Tag: 3BL

Whether for financial, legal, ethical, religious, or humanitarian reasons, it’s critical for companies today to keep their employees safe. This is true across all industries, but it’s especially important in sectors like manufacturing, where people operate large and potentially dangerous machinery.

Imagine you’re a global health and safety manager for a multinational automotive supplier. You’re not responsible for just one factory in one country, but rather for many types of facilities across various countries. Each has different regulations, cultural norms, and risks. Safety is a fundamental requirement, and the challenge is how to elevate machine safety practices to meet rigorous international standards across all these regions.

This is one example from one industry that demonstrates the complexity and the need for local knowledge when addressing occupational health challenges. Plus, the landscape and the risks continue to evolve.

In our Podcast Episode, Bridging Occupational Safety Across Borders, EHS experts Alizabeth Aramowicz Smith from Antea Group US, Bruno Zapata from Tonkin + Taylor in New Zealand, and Sofiane Kessouar, from Baden Consulting in Switzerland discuss this multifaceted landscape of occupational health and safety, spanning regions and industries. Read some key experts below or listen in to the full podcast episode above.

Q: How do you define occupational health? 
Alizabeth Aramowicz Smith: In the U.S., we often lump everything under “health and safety,” covering a broad range of topics from industrial hygiene to machine guarding. Occupational health here usually refers to medical surveillance, worker’s compensation, and injury and illness rates. However, other countries, especially in Europe, define occupational health more strictly and often have mandatory requirements.

Bruno Zapata: I like to see it holistically. Occupational health is about keeping people safe and healthy at work. It involves managing risks—physical, chemical, biological—that could lead to accidents or illnesses. The goal is a workplace where everyone can thrive without compromising their well-being.

Q: How does occupational health vary across regions? 
Alizabeth: Even in the U.S., different states have different regulations. For instance, California has stringent workplace violence regulations, while Washington focuses more on ergonomics. Globally, we see even more variation. Some countries, like Spain and Germany, require certified firms to handle occupational health, while in the U.S., it’s left to companies to formulate their own plans.

Bruno: Here in New Zealand, we’ve seen major changes since the Health and Safety at Work Act 2015. Companies are now more focused on preventing accidents rather than just reacting to them. Mental health is also a growing focus, with companies offering support and training to manage issues like stress and anxiety.

Q: How do local cultures influence safety practices? 
Bruno: In New Zealand’s forestry sector, we developed safety programs by incorporating local conditions like rough terrain and weather, as well as Māori values. This led to significant improvements in safety outcomes. It’s a great example of how understanding local culture can make global safety programs more effective.

Alizabeth: Australia also stands out with its prolific guidance documents. Some countries are more prescriptive in their regulations, while others leave room for companies to manage risks as they see fit. Fitting safety programs to a company’s culture can really make a difference.

Q: What about the impact of local culture in Europe? 
Sofiane Kessouar: In Europe, the cultural approach to work is changing rapidly. For example, many companies are improving employee well-being by adopting practices like extended paternity leave and providing family-friendly facilities. Some companies haven’t yet embraced these benefits, but those that have see it as an investment in their employees’ well-being. This cultural shift shows how integrating local perspectives and employee feedback is crucial for building a more positive workplace.

Q: What are the common workplace hazards you encounter in Europe? 
Sofiane: The most common occupational hazards I’ve seen include falls or accidents during emergencies, often due to a lack of preparedness. In some cases, the absence of a dedicated safety manager leads to employees being put at risk. It’s vital to ensure teams are trained and safety measures are implemented, especially in high-turnover environments. Spending time on-site to understand these challenges and addressing them based on local feedback can greatly reduce risk.

Q: How do industries differ in their approach to occupational health? 
Bruno: It varies by industry. For example, asbestos removal in New Zealand has clear, immediate risks, so safety measures are very strict. In contrast, office environments might deal with more invisible risks like burnout or harassment, which don’t always get the same level of attention but can still have serious long-term effects.

Q: Can you share a success story from your work in health and safety? 
Alizabeth: We worked with a tech company that used a graphic novel to communicate their safety programs. It was a creative way to engage younger employees who wouldn’t have responded to a traditional manual. Later, one employee credited the novel with helping him save a life in an emergency—a real testament to the impact of creative safety solutions.

Bruno: During COVID-19, I worked for a freight company that was essential for delivering medical supplies. We had to adapt quickly to keep people safe. It was a stressful time, but through collaboration and communication, we were able to make our team feel safe and supported.

Sofiane: One of my projects involved conducting satisfaction surveys to gauge how employees felt about their well-being at work. Unfortunately, the results were negative, highlighting the lack of engagement from the management in addressing employee concerns. This experience reinforced how crucial it is to actively listen to employees and address issues in a meaningful way.

Q: What are the key takeaways for leaders in occupational health today? 
Bruno: There’s no one-size-fits-all approach. You need to understand your company’s culture and collaborate with the right people to create tailored solutions. Always ask for feedback and avoid making assumptions.

Alizabeth: Leave your ego at the door and listen to your team. Sometimes the concerns aren’t just about work but about the culture or the times we’re living in. Engaged employees lead to a stronger safety culture.

Sofiane: It’s important to be present in the workplace to fully understand the issues. Solutions need to be tailored to each location, and local consultants can be invaluable in ensuring that safety programs are effectively adapted to specific needs.

What should leaders focus on for the future of occupational health?

Local context matters: Occupational health programs must be adapted to reflect local practices, conditions, and cultures.Listening is essential: Gathering feedback through cultural surveys or open dialogue helps build a unified safety culture.Be proactive, not reactive: Focusing on prevention and learning from incidents leads to better long-term outcomes.

For more insights and tools, check out the global resources available on the Inogen Alliance website. Together, we can continue to innovate, inspire, and rethink EHS for healthier workplaces worldwide.

Learn more about our Health and Safety Consulting Services.

Inogen Alliance is a global network made up of dozens of independent local businesses and over 6,000 consultants around the world who can help make your project a success. Our Associates collaborate closely to serve multinational corporations, government agencies, and nonprofit organizations, and we share knowledge and industry experience to provide the highest quality service to our clients. If you want to learn more about how you can work with Inogen Alliance, you can explore our Associates or Contact Us. Watch for more News & Blog updates here and follow us on LinkedIn.

When first responders are called to a building, and come face to face with a locked door, they need to get past it—fast.

Beyond that locked door wait people in distress. A child trapped, unable to reach the doorknob. An unresponsive adult with a medical emergency. An employee working alone who is injured and incapacitated on the job.

“All of these scenarios are ones we deal with on a daily basis,” explains Gary Wagner, assistant fire chief for the city of Westbrook, Maine, located seven miles inland from Portland, the state’s largest city.

“It’s this simple,” he emphasizes. “When you’re inside a building that you want to get out of, and there’s people on the outside of the building who want to reach you, then knowing how to get through a door is the difference between life and death.”

But forcible entry is a skill first responders need to practice. Unlike movie portrayals, they can’t use their bodies alone to barrel through; they need to apply force carefully, using the right tool, to break through a door in mere seconds.

Practicing forcible entry has been a challenge for the small fire department. For years, Westbrook Fire Rescue has been able to work on the skill only in rare circumstances, such as when a community member donates a building slated for demolition to the cause.

Although sporadic training is better than nothing, there are indestructible training prop doors that can be purchased that allow first responders to practice regularly.

“What a prop door does is allow responders to simulate making a rescue as quickly and effectively as possible,” Wagner says.

But with a price tag of nearly $12,000, the Westbrook fire department simply could not afford to use its meagre training budget to purchase the device.

Safety is our top priority at Enbridge; it’s the foundation of everything we do. When we heard about the need for this training prop to advance safety in the Westbrook community, we awarded the fire department a Fueling Futures grant of $7,500 to put toward the door.

Through our Safe Community First Responder Program, we are able to extend our commitment to safety and help organizations and first responders take vital steps to protecting their communities.

“What Enbridge asked us is, ‘What is your community need?’ This was our answer—the training door,” Wagner says.

Now the first responders can practise this critical skill at the station whenever they have time between calls—they respond to nearly 6,000 per year.

Remarks Wagner: “Everyone in the city benefits from our ability to get into buildings quickly to help them in an emergency.”

Complimentary Webinar

Navigating the EU Deforestation Regulation’s Due Diligence Requirements

October 23, 2024 | 11:00 AM ET/8:00 AM PT

REGISTER HERE

For global companies exporting goods into the EU, the landmark Regulation on Deforestation-Free Products (EUDR) will kick into high gear on December 30, 2024 when non-SME operators and traders will be required to comply with the regulation by submitting due diligence reports through the EU Information System, which becomes available for report uploads on December 16, 2024.

However, the European Commission’s recent proposal includes an extra 12 months of phasing-in time for companies; if approved by the European Parliament and Council, it would make the law applicable on 30 December 2025 for large companies and 30 June 2026 for micro- and small enterprises.  

Regardless of a potential change in timeline, it’s important for companies to pull their data together in the appropriate reporting framework. What will ensure that the data being reported is consistent, calculated correctly and compliant with the regulation?

Third-party due diligence verification is one solution that can support companies in their EUDR journey. Join SCS Global Services’ lead EUDR Sales Executive in Europe, Gustavo Bacchi, and EUDR Program Manager, Iris van Hal, who will host a 45-minute webinar on Wednesday, October 23, 2024 at 11 a.m. ET (5 p.m. CET, 8 a.m. PT) to detail the many advantages of having EUDR due diligence reports verified. During this discussion, you will learn:

How to meet the EUDR’s strict supply chain due diligence requirements and avoid costly penaltiesThe validation and verification process, including the key steps for transparency and risk mitigationHow to navigate the complexities of EUDR compliance: tools and strategies to efficiently verify product origins and ensure your business remains sustainable and competitive in the EU marketThe answers to your questions in real time from SCS EUDR experts ensuring you are prepared to meet upcoming regulatory deadlines

Register today to secure your spot!

By registering, you will get access to the webinar recording.

For inquiries, contact:

Madhumita Mohan 
Marketing Manager, SCS Global Services 
mmohan@scsglobalservices.com

CHRLOTTE, N.C., October 7, 2024 /3BL/ – Cooperative Minds – an educational initiative from Discovery Education and the CHS Foundation – presents new, free resources for students in grades 6-12 to explore careers in agriculture and agricultural cooperatives. Cooperative Minds shows students firsthand how collaboration and creativity are combined in agricultural co-ops to nourish communities, overcome challenges, and grow success.

Designed to help students explore the wide variety of careers in the agricultural industry, these new resources include a gamified immersive experience and three career profiles. The immersive learning experience “HARVEST: From Seed to Success” empowers students to step into the role of a farmer and discover what it takes to grow a successful harvest. In the experience, students consult agricultural professionals to analyze a soil sample, select crops and fertilizers, identify the right moment to harvest, and simulate operating a combine to harvest crops. An accompanying educator guide and ready-to-use student activities make it easy for educators to plug and play the resource into any lesson plan.

In addition, Cooperative Minds now offers new career profile videos featuring CHS professionals, including an electrician, a strategic sourcing specialist, and a flour production manager. Through the videos and accompanying resources, students discover the breadth of opportunities available in agriculture.

“The agricultural cooperative business model connects communities and inspires innovation every day. As we celebrate National Co-op Month and National Farmer’s Day in October, there’s no better moment to inspire and prepare students for a future in agriculture,” said Megan Wolle, president of the CHS Foundation. “We are excited to see students dive in and grow into the next generation of agricultural professionals.”

Learn more about these new free resources from the Cooperative Minds program at cooperative-minds.com and within Discovery Education Experience.

“Discovery Education proudly partners with the CHS Foundation to inspire student curiosity through real-world career connections,” said Beth Meyer, Vice President of Corporate Partnerships. “With gamified learning, we put students in the driver’s seat so they can experience what it’s like to work in the agricultural industry, broadening their horizons and career possibilities.”

For more information about Discovery Education’s award-winning digital resources and professional learning solutions, visit www.discoveryeducation.com, and stay connected with Discovery Education on social media through X, LinkedIn, Instagram, TikTok, and Facebook.

###

About CHS Foundation 
The CHS Foundation is funded by charitable gifts from CHS Inc., a leading global agribusiness owned by farmers, ranchers and cooperatives. The CHS Foundation is focused on developing ag leaders for life. We are achieving our goals through strategic initiatives including advancing understanding of the ag cooperative business model, cultivating student success through university partnerships, and growing high-impact ag leadership programs. For more information on our programs, visit chsfoundation.org.

About Discovery Education 
Discovery Education is the worldwide edtech leader whose state-of-the-art digital platform supports learning wherever it takes place. Through its award-winning multimedia content, instructional supports, innovative classroom tools, and corporate partnerships, Discovery Education helps educators deliver equitable learning experiences engaging all students and supporting higher academic achievement on a global scale. Discovery Education serves approximately 4.5 million educators and 45 million students worldwide, and its resources are accessed in over 100 countries and territories. Inspired by the global media company Warner Bros. Discovery, Inc. Discovery Education partners with districts, states, and trusted organizations to empower teachers with leading edtech solutions that support the success of all learners. Explore the future of education at www.discoveryeducation.com.

Contacts 
Grace Maliska 
Discovery Education 
Email: gmaliska@dicoveryed.com

KUALA LUMPUR, Malaysia, October 7, 2024 /3BL/ – Economies across Southeast Asia must overcome increasing energy transition complexities as they balance energy security and lower carbon emissions, said Black & Veatch, a global leader in critical human infrastructure solutions.

“The adverse impacts of climate change, including a rise in extreme weather events, persist in Southeast Asia. This highlights the urgency to take immediate action,” said Narsingh Chaudhary, president, Asia Pacific and India, Black & Veatch.

“While regional economies balance concerns about affordability, resilience, and security, the shift to low-carbon energy sources must accelerate despite increasing complexities,” said Chaudhary.

Chaudhary will be chairing the Opening Plenary on “Shaping Regional Energy Transition – From Malaysia to Beyond” on October 8 at Enlit Asia 2024, joined by leaders from Tenaga Nasional Berhad, Sarawak Energy Berhad, Malakoff and the Energy Commission Malaysia. The session will tackle the opportunities and challenges of addressing the energy transition in the region, chart progress made to date and discuss how the industry can plan and de-risk the next generation of infrastructure development.

“The energy transition presents significant commercial and technical challenges to deliver the next generation of reliable and affordable power,” continued Chaudhary. “Solutions will vary from case to case requiring regulation and project planning that de-risk and incentivize lower- and no-carbon solutions that work together. These solutions include LNG-to-power, carbon capture, renewables, energy storage and hydrogen.”

Attendees are invited to discover and engage with leaders from Black & Veatch, a trusted global engineering and construction company operating throughout the region for more than fifty years.

Energy Efficiency – Balancing the Energy Dichotomy of Security and a Net Zero FutureOctober 8 | Harry Harji, associate vice president, Global Advisory – Asia, Middle East and AfricaOvercoming Challenges in Hydrogen Supply Chain, Production and UtilizationOctober 9 | Jerin Raj, director – South & Southeast Asia and TaiwanMaximizing Asset Performance in Evolving Energy LandscapesOctober 9 | Ian Bramson, vice president – Global Industrial CybersecuritySecuring AI Deployment for Energy Transition and UtilitiesOctober 9 | Ian Bramson, vice president – Global Industrial CybersecurityPlanning and Optimal BESS Sizing for Hybrid RenewablesOctober 9 | Krishna Subramaniam, project manager

Enlit Asia 2024 is taking place at MITECm Kuala Lumpur from the 8 to 10 October.

Contact Black & Veatch for more information.

***

About Black & Veatch 
Black & Veatch is a 100-percent employee-owned global engineering, procurement, consulting and construction company with a more than 100-year track record of innovation in sustainable infrastructure. Since 1915, we have helped our clients improve the lives of people around the world by addressing the resilience and reliability of our most important infrastructure assets. Follow us on www.bv.com and on LinkedIn, Facebook, X (Twitter) and Instagram.

Media Contact Information: 
EMILY CHIA | +65 6335 6623 | Chialp@bv.com 
24-HOUR MEDIA EMAIL | Media@bv.com

As our loyal newsletter readers know, G&A Institute has been doing annual research on sustainability reporting trends for well over a decade. We recently released our 13th annual edition of Sustainability Report in Focus, tracking the publication of sustainability reports by the largest U.S. publicly traded companies in the S&P 500® Index and the Russell 1000® Index.

Our research showed substantial increases in sustainability reporting for both large-cap and mid-cap U.S. public companies, as the U.S. regulatory environment moves to follow Europe on required ESG reporting. A record 93% of Russell 1000 companies published a sustainability report in 2023 – an increase from 90% in 2022. The larger half by market cap of the Russell 1000 (i.e., the S&P 500) are nearing 100% reporters with 98.6% publishing a report in 2023.

G&A’s Co-Founders spoke out on the importance of being prepared for upcoming mandatory reporting. Louis Coppola, Executive Vice President, said, “The shift to mandatory reporting offers an unprecedented opportunity to enhance investor confidence, stakeholder trust, and operational resilience. This is an era where leadership in sustainability will define success.”

Hank Boerner, G&A’s Chairman and Chief Strategist, said, “When ESG disclosures are eventually mandated, which we expect will occur soon through pending and proposed measures, we believe companies reporting today will be well ahead in meeting these requirements.”

G&A’s 2024 Sustainability Reporting in Focus report provides analysis of corporate report content including reporting frameworks and standards used – such as the Global Reporting Initiative (GRI), Sustainable Accounting Standards Board (SASB), and Task Force on Climate-Related Financial Disclosures (TCFD). SASB continued to be the most widely used sustainability standard, with 81% of Russell 1000 reporters aligning with SASB in 2023 – up from 78% in 2022.

The report also includes analysis on how many companies align with initiatives such as the UN Sustainable Development Goals (SDGs), trends in external assurance, and CDP reporting. For the first time, G&A’s 2024 research includes sector-specific analysis of reporting trends within all 11 sectors of the Global Industry Classification Standard (GICS®), to provide additional insights into reporting behavior per industry sector.

The G&A team is ready to discuss our research and to provide counsel to help your company prepare for upcoming mandatory requirements. Reach out to us at info@ga-institute.com.

This is just the introduction of G&A’s Sustainability Highlights newsletter this week. Click here to view the full issue.

Originally published on 3M News Center

ST. PAUL, Minn., October 7, 2024 /3BL/ — 3M has launched the second season of 3M Clash of the Grinders, a video series featuring a head-to-head metalworking and welding competition that brings together the best and brightest students from welding schools across the United States. 3M’s Abrasive System Division held the week-long event featured in the video series in Minneapolis this summer, where 12 contestants competed for a $15,000 grand prize sponsored by 3M.

The first episode is now streaming on YouTube. The series will feature a total of eight episodes, airing weekly through Nov. 12.

Season 2 of 3M Clash of the Grinders dives deeper into the personal stories of our competitors, following their journeys and showcasing their skills. Watch as they tackle challenges that test their mettle and introduce them to the top 3M™ Cubitron™ 3 and Scotch-Brite™ abrasives.

“The skilled trades, including welding, are the backbone of our infrastructure and manufacturing sectors,” said Alisa Schilmoeller, 3M’s Abrasive Solutions marketing manager and Clash of the Grinders program lead. “Through this competition, 3M aims to spark interest and raise awareness of welding and skilled trades as exciting and rewarding career paths for young viewers.”

According to the American Welding Society, the U.S. now faces a shortage of over 400,000 welders. This presents an opportunity for young people to enter a field with high demand, competitive wages, and immense potential for career growth.

This competition was made possible through the generous support and partnerships with 3M Gives, National Coalition of Certification Centers, Weld.com, sponsor Linde, and guest host Nate Bowman, also known as @WeldScientist on social media.

About 3M:

3M (NYSE: MMM) believes science helps create a brighter world for everyone. By unlocking the power of people, ideas and science to reimagine what’s possible, our global team uniquely addresses the opportunities and challenges of our customers, communities, and planet. Learn how we’re working to improve lives and make what’s next at 3M.com/news.

October 7, 2024 /3BL/ -The North Georgia Conference of The United Methodist Church has deployed a solar-powered disaster response trailer, funded by the Ray C. Anderson Foundation, to Camp J.D. Tygart outside of Valdosta, Georgia. In support of local recovery efforts, the state-of-the-art solar microgrid is powering lights, large freezers, and refrigerators at the early responder team camp. It is the first solar microgrid of its type built in Georgia, for use in Georgia.

The trailer’s presence has allowed other generators to be used to power a pump for the well, allowing four toilets to be functional, and now volunteers can take showers, and have access to air conditioning.

The early response team (ERT) volunteers that are based at the camp are spending their days in the surrounding communities, aiding victims with clearing trees and other debris, providing food, water and medicine, assisting at shelters, and managing communication hubs that allow victims to reach out to their families.

The disaster response trailer combines environmental sustainability with the organization’s disaster ministry. It is a tangible example of the United Methodist Church’s commitment to creation care and environmental stewardship.

Solar microgrid trailers, which provide clean power, are easily towed to where they are needed most during an emergency.They can power cell phones, refrigeration, lighting, medical devices and other critical services.This practical implementation of solar energy in disaster response efforts is just one way that the general agencies of the UMC are leaning into their pledge to achieve net-zero emissions by 2050 across ministries, facilities, operations and investments.

A coalition of Southeastern U.S.-based partners unveiled the solar microgrid trailer in late 2023, marking a milestone in disaster response technology in the region. The Ray C. Anderson Foundation awarded a grant to The Footprint Project to constuct the trailer. Cherry Street Energy donated solar panels and technical assistance. The trailer was constructed at Adion Solar in Madison, Georgia with assistance from Sol-Ark, an energy storage company. The United Methodist Committee on Relief and the North Georgia Conference of The United Methodist Church manage, operate and deploy the trailer.

Media Contacts:

Sybil Davidson, North Georgia Conference of the United Methodist Church

sybil@ngumc.org

Kim Speece, Media Contact for United Methodist Committee on Relief and UMC Global Ministries

kim@leffassociates.com

Originally published on DICK’S Sporting Goods Sideline Report

They were fierce Philadelphia-area rivals on and off the football field for over 40 years. Then ahead of the 2013-2014 school year, Germantown and Martin Luther King High Schools were forced to merge as the result of a budget crisis plaguing the Philadelphia School District.

The budget crisis left dozens of schools closed, including Germantown, the fate of sports programs in the entire district uncertain and 4,000 staff members laid off. Ed Dunn, a math teacher and assistant football coach at Germantown, was one of those staff members.

As told in “We Could Be King”, a 2014 documentary by DICK’S Sporting Goods and Tribeca Films, Dunn volunteered to be head coach of the MLK Cougars. He inspired the players to come together and lift each other up in football and in life. What began as a rocky start to the season ended with the team defying the odds and winning the Philadelphia Public League Class AAA Championship.

Following the documentary’s release, The DICK’S Sporting Goods Foundation presented the Philadelphia School District with a $250,000 Sports Matter Grant to keep sports programs in the district funded.

10 years later, The DICK’S Foundation returned to MLK High School to catch up with Dunn, who went on to coach the MLK Cougars from 2013-2018, and current head coach Malik Jones. Both still use the power of sport to change lives.

“Football is the only way they can get off of the streets,” Jones said. “We need to keep this program alive so that these kids have a fighting chance.”

The players aren’t just coached in football. They learn valuable life lessons too.

“We maintain not only physical health, but mental health,” Dunn said. “We’re teaching them how to decompress and how to unpack their emotions.”

Ahead of the 2024 season, The DICK’S Sporting Goods Foundation had two surprises for the MLK Cougars.

One Dunn and Jones knew about – a locker room full of new gear for the players from Nike and Hyperice.

The second was a surprise for all – a $100,000 Sports Matter Grant commitment to celebrate the 10th Anniversary of the Sports Matter Program – bringing both Dunn and Jones to tears.

“Here’s to another 10 years,” Dunn said.

To learn more about The DICK’S Sporting Goods Foundation, visit www.sportsmatter.org.

You can stream “We Could Be King” on Amazon Prime, Apple TV, Peacock, PLEX, Pluto TV and Tubi.

Written by Hilary Totin

Xiaoyu Gu| Managing Director—AB CarVal

Kent Hargis, PhD| Chief Investment Officer—Strategic Core Equities; Portfolio Manager—Global Low Carbon Strategy

Kathleen Dumes, CFA| Responsible Investing Research Analyst—Fixed Income Responsible Investing

The case for renewables transcends politics.

The US Inflation Reduction Act has boosted investment opportunities in renewable energy. Could the potential for new leadership in Washington change that? We don’t think so.

In the two years since it became law, the IRA has intensified efforts to build renewable energy projects across the United States. It’s done this primarily by expanding federal tax credits for qualifying investments, including electric vehicles, solar and wind power generation, and the utility-scale batteries needed to store it.

The law passed in 2022 entirely with Democratic votes, and Republicans may attempt to roll back some of its provisions if they win Congress and the White House in November.

It’s About the Economics

We think a full IRA repeal is unlikely, and here’s why: the case for renewables and other private-sector energy management solutions is economic. Renewable energy fills a vital need for the US power grid, and at a lower cost than fossil fuels. What’s more, we think it could make the US economy stronger.

The transition away from fossil fuel isn’t new. It cuts across party lines, too. Annual US carbon emissions declined steadily from 2001 to 2022—a stretch during which both parties were in the White House. Crude oil and natural gas production grew over the same period, but so did clean-energy capacity.

And with the US, along with other countries, having pledged to meet net zero carbon emissions targets by 2050, we expect reliance on clean energy sources to increase regardless of election outcomes.

IRA Expanding Financial Incentives

Before the IRA, production and investment tax credits were limited to certain sectors—primarily wind and solar—and had to be renewed by Congress often.

The IRA extended the time frame for the credits by at least a decade, providing greater visibility for developers and investors. It also expanded the credits to more asset classes and, in some cases, provided more value. In some circumstances, credits may add up to more than half of the total cost (Display).

Even at today’s high interest rates, the tax credits are reducing construction costs for a range of renewable energy projects, including solar and wind power. They’re also widening return potential for public and private investors willing to fund those projects.

Where We See Investment Potential

A key area of focus involves updating the 60-year-old US power grid, which struggles to meet today’s electricity needs. Charging an electric car battery, for example, can pull up to 150 kilowatts from the grid—the equivalent of 1,500 100-watt lightbulbs—in less than an hour. Commercial, industrial and utility-scale battery storage assets help to meet increased electricity demand while also delivering other important services that can provide attractive opportunities for investors.

Perhaps the most important: batteries help keep grids stable and reliable by managing the distribution of electricity in real time. This helps prevent sudden surges in demand from events like storms or wildfires that can cause blackouts.

Batteries can also be an alternative to costly infrastructure investment. Adding one to an area where the grid is constrained can reduce power bottlenecks far more cost-effectively than building new transmission and distribution lines.

US banks are a key capital source for such massive infrastructure investments. But stricter regulations are creating opportunities for private lenders. We think the combination of tax credits and project-generated cash flow have the potential to deliver attractive returns to private credit investors who extend loans to solar and storage projects backed by collateral, or who help developers gain access to tax credits.

Opportunity Beyond Renewables

We also see public debt opportunities among utilities that need to finance grid updates with multiyear capital expenditure plans and in companies across industries that are issuing ESG-labeled bonds with more transparent structures, increasingly ambitious targets, and credible plans to meet them.

And renewables are only part of the story. Industrial companies today are striving to reduce emissions through efficient energy technologies, and we think low-carbon equity strategies may uncover opportunity in companies that aim to help others lower their carbon footprints. These include providers of the smart-grid technology used to build energy-efficient buildings and high-voltage cable manufacturers that help connect the grid to renewable power generation.

What Might Change—and What Probably Won’t

A Republican win in November could alter the investment opportunity set—and for a time increase uncertainty in the US. A new president may seek to change aspects of the law, such as EV subsidies, or use some of its unspent revenue to fund other priorities, such as boosting exports or cutting taxes.

But as we see it, the challenge of shoring up an overextended grid will persist no matter who’s governing, making an outright repeal of the IRA difficult for several reasons:

Renewable energy jobs: In the IRA’s first year, 280 renewable energy projects were announced across 45 US states, representing about $280 billion in new investment, $225 billion of it in Republican districts, according to Goldman Sachs. This could create more than 150,000 new jobs, mostly in states that tend to vote Republican.Broad regional impact: The law’s potential impact across regions may explain why Republican lawmakers recently urged House leadership to preserve clean energy tax credits if House control changes hands. They’re seen as critical to driving investment as natural gas and coal plants are decommissioned by utilities striving to reach net zero greenhouse gas (GHG) emissions by 2050. Fossil fuel firms have also expressed interest in other projects supported by tax credits, including carbon emissions capture and green hydrogen.Global disclosure requirements: Even if the SEC climate disclosure rule were repealed, which we don’t think is likely, US companies would still have to comply with mandatory climate disclosure requirements in jurisdictions around the world (Display). Paring back the federal law wouldn’t do the same at the state level. Several states, led by California, require public companies to disclose GHG emissions and climate-related risk.

Election results typically have consequences for policy—and the upcoming US contest is no exception. But when it comes to investing in clean energy development, we don’t think the potential doomsday scenarios are particularly convincing.

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

Learn more about AB’s approach to responsibility here.