the SEC.

Nasdaq

Nasdaq and DNB brought together capital markets leaders for a seminar on the latest trends and topics surrounding ESG. Given the rising demands from stakeholders and the growing expectations of investors, it has become paramount for companies to implement a solid sustainability strategy to mitigate risks and create new business opportunities.

In our panels, we discuss strategies in working towards reaching net zero by 2050.

Opening Remarks
Adam Kostyál, Senior Vice President, NasdaqCorporate View
Karin Larsson, VP & Head of investor relations, Epiroc
Korie Hickel, Head of Sustainability, Olink
Heather Johnson, VP Sustainability & Corporate Social Responsibility, Ericsson
Johanna Orring, Corporate Solutions, NasdaqThe Role of Carbon Removals and Offsets on Our Path to Net Zero
Nina Ahlstrand, Head of Sustainable Finance, DNB (Moderator)
Thomas Thyblad, Head of ESG solutions, Nasdaq
Helena Müller, Co-Head of Sustainability Consulting, AFRYInvestor View
Markus Mild, AVP, European Regulatory Strategy, Nasdaq (Moderator)
Jenny Gustafsson, Director Etikrådet
Kristofer Dreiman, Head of Responsible Investments, Länsförsäkringar
Fredric Nyström, Head of Sustainability & Governance, AP3The Importance of Having Your ESG Strategy in Place
Maria Groschopp Dellwik, Head of Listing, Sweden, Nasdaq (Moderator)
Elin Ljung, Head of Communication & Sustainability, Nordic Capital
Ulrik Hallén Øen, Associate Director Sustainable Finance, DNB
Jenny Järnfeldt, Head of Sustainability, Einride
Lina Håkansdotter, Global Head of Sustainability and Global Affairs, H2GreenSteelClosing Remarks
Johanna Orring, Corporate Solutions, Nasdaq

Watch all keynotes and sessions here.

Originally published on Illumina News Center

It was Fabrice Amedeo’s fourth time sailing the Route de Rhum. The solo race runs 3542 nautical miles, from Guadeloupe in the Southern Caribbean to the port of Saint-Malo in France. He set out on November 9, 2022; if all went well, his 60-foot yacht, the Nexans – Art et Fenêtres, could cross the Atlantic in seven days.

On day four, his ballast exploded. The boat began filling with water; its batteries and electronics failed. Abandoning the race course, Amedeo diverted east to make landfall as soon as possible. Then on day six, another explosion. The cockpit filled with flames and yellow smoke. Amedeo tumbled into his life raft and watched as the yacht sank beneath the waves. After a few hours of helpless drifting, he was able to contact a container ship passing nearby, which came to his rescue. “Death did not want me today,” he later told Yachting World.

In the chaos of the fire, all Amedeo could save from the yacht was his emergency radio and his wedding ring. The scientific equipment he’d had aboard—including an environmental DNA (eDNA) collection kit, and all the samples he’d taken so far—went straight to Davy Jones’ locker.

Turning racers into field scientists

The eDNA kit was the latest iteration of a project from the molecular surveillance team at New Zealand’s Cawthron Institute, led by Xavier Pochon. The institute specializes in science that supports the environment and sustainable development, and Pochon’s team monitors natural ecosystems using DNA metabarcoding, which inspects an environmental sample for both microbes and cells shed by larger organisms, whether those species are previously known or novel. And when it comes to marine biodiversity, Pochon saw a pressing need for more data.

“We greatly lack biological data from the four corners of the world,” he says. “We have amazing models that predict future impacts of climate change, but none of them contain near-real-time biological data collected at sea. If you want to make sense of climate change and understand how marine communities are changing, it’s urgent and essential to look for strong spatiotemporal data.”

Traditional oceanographic research methods require direct visual observation or even physical capture of the species involved, which is slow, expensive, and can be harmful to marine life. Pochon came up with the idea to equip sport sailing vessels with user-friendly tools and a simple procedure for taking seawater samples at key points along their route—a faster, more reliable, and harmless way to track endangered species, monitor pathogens and, over time, show how climate change is shifting species’ geographic range.

Pochon says that sport sailors are a natural fit for this task: “They deeply care about the ocean, because they spend a lot of time out there. They have a deep knowledge on how the environment changes and a thirst for helping science in any way they can.”

His team debuted their first generation of eDNA filtering kits in 2015, but they required the boats to slow to two knots—practically a dead stop. The next version took on a sleeker, torpedo-like shape, which could be dragged behind a boat at up to 12 knots. This was an improvement . . . but racing yachts can speed along at 35 knots. “You can imagine, you’re not going to tow anything behind those vessels,” Pochon says.

One breakthrough came thanks to Austen Thomas, a research scientist at Smith-Root, which had invented capsules that could easily filter a few liters of water and then automatically dry the eDNA, enabling the sample to be sent to a lab at room temperature.

Another came in 2021, when Pochon contacted Fabrice Amedeo, who already collected environmental variables during his races using OceanPack, an “autonomous underway measurement system” that constantly collects data on salinity, temperature, CO2, and dissolved oxygen—even at 35 knots. Pochon convinced Amedeo to add eDNA collection to his races, using their latest filter kit.

DNA collection for beginners

Amedeo’s shipwreck turned out to be just a temporary setback, both for him and for the Cawthron Institute scientists. Shortly after the Route de Rhum, Pochon was contacted by Stefan Raimund, principal ocean science advisor at The Ocean Race. The grueling six-month, 32,000-mile race around the world is the only sporting event that requires all teams to participate in a science program. All five competitors were already set to collect other kinds of environmental data en route, and the one flying the American flag, 11th Hour Racing Team, was interested in using the eDNA kit as well.

Onboard reporter Amory Ross would use the kit during the race’s fourth leg, from Itajai, Brazil, to Newport, Rhode Island, from April 23 to May 10, 2023. They chose this leg because it covered the broadest range of latitudes and sea surface temperatures.

Ross took samples at nine regular intervals. The new kit minimized hands-on time, requiring only a brief diversion in the water flow to the systems measuring other variables. He’d hook up a capsule to the filter, pass two liters of water through, use a manual air pump for one minute to dry the sample, then bag it and label it with their current coordinates.

This time, the plan went off without a hitch. Not only did 11th Hour recover high-quality samples, they also won the race. “This really resonates to me,” Pochon says, “because for the longest time the dialogue was, ‘You either focus on the race or you gather environmental data.’ But you can do both.” Here was proof that racing boats could conduct this kind of scientific work without sacrificing any speed. In addition to eDNA, the competitors in the 2022–23 race took over 4 million measurements of environmental data and hundreds of samples of marine plastic.

The depths revealed

What secrets of the fathomless deep were waiting to be decoded in 11th Hour’s samples? With support from Illumina, Sequench, and Smith-Root, Cawthron Institute’s molecular surveillance team got right to work, extracting 4.7 million DNA sequences and identifying 11,000 species—all in less than two weeks.

Thanks to data already available in public databases, they could use metabarcoding to positively identify organisms from across the tree of life, all the way down to the species level. Even if they came across a previously unidentified species, they could still zero in on its genus.

They screened the samples using four genetic markers: one for bacteria, one for all eukaryotes (that is, any life form with a cell nucleus), one for animals, and one specifically targeting fish and mammals. The diversity they found was astounding—flying fish; deep-sea lancetfish; lanternfish (“Everything from squid to seabirds and whales feed on lanternfish,” Pochon says); the Argentine anchovy, which is at risk from overfishing; a dazzling variety of jellyfish; the elusive moray eel, which migrates thousands of miles to spawn, over routes that remain a mystery; and several kinds of copepods, tiny crustaceans that constitute a vital part of the food chain for most commercially important fish species.

The team was also hoping to find evidence of cetacean activity (dolphins and whales), but their data showed an unexpected abundance of human DNA that drowned out any other mammalian signals—the result of Ross forgetting to use gloves during sample collection.

By overlaying their eDNA dataset with the other variables the boats collected, Pochon’s team identified some areas of concern—for instance, they saw a higher incidence of bacteria involved in plastic degradation at lower latitudes, near Brazil; they saw that parasitic bacteria are strongly correlated with higher sea surface temperature; and they found high densities of Karlodinium veneficum, a toxic phytoplankton that’s associated with increased fish mortality.

The team is particularly interested in identifying invasive species, but Pochon acknowledges that “the full power of integrative analysis will take place once we’re able to equip as many boats as possible.”

Open waters, open access

Pochon hopes this data can be used to show every country in the world how climate change is affecting ocean biodiversity, and encourage governments and institutions to make more effective plans to forestall its collapse. “Oceanographic research vessels can’t go everywhere, but every day at least 10,000 boats are plying oceans all around the world,” he says. “What if you could equip these thousands of vessels with portable, super-simple tools and gather incredible biodiversity information in a much more effective way than we can do today? The technology keeps improving, getting smaller and faster and more hands-free.”

Eventually, the data could culminate in an open-access marine genomic database that could be parsed by users all over the world. “A lot of this—if not all of this—is thanks to biotechnology companies such as Illumina who have pushed the frontiers in the way we can monitor and screen the environment in depth. It’s such an exciting space to be in, because it’s evolving so fast we can hardly follow.”

In the late 1980s, people in Dr. Shyam Sundar’s homeland in eastern India were dying by the hundreds of thousands of a debilitating parasitic disease known as visceral leishmaniasis (VL).

“It was a very, very painful experience,” recalls Shyam, Professor of Medicine at Banaras Hindu University in Varanasi, India. “We used to see 40 to 50 patients every week, but we only had a capacity of 20 beds. We had no means to treat them. It was a very difficult situation.”

The only available treatment was considered highly toxic, requiring multiple applications and a 28-day hospital stay. Shyam resolved to find a better alternative.

In the mid-1990s, Shyam met a Gilead scientist and began a long partnership with the company that would ultimately help revolutionize the landscape for the condition, which is the second-deadliest parasitic disease after malaria. The illness is spread by infected sandflies and can cause fever, weight loss, an enlarged spleen and anemia. If left untreated, it’s fatal more than 95 percent of the time.

Shyam helped conduct research in 2010, showing an innovative approach to the clinical management of VL, which resulted in a New England Journal of Medicine publication. “This was a game-changer,” Shyam says. “It really astonished us to find that this innovative approach could potentially help a lot of people.”

Finding Solutions Against Neglected Tropical Diseases 
VL is one of 20 conditions identified by the WHO as a Neglected Tropical Disease – a widespread disease that occurs in tropical regions and predominantly in low- and lower middle-income countries. In 2012, the WHO launched a campaign to reduce deaths caused by these diseases in Southeast Asia and the Indian subcontinent by 2030. In response, a coalition of organizations and biopharmaceutical companies, including Gilead, joined together in a pledge to meet those goals. They reaffirmed that pledge in 2022 in what is known as the Kigali Declaration.

Since the pledge, Gilead has continued its long history in supporting reducing deaths from VL and controlling other neglected tropical diseases such as cryptococcal meningitis in efforts to advance global health equity. Most recently, the company donated vials of medication and provided financial support for better treatment access and screening in endemic regions such as Bangladesh, Ethiopia, India, Kenya, Nepal and Somalia.

“It’s in our DNA to do the right thing,” says Dennis Israelski, Executive Director and Head of Medical Affairs for Global Patient Solutions at Gilead. “Part of our purpose is to introduce and scale transformative therapies, and help address barriers to care – especially in communities with greatest unmet medical needs.”

The advanced clinical management approaches and additional community efforts have significantly helped reduce the burden of these tropical diseases.

“We went from having hundreds of thousands of people with visceral leishmaniasis to about 800 people,” says Shyam. “In my homeland state of Bihar, once an epicenter of the epidemic, physicians have seen only around 14 new patients thus far this year.”

Addressing Additional Tropical Conditions 
“What we’ve learned through our work in visceral leishmaniasis and other diseases can be applied to the medical management of other neglected tropical diseases that are fatal when left untreated,” Dennis says.

Gilead is partnering with investigators to evaluate the use of these approaches in studying invasive fungal infections in Latin America, Southeast Asia and China. Dennis says these collaborations are a part of Gilead’s ongoing efforts to advance global health equity by finding solutions that reach disproportionally impacted communities.

“We’re dealing with some of the most complex public health problems in low- and lower middle-income countries,” Dennis says. “Our work aims to have profound health impacts among people disproportionally affected by diseases across the globe.”

Originally published by Gilead Sciences

At WWD’s star-studded Apparel and Retail CEO Summit, the SAC’s new editorial director Kaley Roshitsh stepped into the role by moderating a discussion on balancing ethics with metrics in sustainability leadership. The “What Makes a Responsible (And Profitable) Brand,” panel included Amy Williams, CEO of Citizens of Humanity Group, and Stefano Canali, CEO of Canali. Each discussed their company’s approach to furthering sustainability while remaining committed to on-the-ground suppliers.

Williams detailed Citizens of Humanity Group’s commitment to regenerative agriculture — explaining how cotton transcends commodity to become a proving ground for the value of collaboration in advancing the fashion industry’s sustainability goals. The California-based company recently became involved in the “Kiss the Ground” documentary and partnered with the Erewhon grocery chain.

Canali shared his eponymous company’s metrics-first approach to business growth, which has been central to its nearly 90-year history. The Italian menswear brand is invested in a longstanding history of craftsmanship, and Canali considers durability as a testament to its values. The brand also embraces a progressive approach to measuring sustainability, which is demonstrated by Canali Care, which acts as an avenue for data-driven advancements. Over the past two years, Canali invested in life cycle assessments, beginning with a focus on product environmental footprint, and found that raw materials represent two-thirds of the company’s carbon footprint; it is working to decarbonize its supply chain and has committed to near-term targets with the Science Based Targets initiatives.

Roshitsh also attended the day-one closing ceremony, where presenter Jennifer Lawrence was among the A-list attendees and awards were given to Dior creative director Maria Grazia Chiuri, Macy’s Inc. CEO Jeff Gennette, and the Chloé brand.

In its inaugural year, Lakeland Community College’s Begin the Conversation (BTC) program saw success among participants with 11 of the 12 students in the first cohort continuing in the program.

Made possible by funding from The Lakeland Foundation and a $225,000 grant from KeyBank, BTC is an initiative designed to promote a successful higher education experience for prospective students from low-income and minority populations by providing tuition, wraparound support, mentoring and job training at no financial cost to the students. The initiative stemmed from a collaboration of Lake County leaders who came together to address race relations and justice in their communities.

“Throughout the year, our staff worked closely with BTC students offering support and serving as mentors,” explained Lakeland associate provost for student affairs and dean of students Mario Petitti Jr. “We know the support services Lakeland offers have an impact on the success of students. This program was designed with this in mind, and we are happy to see such positive results from this cohort.”

Students participating in the BTC program during the 2022-2023 academic year earned a total of 162 credit hours and on average achieved a 3.29 grade-point average (GPA). Four students in the cohort earned a 4.0 GPA.

Outside the classroom, BTC students are actively involved on campus as student athletes, ambassadors, alternative spring break participants, members of the honor program, Hispanic club and more.

“We are thrilled to see such positive results in the first year of BTC,” said Kelly Lamirand, KeyBank Cleveland Market President. “This program is helping to transform the lives of students throughout Northeast Ohio, and we are proud to continue our support of Lakeland Community College.”

The second BTC cohort, made up of 19 students, is currently underway. The next cohort begins fall 2024.

Read more about KeyBank’s support of Lakeland Community College:

Lakeland’s Begin the Conversation program proves effective in year one | Lakeland Community College

Lakeland Community College’s Begin the Conversation program ‘proves effective’ in year one | The News-Herald

Remote Learning Concierge Program Helps Online Students at Lakeland Community College | Spectrum News

The KFC Foundation is celebrating a groundbreaking achievement as it honors the first graduate from its tuition-free college program. Kevon Pascoe, who started working part-time at his local KFC restaurant while serving as an active-duty logistics officer in the Marine Corps, has earned his master’s degree in business administration from Western Governors University through the program.

The KFC Foundation’s tuition-free college program, in partnership with Western Governors University (WGU), provides KFC restaurant employees* with 100 percent paid tuition when attending WGU to earn their degree. The program is available to every eligible KFC employee who applies and enrolls, with access available beginning day one on the job. WGU offers rolling admissions, so KFC restaurant employees have the flexibility to enroll at any time and begin online courses as soon as they’re ready.

Pascoe, who grew up in Kingston, Jamaica, migrated to the United States with his family in 2010 for more opportunities. He was the first in his family to attain a bachelor’s degree, graduating from Norwich University, the Military College of Vermont, with honors before completing leadership coursework through the United States Marine Corps to become a certified logistics officer.

In February 2023, Pascoe began working part-time at a Jacksonville, North Carolina KFC after hearing news of the tuition-free college program. “It all stemmed from a friend whose mom is a general manager at the KFC near base,” Pascoe said. “I was interested in earning a master’s degree and she informed me that by working at KFC, I could earn my degree for free. She offered me a night position and I enrolled in courses almost immediately.”

Eight months later, Pascoe walked the stage to receive his diploma at WGU’s commencement ceremony in Las Vegas, Nevada on Friday, October 27 but his educational journey doesn’t stop there. Pascoe is starting another master’s in management and leadership and hopes to earn a doctorate next. “Growing up, we lived in poverty. When I got my undergraduate degree, that sparked a lot of interest in my siblings to earn a degree,” Pascoe said. “I want to show them and those in a similar position that we were, that our upbringings don’t define who we are and show them the heights of how far they can go.”

“We are immensely proud of the transformative impact our tuition-free college program is having on the lives of KFC restaurant employees. This program is not just about education; it’s about empowerment and opportunity,” said Emma Horn, Executive Director of the KFC Foundation. “Kevon embodies this so strongly and we can’t wait to see the further impact he makes in the world.”

Providing tuition-free college is just one way the KFC Foundation supports, empowers and serves joy to KFC restaurant employees and their communities. The KFC Foundation’s other charitable programs help restaurant employees earn their GED, get up to $20,000 in scholarships to attend the two- or four-year college, trade school or graduate school of their choice, develop personal and professional skills, receive support during a crisis, build an emergency savings fund and give back to non-profits in their community.

Western Governors University is an accredited online university dedicated to making higher education accessible for as many people as possible. It is the leading academic institution where students learn and advance through competency-based education, giving them control over the pace of how and when they learn and may save them time progressing through the degree program.

KFC restaurant employees interested in the WGU program can go to Kfcfoundation.org/wgu to learn more, and those interested in working at a KFC restaurant can visit kfc.com/careers for more information about available job opportunities in their area.

About the KFC Foundation

The KFC Foundation, an independent 501c3 organization, has provided over $31 million to support, empower and serve joy to more than 9,300 students, KFC restaurant employees and non-profits. The KFC Foundation’s charitable programs include GED achievement, college scholarships, tuition coverage, community giving, savings matching and financial hardship assistance, all made possible by Round Up donations, purchases of KFC’s Secret Recipe Fries and other donations. For more information, visit kfcfoundation.org.

About Western Governors University

Established in 1997 by 19 U.S. governors with a mission to expand access to high-quality, affordable higher education, online, nonprofit WGU now serves more than 135,000 students nationwide and has more than 300,000 graduates in all 50 states. Driving innovation as the nation’s leading competency-based university, WGU has been recognized by the White House, state leaders, employers, and students as a model that works in postsecondary education. In just 25 years, the university has become a leading influence in changing the lives of individuals and families, and preparing the workforce needed in today’s rapidly evolving economy. WGU is accredited by the Northwest Commission on Colleges and Universities, has been named one of Fast Company’s Most Innovative Companies, and has been featured on NPR, NBC Nightly News, CNN, and in The New York Times. Learn more at wgu.edu.

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*To be eligible for the KFC Foundation’s programs, one must be employed at a KFC restaurant participating in the KFC Foundation’s Annual Franchise Donation Program and in good standing. Must maintain employment while taking advantage of these programs. Some restrictions may apply. See KFCFoundation.org for details.

References to “KFC” refer to corporate and independently owned KFC restaurants. KFC Corporation has no involvement in hiring decisions, orientation, staffing or the setting of wage rates and benefits for employees of independently owned and operated franchised locations. Benefits vary by location.

LIMA, Peru, November 7, 2023 /3BL/ – DP World, a global provider of end-to-end supply chain solutions, has taken a significant step towards its goal of achieving 100% carbon neutrality by 2030 through a new partnership with a Peruvian energy provider, Enel Peru. Through this alliance, DP World will receive its first international I-REC Standard certificate verifying that starting in 2023, the company will be able to use 100% renewable energy to power its operations.

An internationally recognized standardized renewable energy certificate, the I-REC Standard certificate is issued by The Green Certificate Company to verify the use of 100% renewable energy sources. It is accepted by the Greenhouse Gas Protocol (GHG Protocol), the most widely used carbon footprint accounting standard by major companies worldwide.

The certificate validates that in 2023, DP World used entirely hydroelectric energy sourced from Enel Peru’s Matucana hydroelectric plant, a run-of-river power station located approximately 40 miles east of the city of Lima. The recognition – which DP World will receive in 2024 – underscores the company’s continued dedication to reducing its carbon footprint and advancing sustainable energy solutions as it works to decarbonize its global operations.

This is not the first time DP World has been recognized by a certifying agency for its operations in Perú. In 2022, the company was awarded the Green Certificate from SGS Peru, recognizing the utilization of 21,309 megawatt-hours (MWh) of renewable electrical energy in its Callao operations.

“DP World Callao has become the first port to use 100% renewable electrical energy for all its operations. With this energy, we power mobile equipment such as dock and yard cranes, vans, and soon we will power electric trucks at the terminal. Furthermore, this practice is not limited to the port but also implemented in other areas of our logistics business. These initiatives align with our ambitious plan for carbon neutrality by 2030, which includes other strategies such as operational efficiency and digitalization, among others,” said Nicolás Gauthier, CEO of DP World Peru.

Marco Fragale, Country Manager of Enel Peru, emphasized the company’s role in driving carbon neutrality throughout Perú. “Every day, we promote alliances like this one, in order to advance the energy transition in Perú and engage various business sectors in this endeavour. With DP World and several other companies, we facilitate and operate the use of energy from 100% renewable sources, making it possible for more projects in the private and public sectors to contribute to sustainability and to society at large,” he said.

In 2023, Enel Peru issued five I-REC certificates and 35 Green Certificates, with eight more in progress. These efforts reflect the company’s ongoing commitment to decarbonize its energy mix, in alignment with the United Nations’ Sustainable Development Goal 13, Climate Action.

DP World’s partnership with Enel Peru represents a significant stride towards a sustainable future and demonstrates its dedication to reducing its environmental impact while supporting global efforts to combat climate change.

– END –

DP WORLD AMERICAS MEDIA CONTACT:

Melina Vissat, Head of Communications, North America 
M: (+1) 704-605-6159 
E: melina.vissat@dpworld.com

ABOUT DP WORLD:

Trade is the lifeblood of the global economy, creating opportunities and improving the quality of life for people around the world. DP World exists to make the world’s trade flow better, changing what’s possible for the customers and communities we serve globally.

With a dedicated, diverse and professional team of more than 103,000 employees spanning 75 countries on six continents, DP World is pushing trade further and faster towards a seamless supply chain that’s fit for the future.

We’re rapidly transforming and integrating our businesses — Ports and Terminals, Marine Services, Logistics and Technology – and uniting our global infrastructure with local expertise to create stronger, more efficient end-to-end supply chain solutions that can change the way the world trades.

What’s more, we’re reshaping the future by investing in innovation. From intelligent delivery systems to automated warehouse stacking, we’re at the cutting edge of disruptive technology, pushing the sector towards better ways to trade, minimising disruptions from the factory floor to the customer’s door.

WE MAKE TRADE FLOW TO CHANGE WHAT’S POSSIBLE FOR EVERYONE.

Follow DP World on Twitter and LinkedIn.

David Hutchins, FIA| Portfolio Manager—Multi-Asset Solutions

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

A multi-asset approach to sustainable investing brings a broad and more balanced palette to paint with. 

Investors turn to sustainable strategies for attractive return potential and opportunities to align with environmental or social themes. For many, it means taking advantage of a broad range of sustainable investment types, from equities and fixed income to non-traditional alternatives, such as real estate and infrastructure.

Balance Can Help Make Sustainable Investing… Sustainable 

We think the broader sustainable investment universe provides another potential benefit when effectively and consistently applied: balance. 

When unconstrained, a multi-asset approach can leverage a wide mix of sustainable investment building blocks to pursue returns and dial up or down risk levels over time—both of which are important to investors who prefer fewer bumps in their ride.

The Journey Should Map to Global Sustainability Themes 

The ideal starting point for prospective sustainable investments are companies whose operations are tied to some or all of the 17 United Nations Sustainable Development Goals (UN SDGs). So far, 193 nations have pledged to hit UN SDG targets, which address economic prosperity, the environment and social inclusion, and it’ll take about US$90 trillion in investments globally to do so by 2030. 

These are powerful tailwinds for companies aligned with UN SDGs, and they represent a roadmap of thematic opportunities across stocks, bonds and other investments for years to come. We consider health, climate and empowerment among the most logical and compelling themes, given the breadth of each’s supportive sub-themes (Display).

More Levers, Less Volatility

Stocks have offered the most attractive long-term return potential compared to other assets, but they’re prone to short-term volatility and losses. Certainly, equities of all stripes (style, cap size, region, etc.) remain a key pillar in a sustainable portfolio, especially as more companies enter the ESG space and global opportunities expand. 

US-based Hexcel, for instance, manufactures lightweight carbon fiber that displaces steel and aluminum in airplanes for better fuel efficiency—a boon to climate goals. Similarly, Adobe profitably empowers companies through its digital enterprise resources, leaving a very small carbon footprint in the process. 

Similar alignments to global sustainability themes are also found in bonds, expanding the levers that multi-asset portfolios can use to make dynamic adjustments as markets shift. For example, the popularity of ESG-labeled bonds is exploding, with green bond issuance alone topping nearly US$4 trillion at year-end 2022, according to the World Bank.

Not All ESG-Labeled Bonds Are Alike

It’s important to understand how each ESG-labeled bond can uniquely contribute to a sustainable portfolio. They fall into two broad categories: use of proceeds, and sustainability linked. 

Use-of-proceeds bonds finance specific green or social projects. Ørsted, for example, is a Danish energy provider targeting using 99% renewable sources by 2025. Proceeds from its green bonds will fund offshore wind farms and other renewables, conversion of gas and coal plants to sustainable biomass, and clean energy storage. Meanwhile, Scotland-based commercial bank NatWest Group’s social bond proceeds are aimed squarely at funding women-led enterprises. 

Rather than financing individual projects, sustainability-linked bonds (SLBs) require that issuers meet specified sustainable key performance indicators within a specified timeframe—at the company level. For incentive, SLB frameworks can stipulate higher coupons if targets aren’t reached. Greece-based PPC, for instance, missed its 2022 year-end decarbonization target, and its coupon was stepped up 0.25% in March 2023 as a result. 

Some ESG-labeled bonds may not have specific green or social targets for proceeds, but the issuer has set certain sustainability targets that it seeks to achieve. For instance, US Acute Care Solutions is a physician-owned provider of medicine, hospitals and observation services that strongly aligns with UN SDG health themes. The company is very employee-centric based on a “democratic ownership” model. Its in-network business model offers lower-than-average pricing compared to peers, and it takes measurable steps to ensure patient access to quality care while managing costs and fostering a diverse and inclusive workplace.

Talking Trash… and Trains and Tap Water

The diversification benefits of ESG-labeled bonds can go even further, considering the scope of issuers is much wider than companies, from non-profit agencies and provinces to sovereign nations. 

Much like security selection, engagement* is a big part of the screening and integration process. Engagement entails meeting with issuers, reviewing their sustainability goals and even encouraging them to set more ambitious targets to attract investors. 

AB regularly participates in early framing of an upcoming bond’s purpose and reach. For example, Canada’s finance department invited us to present our thoughts on a proposed seven-year ESG-labeled environmental bond in 2022, which at C$5 billion ranked it among the country’s largest and most sweeping. Bond proceeds were intended to finance nationwide biodiversity programs, cleaner transportation projects, wastewater management improvements, more renewable energy and other initiatives. AB has continued to engage with the Canadian government on topics such as green bond impact reports and future ESG-labeled bonds and frameworks.

Healthy Stretching: Alternative Assets Play a Role, Too 

The traditional diversification benefits of stocks and bonds can’t always be relied on, as we saw in 2022. For this and other reasons, we think sustainable multi-asset investors should consider expanding, albeit selectively, into non-traditional assets, which are a growing part of the ESG world. Such alternatives today include digital infrastructure, such as power-saving smart buildings and renewable energy generation. 

Regional exposure also matters, as does a variety of style (low volatility versus growth stocks) and low-correlating factors such as hedge fund premia and options. Integrating measured, complementary exposure among these outliers may especially help offset biases that can slowly creep up. This helps manage short-term volatility while enhancing diversification in issuers that contribute to positive environmental and social outcomes. 

Sustainable multi-asset portfolio construction strives to combine the best opportunities across asset classes and the ESG universe. We believe the efficient integration of these ideas, including tactical maneuvers when conditions change, can help manage downside risk and provide a more balanced sustainable investing experience. 

*AB engages companies where it believes the engagement is in the best interest of its clients.

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.

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