Tag: 3BL

Matt Sprague and Charlie Brunel-Lister, climate strategy and sustainable finance experts at South Pole, explain how financial institutions can understand and tackle their scope 3 emissions to accelerate their climate journey.

Our research has highlighted the scale of the financed emissions challenge and the need for financial institutions to use their investment influence to drive decarbonisation efforts.

Climate goals are becoming more ambitious. And this means a tighter focus on companies’ scope 3 emissions as this is often where businesses can achieve the biggest decarbonisation impacts.

For financial institutions such as banks, insurance companies and investment managers, scope 3 emissions from supply chains and lending/investment portfolios are often more complex than for other industries. They mostly derive from the investments they hold and the lending/underwriting they provide to other companies, known as ‘financed emissions’. Financed emissions are the share of operational emissions from the companies under an institution’s investment/lending portfolio, with methodologies such as PCAF or JIM providing a system for measuring these emissions.

While the process is complex, the pay-offs are considerable. CDP found that these financed emissions are on average approximately 700 times higher than the organisation’s operational emissions. For example, the indicative financed emissions from the UK financial sector in 2019 were found to be 1.8 times higher than the UK’s own greenhouse gas emissions (excluding aviation and shipping). Financial organisations thus have a major role to play in the decarbonisation of the global economy, yet it is estimated that since the Paris Agreement in 2015, the 60 largest banks have instead invested $5.5 trillion USD in fossil fuels. Clearly much more needs to be done to pivot towards more sustainable investment and lending practices.

Change is already underway within the fossil fuel industry, as developments in the Netherlands, United States and Australia indicate. Support for decarbonisation has also been spurred on by Climate Action 100+, a group of over 570 investors engaging with large organisations to take action on climate change and drive emission reductions, with further pressure on investment groups anticipated as more focus is placed on their emissions and climate impacts.

Meanwhile, some financial institutions have already committed to reducing their investment in coal and fossil fuels, such as BNP Paribas (coal divestment in EU and OECD by 2030 and globally by 2040), ING (zero coal by 2025) and Commonwealth Bank (no direct finance for all new and expanded oil and gas extraction projects, as well as some critical enabling infrastructure by 2025). Even JP Morgan Chase, the world’s largest investor in fossil fuels, has taken steps to reduce investment in Arctic oil drilling and coal. Other banks and lending institutions have not set clear targets, while those that have done so typically limit their statements to thermal coal lending. The Powering Past Coal Alliance is a group of 167 national and sub-national governments, businesses, and organisations looking to accelerate the transition to clean energy away from coal. Financial institutions looking to get started on their sustainable finance journey should begin with decarbonising their investment portfolio, which starts with five simple steps.

Understanding emission sources in your portfolio

For some organisations, scope 3 emissions may be easy to calculate, understand and reduce, such as those deriving from business flights and waste. For financial institutions, however, these emissions are often more complex and material, and form a major part of the revenue stream. The Partnership for Carbon Accounting Financials (PCAF) standard has developed a methodology to measure these emissions across various asset classes: listed equity and corporate bonds, business loans and unlisted equity, project finance, commercial real estate, home mortgages, motor vehicles loans and sovereign bonds. For all of the companies and projects in your investment or lending portfolio, you are carrying their operational emissions within your overall amount of financed emissions. Currently, a financial organisation should consider the scope 1 , 2, and significant scope 3 emissions from its portfolio; however, this may change to include all scope 3 emissions in the future.

Those organisations that have not considered reducing these emission sources could be misunderstanding the double materiality risks they carry: the risks to their business, like stranded assets or reputational risks, and their contribution to making the Earth uninhabitable.

A simple example is that of a financial investment in a mining company. The operational emissions (scope 1 and scope 2 emissions directly attributed to the mining operations) typically include diesel, electricity and fugitive gases. Traditionally, financed emissions exclude scope 3 emissions from activities such as transportation and use of the coal, either in a power station (known as thermal coal) to generate electricity, or in industrial processes such as steel making (known as coking or metallurgical coal).

In this example, if the financial organisation holds a 10% stake (either debt or equity) in the mining company, their financed emissions would be 1.63 MtCO2e = 10% x (10.5 + 5.8 MtCO2e).

However, if the financial organisation were to include the significant scope 3 emissions, then the financed emissions would increase to 60.1 MtCO2e = 10% x (10.5 + 5.8 + 584.9 MtCO2e). This is a nearly 37-fold increase!

Steps to tackle financed emissions

Understanding the size of this footprint is the first step, but setting a decarbonisation target is a challenge in itself. Below we outline five steps to start decarbonising your investment portfolio.

1. Calculate your impact

To understand the emissions from investments and lending, organisations need to know their portfolio of investee companies and apply suitable emission factors to each company. Their owned emissions are then prorated based on their equity or debt investment share. This will show the emissions from the investment at a point in time and highlight the high-emitting investments. By following the PCAF methodology, these emissions can be understood with reasonable confidence across multiple asset classes. The portfolio emissions data used (i.e. reported emissions vs. estimated emission factors) will alter the financial institutions’ data quality score and its ability to track improvements.

2. Set a target

The Science Based Targets initiative ( SBTi) has developed guidelines on setting science-based targets (SBTs) for the financial sector that require the inclusion of financed emissions. To date, around 70 financial companies have validated near-term SBTs, with a further 160+ having committed to setting near-term targets. South Pole can help you navigate the existing framework as well as the new net zero guidance (FINZ) which will replace it in Q4 2023.

3. Take a strategic approach to decarbonising investments

Financial institutions have options when trying to reduce their financed emissions. For example, they can engage with their portfolio companies to support emission reduction targets in line with climate science. They can also divest from high-emitting industries such as thermal coal production. When developing an investment decarbonisation approach aligned with +1.5°C of warming, financial institutions should also consider both a “just transition” approach, where no-one is left behind in the decarbonised economy, and a short-term return on investment while reducing warming to below 1.5°C.

A strong decarbonisation strategy may see a blended approach between divesting assets and then working with other portfolio companies to decarbonise, depending on the ownership and control of the financial institution on the one hand and the willingness and ability to transition, on the portfolio company side.

Aligning an investment strategy with these new technologies, opportunities and risks can reduce the impacts of climate change, and also reduce a lender’s exposure to the increased risks associated with increased fire risk, flooding and drought.

4. Finance climate action

Financing climate action can take many forms, such as green bonds or sustainability-linked loans. Investors and lenders should look to provide finance to the companies and projects which are moving towards low-carbon or are already meeting these objectives. Supporting the growth of “green” companies which are credibly “transitioning” by providing additional finance – including companies that may require flexible finance arrangements to scale their impacts – can increase investor impacts. Leveraging environmental, social, and (corporate) governance (ESG) policies and working with existing fund managers can support portfolio companies with identifying suitable opportunities.

5. Lead and communicate

Financial organisations should communicate their climate action to the marketplace and stakeholders through established frameworks such as the TCFD. This critical step – disclosing the climate impact of your investments and lending – encourages other organisations to take action. It is only with this level of rigour and transparency that organisations can demonstrate authenticity and leadership in their climate strategies.

TCFD is becoming a standardised requirement for many organisations, with several governments looking to make reporting mandatory, such as the case in Switzerland by 2024. Establishing strong reporting principles now will put financial organisations in good stead to meet future reporting obligations.

Financial institutions have a major role to play in decarbonising the economy toward net zero over the coming three decades. However, greater action is required to fully realise this. Understanding your financed emissions and taking strategic investment decisions to decarbonise is key to supporting portfolio companies in their transition.

South Pole provides support to financial institutions of all shapes and sizes on their sustainable finance journey and on measuring and decarbonising their portfolios.

International Olympic Committee news

The International Olympic Committee (IOC) has announced the winners of the inaugural Climate Action Awards, recognising the athletes, International Federations (IFs) and National Olympic Committees (NOCs) who are taking tangible steps to tackle the climate crisis.

Athletes Ben Blankenship (athletics, USA), Marcus Mepstead (fencing, Great Britain) and Paloma Schmidt (sailing, Peru) have all been honoured, alongside World Rugby, World Sailing, the Colombian Olympic Committee and the Spanish Olympic Committee. They were chosen from among more than 70 applications received from across the Olympic Movement for three award categories: sustainable travel, innovation, and athlete advocacy.

The awards, which are supported by Worldwide Olympic and Paralympic Partners Airbnb, Deloitte and P&G, aim to recognise effective efforts from across the Olympic Movement to reduce sport’s impact on climate, while inspiring others to follow suit.

“We celebrate the remarkable efforts of these athletes, NOCs and IFs through the IOC Climate Action Awards, recognising the action they are taking to address the climate crisis,” said IOC Director for Sustainability, Marie Sallois. “Through their powerful projects and inspiring advocacy, they are proving that sport has the power to drive positive change and contribute to a more sustainable future.”

The Climate Action x Sustainable Travel Award, supported by Airbnb, was awarded to British fencer Marcus Mepstead in the athlete category, World Sailing in the IF category, and the Spanish Olympic Committee in the NOC category. The award recognises effective action and advocacy to travel more sustainably within the sports calendar.

Mepstead was recognised for implementing a yearly travel plan that minimises emissions, while World Sailing was recognised for prioritising reducing organisational travel and new policies for promoting the use of public transport by staff, in an effort to reduce emissions associated with travel and transport.

The Spanish Olympic Committee, meanwhile, has been acknowledged for prioritising sustainable mobility within its strategy, using electric and hybrid vehicles from Worldwide Olympic Partner Toyota, as well as public transport for domestic travel.

“We’re excited to recognise the efforts of Marcus, World Sailing and the Spanish Olympic Committee through the Climate Action x Sustainable Travel Award,” said Ameet Konkar, Airbnb Head of Sustainability. “At Airbnb, we strongly believe in making travel more sustainable. This award showcases the commitment the Olympic community is making to reduce its impact and promote more conscious travel practices.”

The Climate Action x Innovation Award, supported by Deloitte, was awarded to Peruvian sailor Paloma Schmidt in the athlete category, World Rugby in the IF category, and the Colombian Olympic Committee in the NOC category. The award recognises the creative and innovative solutions demonstrated by athletes, IFs and NOCs to help drive climate action.

Schmidt received the award following her efforts as part of the organising committee of the International Laser Class Association (ILCA) European Championships in Andora, Italy, which saw her introduce a range of measures to reduce waste at the event.

World Rugby, meanwhile, has been honoured for implementing “The Bag that Builds”. Launched in partnership with the South African Rugby Union and the Centre for Regenerative Design & Collaboration (CRDC), this innovative initiative involved collecting waste generated by fans, athletes and operations staff during the Rugby World Cup Sevens 2022 for conversion into an eco-aggregate used for the construction of social housing in the event’s host nation, South Africa.

The Colombian Olympic Committee was recognised for launching a pilot initiative to manage, reduce and advocate on carbon emissions at the National Sea and Beach Games held in Tolú (Coveñas) in 2021, which is now being rolled out at other sporting events in the country.

“Innovation helps to drive climate action,” said Jennifer Steinmann, Deloitte Global Sustainability and Climate practice leader. “We understand what we need to do to help avoid the most serious consequences of the climate crisis, and these initiatives help society implement long-term behaviour change at scale. Through the Climate Action x Innovation Award, Deloitte is proud to recognise and support Paloma Schmidt, World Rugby and the Colombian Olympic Committee’s efforts within the Olympic Movement that help to reduce emissions and implement circular economy principles – paving the way for more sustainable sport.”

The Climate Action x Athlete Advocacy Award, supported by P&G, aims to reward the efforts of athletes who actively engage people and communities in the fight against climate change. It was awarded to US middle-distance athlete Ben Blankenship for his work promoting sustainability through the Endless Mileage Project, which plants trees for every American miler who breaks 4 minutes (men) and 4:30 min (women) in the event and redistributes used sports clothing and equipment to local schools.

“As a long-standing partner of the Olympic Games, we have seen the power athletes have to inspire others to take action. We are thrilled to support Ben Blankenship as he uses his platform to foster a culture of sustainability by recognising him with the Climate Action x Athlete Advocacy Award,” said P&G’s Chief Sustainability Officer Virginie Helias.

Launched in November 2022, the IOC Climate Action Awards aim to highlight how sport can play an important role in tackling the climate crisis.

The IOC continues to advance its own commitment to help address climate change by reducing its direct and indirect emissions by 30 per cent by 2024 and 50 per cent by 2030 in line with the Paris Agreement. In addition, the IOC is creating the Olympic Forest, which is part of the Great Green Wall initiative to restore degraded landscapes across Africa’s Sahel region.

The IOC has also increased its requirements for the Olympic Games to help address climate change. From 2030 onwards, Games organisers will be obliged to minimise direct and indirect Games-related carbon emissions while striving to remove more carbon from the atmosphere than what the Games project emits, and using their influence to encourage stakeholders to take climate action.

The International Olympic Committee is a not-for-profit, civil, non-governmental, international organisation made up of volunteers which is committed to building a better world through sport. It redistributes more than 90 per cent of its income to the wider sporting movement, which means that every day the equivalent of USD 4.2 million goes to help athletes and sports organisations at all levels around the world.

For more information, please contact the IOC Media Relations Team: 
Tel: +41 21 621 6000, email: pressoffice@olympic.org, or visit our web site at www.ioc.org.

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SWORDS, Ireland, September 29, 2023 /3BL/ – Trane Technologies (NYSE: TT), a global climate innovator, today rang the Opening Bell on the New York Stock Exchange (NYSE) to celebrate its third year as a focused climate company with a purpose to boldly challenge what’s possible for a sustainable world.

“Three years ago, we transformed one of the oldest companies listed on the NYSE and launched Trane Technologies – a focused climate innovator with bold sustainability commitments and a long history of customer-focused innovation,” said Dave Regnery, chair and CEO of Trane Technologies. “Since then, we have continued to accelerate innovation that disrupts the industry, changing the way the world heats and cools buildings, industry and transport and leading us to a more sustainable future.”

This follows Trane Technologies’ participation at Climate Week NYC, where company leaders helped lead the call for the acceleration of credible net-zero carbon transition plans. As part of the Concordia Summit, Regnery took the stage to discuss the urgent need for ambitious, science-based climate commitments, meaningful action and transparent reporting.

Trane Technologies also hosted member CEOs from the Sustainable Markets Initiative at 55 Water Street, a long-time Trane® customer, to demonstrate how its high-efficiency chillers, thermal energy storage and building automation are accelerating the decarbonization of the largest office building by floor area in New York City. The company also participated in the United Nations General Assembly Climate Ambition Summit’s Credibility Matters session, where world leaders gathered to stress the urgency for climate action initiatives aligned to credible transition plans. 

Through bold, industry-leading action and innovation, Trane Technologies is advancing its 2030 Sustainability Commitments, including the Gigaton Challenge – a pledge to reduce customer greenhouse gas emissions by 1 billion metric tons (or, one gigaton) – and its 2050 Net-Zero carbon targets. The company’s emissions reductions targets have been externally validated by the Science Based Targets Initiative (SBTi).

# # #

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

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

GRI was pleased to host its own event, Aligning Private Sector Disclosures with the Sustainable Development Agenda- Launch of Carrots & Sticks Report, during the UN General Assembly and Climate Week NYC. The event marked the official launch of the 2023 edition of Carrots & Sticks report and database, a free-to-use online database and document repository which comprises 2,463 policies in 132 countries, 76 international and regional organizations, in 38 languages, which range from 1897 to the present day. GRI was delighted by the high level of interest in the new resources and glad to welcome over 100 participants at the launch event.

GRI’s involvement during Climate Week was not limited to the launch event but extended throughout the week. GRI had the privilege of being present at several key moments, including the celebration of collaborators’ efforts such as the TNFD launch of its final recommendations on nature related issues at the New York Stock Exchange (NYSE). As a formal Knowledge Partner to the TNFD, GRI actively engaged with TNFD in the development of their recommendations and GRI celebrates this impactful accomplishment by the TNFD. The TNFD recommendations will be incorporated into aspects of the new revised GRI Biodiversity Standard that will be published within the next two quarters.

GRI North America’s Head of Engagement and Public Affairs, Matthew Rusk, spoke at Nasdaq Annual NY Climate Week conference 2023. The event’s session on Driving your Sustainability Program to Success with the Right Tools highlighted the need for cross-functional team involvement in the sustainability reporting process, the importance of internal controls and processes to gather credible, auditable information, and the helpful role software tools and solutions play in the reporting process. GRI continues to work with certified Software and Tools Partners, like Nasdaq, to embed the GRI Standards into tools that assist in impact materiality assessment, enable increased transparency and accountability, improve sustainability and ESG-related data management, meet regulatory and reporting obligations more easily, and build trust with stakeholders.

Multiple representatives from GRI North America and members of the GRI’s International Policy Team, remained present across a diverse array of events throughout the week, including the Nest Climate Campus, SDG Summit USA, Axios’The Climate for Corporate Impact, Climate Week NYC – We Can. We Will, UNGC Leaders Summit, 2023 Forbes Sustainability Leaders Summit, FP Food Forum @UNGA78, Sustainable Investment Forum, and World Biodiversity Summit. These events presented unique opportunities for GRI to engage with stakeholders of different backgrounds and constituencies, all dedicated to elevating organizations’ transparency, accountability, and actions to create a more sustainable and just society. The GRI North America team was pleased to incorporate a special focus on participating in a plethora of convenings addressing sustainability challenges within the food system, where GRI 13 Standard can be a powerful tool for identifying and reporting on agriculture, aquaculture, and fishing activities’ most important impacts on the economy, society, and environment.

With a growing presence in North America, GRI will continue to actively engage with stakeholders and partners in the region, not only during this important week that brings stakeholders from around the world together, but every week.

NEW YORK, September 28, 2023 /3BL/ – Paramount Global (NASDAQ: PARA, PARAA) today released its fourth annual Environmental, Social, and Governance (ESG) Report highlighting its progress on its goals and accomplishments within three key focus areas: On-Screen Content & Social Impact; Workforce & Culture; and Sustainable Production & Operations. 

“As the media industry continues to undergo rapid change, Paramount remains steadfast in our commitment to engage, represent, and champion issues that align with our values and resonate with our audiences,” said Crystal Barnes, Executive Vice President, Social Responsibility & ESG at Paramount. “While navigating complex global challenges, our obligation as an industry leader is to create compelling content that can help shape a more sustainable and inclusive world.” 

In addition to consistent year-over-year workforce and environmental impact data, this year’s report provides a more detailed overview of how the company engages with its internal and external stakeholders to better understand and address the ESG challenges and opportunities of greatest concern to these groups. 

Other notable aspects of the report include: 

On-Screen Content & Social Impact: As a global leader in the media industry, Paramount plays a role in influencing culture and conversations, with real-world impacts. Through its Content for Change initiative, Paramount uses the power of storytelling to transform how we see ourselves and one another, and to counteract bias, stereotypes, and hate in society. Since its initial launch in 2020, Content for Change has expanded to include more than 30 programs and initiatives, bringing the issues and stories that matter to individual communities to the forefront for audiences. Workforce & Culture: To be the best creators and storytellers, Paramount must reflect, celebrate, and elevate the diversity of the communities in which it works and the audiences they serve. The company remains dedicated to building a culture of meritocracy and inclusivity, where all employees feel welcomed and have the opportunities and resources to thrive. Paramount is proud to have a Board that is representative of diverse communities, with seven directors self-identifying as women, two as LGBTQ+, two as African American, and one as Hispanic or Latinx. Sustainable Production & Operations: Paramount continues to work to limit the environmental and social impacts associated with its business operations. Notably, in 2022, the company introduced Peak Sustainability, a comprehensive climate action strategy for Paramount UK, comprised of seven key climate action pledges that aim to address environmental impacts across ESG priorities. Peak Sustainability is part one of a longer-term vision for Paramount, serving as a catalyst for continued progress in developing and achieving company-wide, internal climate-related benchmarks and scaling Paramount’s climate strategy globally. 

The ESG report is guided by external ESG frameworks with reference to ESG and sustainability best practices, including the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD). It also outlines the company’s alignment with relevant United Nations Sustainable Development Goals (SDGs), including Gender Equality, Decent Work and Economic Growth, and Climate Action. 

To learn more about Paramount’s ESG efforts and to view the full 2022-2023 report, please visit https://www.paramount.com/sustainability. 

PARA-IR 

About Paramount 
Paramount Global (NASDAQ: PARA, PARAA) is a leading global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, Paramount’s portfolio includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. Paramount holds one of the industry’s most extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, the company provides powerful capabilities in production, distribution, and advertising solutions. 

For more information about Paramount, please visit www.paramount.com and follow @ParamountCo on social platforms. 

Press: 
Allison McLarty 
Senior Vice President, Corporate and Financial Communications 
(630) 247-2332 
allison.mclarty@paramount.com 

Jessica Thurston 
Vice President, Environmental, Social, and Governance (ESG) and Sustainability 
(646) 532-9466 
jessica.thurston@paramount.com

Marathon Petroleum Corporation’s Robinson, Illinois, refinery is using solar power to build on its sustainability performance already recognized by the U.S. Environmental Protection Agency.The refinery is part of a project to install solar panels on adjacent refinery-owned land that are expected to help power the facility by the end of 2024.The 30-acre solar farm will have the potential each year to avoid consumption of enough electricity from the electric grid to equal the annual energy use of roughly 1,000 homes.

Sunny days are taking on operational significance at Marathon Petroleum Corporation’s (MPC) Robinson, Illinois, refinery where solar panels are soon expected to begin supplying electricity that helps power the site. The refinery is working with solar energy developer Sol Systems to install panels on 30-acres of MPC-owned land that’s adjacent to the refinery.

“During periods of peak sunlight, the panels will deliver five megawatts of electricity,” Robinson Engineering Supervisor Corie Biggs said. “Over the course of a year, this could avoid consumption of as much as 11,200 megawatt-hours of electricity from the electric grid, which is equal to the annual energy use of roughly 1,000 homes.”

Construction is expected to start in early 2024, and commercial operation is anticipated by the end of next year. As project developer, Sol Systems will coordinate the construction and operation of the solar farm, which will provide power to the refinery at a fixed rate for 20 years. After this period, Robinson will have the option of taking over ownership of the system.

This project builds upon sustainability initiatives in recent years that have earned the refinery recognition for its energy efficiency through the U.S. Environmental Protection Agency’s ENERGY STAR® program. At the 2022 ENERGY STAR Industrial Partner Meeting, a Robinson steam turbine optimization project was named one of the 12 Top Projects in the U.S. industrial sector. Also last year, Robinson earned its fifth consecutive ENERGY STAR certification with site efficiency in the top 25% of industry peers.

“These achievements reflect the hard work of our teams in continually scrutinizing our refining processes to find ways of further reducing energy use,” said Robinson Refinery General Manager Amy Macak. “The solar farm elevates these efforts as a renewable energy source, expanding our capabilities to maintain environmentally responsible operations going forward.”

The Mastercard Center for Inclusive Growth

How can we use new technology and collective action to significantly improve the lives of all people and the health of our entire planet?

That was the central question at the recent second annual Impact Data Summit, hosted by the Mastercard Center for Inclusive Growth with the Rockefeller Foundation and data.org, for social impact leaders.

Coinciding with the United Nations General Assembly meeting and Climate Week NYC, conversations at the summit looked at the current realities of data, artificial intelligence and social impact, their impact on the U.N.’s sustainable development goals, the role of cross-sector collaboration to drive that impact, what the future holds for transformative technology and how to make sure that future is sustainable, equitable and accessible.

“As leaders in data, we need to move fast and now, not tomorrow,” said Shamina Singh, the president and founder of the Mastercard Center for Inclusive Growth. “Don’t leave here without a new partnership, without a new plan, without a new program … AI, I hope you will think, means actionable impact.”

Here are the key takeaways that will define the future of data and AI.

01 
AI can help the world meet its sustainability goals, with humans’ help

Data and AI have the potential to help achieve the 17 sustainable development goals laid out by the U.N. in 2015 to jump-start improvements including climate action, gender equality and inclusive economic growth. “Digital technologies can actually help accelerate 70% of the SDG targets, which is quite incredible,” said Doreen Bogdan-Martin, secretary-general of International Telecommunication Union, the U.N. specialized agency for information and communication technologies. “Only 15% of the targets are on track.”

Her faith is grounded in the game-changing nature of AI. AI can interpret vast amounts of data that no human could ever process. And it can distill that data into something immediately actionable — a necessity as we race against the clock to solve these human crises.

At the same time, human beings must constantly scrutinize AI to understand what it’s saying and how it can help generate outcomes that help society and leave no one behind. The wrong outputs and outcomes, said JoAnn Stonier, the Mastercard Fellow specializing in responsible AI and data, “will only get amplified very quickly in this environment.” But, she added, “as long as we have the accuracy, we have the right data, and we’re doing all of our homework, I do think we’re going to start seeing some amazing solutions.”

02 
Innovating with guardrails

The internet was not based on a single piece of technology. Instead, its enduring power emerged when Bob Kahn and Vint Cerf — known as the “fathers of the Internet” — invented the protocols and architecture that allowed computers to form networks with one another. “As long as the internet adhered to the basic architecture, it could continue to evolve,” Kahn said. That approach allowed the internet to persist and expand far beyond its first small network of computers.

For AI to make an impact, it will need a similar set of protocols and architecture to create interoperability on an international level.

Regulation will have a role to play, too. AI should be serving the communities in which it exists, and these needs vary widely depending on location, so regulation cannot be one-size-fits-all; it requires context to be effective. “Technology is extremely difficult to regulate for a number of reasons. It evolves very quickly. What you don’t want is a static piece of regulation that is built based solely on the way the technology works today,” said Dorothy Chou, head of policy and public engagement at Google DeepMind. “Historically, what we’ve seen is that good regulation actually creates public trust.”

03 
Together, we go far

When the COVID-19 pandemic hit, Kenya’s government wanted to make informed decisions for the health and safety of its citizens, explained Shikoh Gitau, founder and CEO of Qhala, a Nairobi-based consultancy that specializes in health informatics and the technology of social impact. But every health center had its own small and private data silo. So policymakers were forced to follow frameworks created on other continents, which ultimately proved poorly suited to the needs of Kenya.

Information that’s fragmented by unnecessary barriers or delayed by bureaucracy loses its ability to make an impact. The way to change these limitations is through collaboration between the public and private sectors. As Holly Krambeck, director of development data partnership for the World Bank, said, “As much as I hate to admit it, international corporations can’t solve everything, so we need global partners of all different types.”

04 
Drawing in and opening up

As of now, 85% of all AI developers are men, according to Gabriela Ramos, assistant director-general for the social and human sciences at UNESCO. And, as several panelists noted, the majority of data fed into AI comes from North America. That means AI models are being trained with data about a world from a tiny sliver of the global population. In fact, there is almost no data representing the Global South at all — and if there is, it’s outdated and in incompatible formats.

These gaps in data and AI — as well as a lack of diversity among the data scientists — ultimately hurt everyone. For example, failing to represent women and people of color can produce inaccurate AI outcomes. Those oversights result in leaving millions of investment dollars on the table — money that could help drive resilience, economic growth and the physical wellbeing of entire communities. “You get out of data what you put into it,” Ramos said.

However, getting the most out of data and AI requires unraveling deep-seated, systemic issues. “We have to be mindful about not reproducing inequalities from the analog world into the digital,” said Lamia Kamal-Chaoui, the director of the OECD Centre for Entrepreneurship, SMEs, Regions and Cities. This means investing in data collection in underrepresented areas, improving accessibility to such data, drawing diverse voices into the development of AI and listening to the local communities where new technology will be placed to best serve their unique needs.

When it comes to developing digital technology, one of the most significant measurements is how it contributes to the improvement of human life. There may be a divide between better data and better decisions that will make a real difference in people’s lives, said Gina Lucarelli, team leader of the U.N. Development Programme’s Accelerator Labs. “The real gems are the moments where you bridge that gap and you actually see data that drives decision-making.”

Originally published by The Mastercard Center for Inclusive Growth

Check out more content from The Mastercard Center for Inclusive Growth

Energized by Edison

By Casey Wian ENERGIZED by Edison Writer

Ladies and gentlemen, start your electric engines, your offshore wind turbines, next-generation geothermal power plants and home battery storage systems. There’s no checkered flag at the end of this race; something much greater is at stake: the clean energy future of California and, ultimately, the planet. 

Edison International’s just-released analysis, “Countdown to 2045: Realizing California’s Pathway to Net Zero,” concludes that for the state to achieve its updated net-zero greenhouse gas emission goals in just over two decades, the electric grid must expand faster than ever before while homeowners and businesses must dramatically reduce their reliance on fossil fuels. 

“The speed and scale of electrification needed to decarbonize the economy and meet California’s ambitious net-zero goal is dramatic,” said Pedro J. Pizarro, president and CEO of Edison International. “While we have tools available today to achieve significant emissions reduction, “Countdown to 2045” calls for policies that encourage greater investment in and development of emerging technologies. We need to keep all options open to achieve the most feasible and affordable solutions to meet California’s climate targets.” 

VIDEO: Pedro Pizarro discusses the importance of “Countdown to 2045”

“We’re really focused on scaling up and increasing the speed of the transition. We have accounted for new policies and the latest climate science, and we’re seeing the need is bigger than ever while there is less and less time remaining,” said Stephen Collins, senior manager of Strategic Planning at Southern California Edison. 

Compared to SCE’s Pathway 2045 white paper published just four years ago, “Countdown to 2045” sets more aggressive electrification targets for the state. For example:

“Countdown to 2045” Electrification Targets:

90% of light- and medium-duty vehicles and more than 50% of heavy-duty vehicles are electric, compared to the approximately 70% and 33%, respectively, called for in Pathway 204595% of appliances in buildings are electric, compared to 70% previously projectedElectricity demand is projected to rise by more than 80% compared to todayThe grid must support three times more utility-scale clean energy from resources such as new solar, wind and energy storage projects

“We’re doing this work to help California meet its climate goals, yet the payoff for customers will be seen and felt in the health benefits of lower pollution, greater economic development and job creation opportunities and customer savings from lower overall energy expense,” Pizarro said. “As we expand the grid and add more clean energy resources, customers will enjoy a system that is more reliable and affordable even as they electrify their vehicles, add induction stovetops to their kitchens and install heat pumps to warm and cool their homes and businesses.”

A key factor in “Countdown to 2045’s” accelerated targets is California’s passage last year of Assembly bill 1279, which codified into law the goal of carbon neutrality by 2045 while increasing the pace of mandated emissions reductions. Also, the California Air Resources Board has adopted the Advanced Clean Cars II regulation, establishing that by 2035 all new light-duty passenger cars and trucks sold in the state must be zero-emission vehicles. The federal Inflation Reduction Act allocates nearly $400 billion in tax incentives, grants and loan guarantees for clean energy projects nationwide. 

“This is intended to shine a very clear light on the challenges ahead. It’s a very ambitious goal that we stand behind,” Collins said.

As “Countdown to 2045” states: “California has already proven itself a climate leader; the ambitious steps described here will set a strong example for others. Without these actions, the state will likely fall short of its goal. Furthermore, a similar transformation is needed worldwide to reduce global GHG emissions at a scale that will meaningfully slow climate change.” 

Click here to view Edison International’s “Countdown to 2045” news release.

For more on SCE’s clean energy efforts, visit energized.edison.com/cleanenergy.

By Doug Segrest

Dr. Jeffrey Nix first met Mike Slive the conventional way, as physician and patient.

Now Nix is ensuring that Slive’s vision remains intact as a member of the Mike Slive Foundation board of directors.

“There are very few men who wielded the power and influence Mike had and still remain the same person,” Nix said. “Sometimes, there’s a tradeoff, but there never was with Mike. He could come in and, with his presence, command a room. But he always remained approachable, and he was easy to become friends with.”

Slive, the longtime SEC Commissioner and one of the most powerful forces in college athletics during his tenure, passed away in 2018 from complications due to his lengthy battle with prostate cancer.

Five years later, his mission to fund research for prostate cancer and educate men on how best to fight the disease continues on with a new generation. And, once again, Regions Bank is helping play a role.

Throughout September, Regions is supporting The Mike Slive Foundation’s fight against prostate cancer – and helping save lives by funding innovative research. Through Sept. 30, $1 will be donated to the Mike Slive Foundation for every new qualifying consumer Regions Online or Mobile Banking, Bill Pay, Zelle® and External Transfer transaction.You can find more details on regions.com.

Nix, the Joe Chamblis endowed professor for prostate cancer reasarch and innovation, and the Director of Robotic Surgery at UAB, said the Mike Slive Foundation is unique because of its founder.

“The Foundation has been pretty remarkable,” Nix said. “Most cancer startups, in terms of research funding, take years before they become well-enough established to start the process of grant funding. Yet the Slive Foundation started grant funding within the first year, which is amazing.”

In addition, Slive’s connection throughout the sports world ensured another facet of his vision – education – would be a factor from the start.

Events like Block Cancer feature 30 college basketball games in 28 cities, providing free cancer screenings and opportunities to learn about combatting the disease. For the past two years at the Regions Tradition, a major event on the PGA TOUR Champions schedule, fans of Hall of Fame golfers also had the chance to get free screenings. In a matter of minutes.

Cure rates are really high when detected early. You want to get screening and detection early so we have options.

Jeffrey Nix, member of the Mike Slive Foundation board of directors

The field of prostate cancer research has seen numerous breakthroughs over the last few years. Certainly, research funded by the Mike Slive Foundation and others has played a significant role.

But the best prevention remains the standard: early screening.

“Cure rates are really high when detected early,” Nix said. “You want to get screening and detection early so we have options. But at the same time we need more research for prostate cancer at advanced stages so we don’t have to continue to lose family members like Mike..”

The Mike Slive Foundation also fills a void in an area of the country that has some of the highest incidences of prostate cancer, but also lacks access to screening and treatment.

“When we started, we knew there was a regional void in the Southeast in terms of research,” Nix said. “And there are higher instances of prostate cancer here. But just a few hours from where we are in Birmingham (Alabama), access to healthcare is dramatically different.”

By making screening and treatment more accessible, and by funding research to find a cure, the Mike Slive Foundation is following its founder vision.

“Mike knew this was a big space, with room for improvement,” Nix said. “And, each day, we are seeing improvement and better results.”

But many of the hangups remain entrenched.

Most cancer startups, in terms of research funding, take years before they become well-enough established to start the process of grant funding. Yet the Slive Foundation started grant funding within the first year, which is amazing.

Jeffrey Nix

“When you get a cancer diagnosis, it’s hard to get men to talk about it or to feel good about it. Our relationship between sports and men’s health is an obvious way to reach men.

“We’ve seen a myriad of breakthroughs, but the reality is that research takes money. That remains a major focus. So, too, education and screening because cure rates are really high when we diagnose men early.”

Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

THIS PROMOTION IS IN NO WAY SPONSORED, ENDORSED, ADMINISTERED BY OR ASSOCIATED WITH EARLY WARNING SERVICES, LLC OR ZELLE®.

Originally posted on GFANZ on September 19, 2023

The Glasgow Financial Alliance for Net Zero (GFANZ) Secretariat today launched a consultation on its work to further refine the definitions of its transition finance strategies and support financial institutions to forecast the impact of these strategies on reducing emissions.

In 2022, GFANZ identified four strategies necessary for financing a whole economy transition to net zero, which collectively comprise “Transition Finance.” These are defined as financing or enabling:

The development and scaling of climate solutions;Assets or companies already aligned to a 1.5 degrees Celsius pathway;Assets or companies committed to transitioning in line with 1.5 degrees C-aligned pathways; andThe accelerated managed phaseout of high-emitting physical assets.

Achieving a whole economy transition will require common definitions of transition finance across the four strategies and common methodologies for measuring their impact on emissions. Creating consistent definitions that are applicable across markets and sectors will help to scale transition finance to ensure real-economy decarbonization, help financial institutions independently identify their risk exposure and the investment opportunity ahead. They can also serve as safeguards to verify that the reduction of emissions in their portfolios corresponds to actual emissions reductions in the real world, rather than being achieved solely through divestment from high-emitting assets.

The consultation paper issued today seeks market feedback on a principles-based approach to segment portfolios by the four key strategies and highlights potential approaches to estimate associated decarbonization contribution impact, drawing on existing methodologies and concepts. The principles outlined in the consultation document are designed to be voluntary, pan-sector and globally applicable. They build on previous GFANZ publications, existing practices, transition finance frameworks, and potential decarbonization contribution methodologies.

The work also highlights the importance of real-economy transition plans, part of a suite of attributes, for entities, assets, and activities to be considered transition finance by the financial sector. For example, proposed attributes for aligning entities may encompass a net zero by 2050 commitment, the presence of a transparent net-zero transition plan and the inclusion of low-carbon capex plans.

To provide further clarity around transition finance activities, this consultation proposes emerging technical approaches for measuring the decarbonization contribution of transition finance activities. It also introduces the concept of Expected Emissions Reductions (EER). This concept is applicable across the four key financing strategies but employs distinct approaches for each, allowing financial institutions to quantify the “emissions return” of their transition finance activities more effectively.

The public consultation begins today and will run for six-weeks until November 2, 2023. Feedback from all stakeholders will be considered and can be provided here. The final report will be published by COP28.

Michael R. Bloomberg, GFANZ Co-Chair and UN Special Envoy on Climate Ambition and Solutions: “GFANZ is working with the financial sector to tackle climate change and helping financial institutions to make their net-zero transition plans a reality. But more needs to be done to ensure that their impact is measured accurately, and today’s consultation aims to do that. The more the market has accurate and transparent data, the more capital will flow to climate projects, reducing emissions, improving public health, and growing the economy.”

Mark Carney, GFANZ Co-Chair and UN Special Envoy on Climate Action and Finance: “To achieve the largest and most rapid reduction in emissions possible, transition finance must be mobilized – urgently and at scale. Trillions of dollars are required to bring emissions down and private finance will need to play a central role. We need to be able to track impact by measuring the expected decarbonization contribution of financing. This consultation links decarbonization contribution methodologies to the GFANZ financing strategies as a proposed approach to measuring the impact of transition finance over time. We strongly encourage all stakeholders to take part in the consultation.”

Mary Schapiro, GFANZ Vice Chair: “Transforming the global economy to achieve net zero is the biggest challenge facing this generation. To move forward, we must apply more rigor to how we finance the transition and how that investment is truly driving decarbonization over time – but we must do this thoughtfully and in broad consultation. We encourage everyone who is committed to the net-zero transition to provide feedback and we welcome insights from the public and private sectors, civil society and academia to help us address the really difficult issues that are part of the net-zero transition.”

About GFANZ

The Glasgow Financial Alliance for Net Zero (GFANZ) is a global coalition of financial sector net-zero alliances working together to support the world’s transition to net-zero emissions by 2050. Through the net-zero alliances, GFANZ has united over 650 institutions across the financial sector, including banks, insurers, asset owners, asset managers, financial service providers, and investment consultants, spanning 50 countries and representing 40% of global private financial assets. To help unlock transition investment in developing economies, GFANZ regional networks work to support capital mobilization, expand participation, and reflect the diverse needs of financial institutions around the world.

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