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Authored by the nonprofit sustainability group Ceres in collaboration with investment consulting firm Mercer, the report analyzes fossil fuel holdings of the top 40 U.S. insurance groups, whose collective investments in coal, oil & gas and electric/gas utilities are worth $459 billion. The insurers' investment data reflects information from insurers' 2014 year-end statutory filings. Many of the insurance groups analyzed had significantly higher fossil fuel fixed-income investments than the benchmark Barclays U.S. Aggregate Bond Index.
"The global trend toward clean energy has significant implications for fossil fuel companies and their investors if action is not taken to manage climate risks," said Mindy Lubber, president of Ceres and director of the Investor Network on Climate Risk. "Our hope is the report recommendations provide a roadmap for insurers and regulators to better manage these risks and seize opportunities that come from this energy transformation."
The report comes as fossil fuel holdings have shown to be increasingly risky. Sixty-nine North American oil & gas producers have filed for bankruptcy since the beginning of 2015. Also, a Ceres' analysis found that over 70 percent of the top oil and gas companies invested in by the 10 largest insurance groups and rated by Moody's or S&P have been subject to some sort of credit downgrade in 2015 and 2016. Even ExxonMobil lost its triple-A bond rating last month.
Key findings from, Assets or Liabilities? Fossil Fuel Investments of Leading U.S. Insurers, include:
Wide-ranging differences in oil/gas holdings are found among U.S. insurance groups. There are wide variations in concentrations of fossil fuel holdings among the 40 insurance groups Ceres analyzed. Insurance groups such as Ameriprise (12.4%), Lincoln National (11.8%) and Voya Financial (10.9%) had oil & gas bond holdings of well over 10 percent, more than double the median bond portfolio concentrations of the overall group (5.1%). Four groups had concentrations at 2 percent or less, the lowest being Progressive (0.2%)
The vast majority of the insurers' oil & gas investments —81 percent of $221 billion—were held in bonds issued by companies used to finance extraction and other capital expenditures, as well working capital. Recently, at least one of the largest oil & gas companies—ExxonMobil—has been selling bonds to cover the cost of shareholder dividends.
Big differences found in electric/gas utilities holdings, as well. The report also saw a wide range in electric/gas utilities bond holdings, with the highest concentrations held by John Hancock (16.8%), Pacific Life (16.0%) and Lincoln National (14.4%). Lowest were Progressive (.5%) and QBE (0%). However, this report does not take into account the fuel mix of these utilities.
Coal investments are small, while clean energy holdings should be larger. Coal is a minuscule part of insurers' overall holdings, accounting for only $1.8 billion, four times less than the $7.2 billion invested in renewable energy. Insurers' renewable energy investments, while growing do not yet reflect the scale of clean energy investment opportunities required to avoid dangerous climate change. A Mercer study cites huge opportunities in clean energy, with average expected annual returns expected to increase from over six percent to as high as 10 percent.
The risks are especially pronounced in wake of the 2015 Paris climate deal; it has been estimated that a third of oil reserves, half of natural gas reserves and over 80 percent of coal reserves from 2010 to 2050 will need to remain unused in order to meet COP21's goal of limiting global temperature rise to below two degrees Celsius.
"Our analysis suggests that a carbon emissions trajectory consistent with a 2 degree pathway – which the entire world supported in the Paris Agreement –would reduce the revenues of the upstream fossil-fuel industry globally by a cumulative $33 trillion by 2040 (in constant 2014 U.S. dollars) relative to the current trajectory the world is on," said Mark Lewis, managing director of European Utilities Research at Barclays Investment Bank. "This number is simply too big for investors to ignore and should galvanize investor engagement with fossil fuel companies on the risk of stranded assets."
The report provides several recommendations for insurers and regulators to manage these risks, calling on insurance board of directors to make climate risk management an integral part of their investment decision-making. It is recommended that boards consider requiring the insurers' Investment Policy Statement (IPS) to explicitly include a climate risk management strategy, which should be reviewed on a regular basis.
"Using a bottom-up approach to determine the fossil fuel exposures of equity and bond portfolios is a key step insurance groups ought to consider taking to better understand the potential risk of their investments to climate change," said Deb Clarke, global head of research at Mercer. "Coupled with top-down climate change modelling approaches such as described in Mercer's Investing in a Time of Climate Change report would reveal even more about portfolio climate resilience."
Insurance regulators, who are responsible for the financial soundness of insurers, should require insurers to disclose their investments. It is recommended that regulators adopt a universally recognized source for insurers to provide this information-- for example, within their Supplemental Investment Risks Interrogatories.
California Insurance Commissioner Dave Jones called on all insurers operating in California to publicly disclose carbon-based investments annually in January of this year.
"As nations, states, and local governments across the world adopt more policies to restrict the burning of carbon in the face of climate change, there is a risk that investments in coal, oil and gas will become stranded assets of diminishing or no value. It is important for insurers to take action to identify and evaluate their potential investment exposure to climate change risks, both of which are necessary before implementing strategies to reduce climate risks," said Commissioner Jones, who spoke at today's news conference on the report. "That's why I've called on all insurers to identify and publicly disclose their carbon-based investments annually and encourage other state insurance commissioners to take the same action."
"U.S. insurance regulators have demonstrated leadership on the issue of climate change-related risks through new disclosure requirements and revised examination processes," added Cynthia McHale, the report's lead author and director of Ceres' insurance program. "To ensure financial stability in a time of growing carbon asset risk, regulators should now consider a number of new actions to make carbon asset risk management part of insurer financial supervision and market oversight."
To read a complete list of findings and recommendations, download the full report: http://www.ceres.org/resources/reports/assets-or-liabilities-fossil-fuel-investments-of-leading-u.s.-insurers/view
Ceres is a nonprofit organization mobilizing many of the world's largest companies and investors to take stronger action on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of more than 120 institutional investors with collective assets totaling more than $14 trillion. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for stronger climate and clean energy policies. For more information, visit http://www.ceres.org or follow on Twitter @CeresNews]]>
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, Texas 75039-2298
May 16, 2016
Dear ExxonMobil Shareholders:
To address comments and questions raised by some shareholders regarding Item 12 - Report on Impacts of Climate Change Policies in ExxonMobil's Proxy Statement, we would like to emphasize the following:
1. ExxonMobil's Outlook for Energy, available at www.exxonmobil.com/energyoutlook, is not a "business as usual" forecast of global energy supply/demand. It includes impacts from anticipated government policies to reduce greenhouse gas emissions that are consistent with the nationally determined contributions under the Paris Agreement, and in fact anticipates further government actions beyond those committed under the Paris Agreement. In other words, the Company's Outlook, which is reviewed and updated annually, does encompass the results of COP 21 in its planning basis. ExxonMobil's projected energy demand and sources of supply as detailed in the Outlook are generally consistent with other third-party forecasting organizations, such as the International Energy Agency (IEA) as well as published reports by industry peers.
|Ceres Response: Exxon's most recent Outlook for Energy does not include a scenario consistent with the Paris Agreement. The Paris Agreement established a commitment from all 195 nations to keep global average temperature rise to well below 2 degrees. This simple chart shows that Exxon's forecasted demand for oil is far in excess of the projections by other reputable sources for demand for oil under a 2 degree scenario.
2. ExxonMobil has already reported on the potential impact of a "low carbon scenario" (representative of a 2 degree Celsius scenario as requested by proponents) in its 2014 published white paper, entitled Energy and Carbon – Managing the Risks (http://corporate.exxonmobil.com/en/current-issues/climate-policy/climate-perspectives/engagement-to-address-climate-change). As that paper shows (Page 11), even in IEA's 450 scenario, which represents an energy pathway consistent with 2 degree Celsius, significant hydrocarbon investment will be necessary to meet demand requirements.
Ceres Response: Exxon made this claim when it asked the Securities and Exchange Commission to allow it to exclude Item 12 from the proxy statement. The Securities and Exchange Commission rejected this argument out of hand, explaining: "[I]t does not appear that ExxonMobil's public disclosures compare favorably with the guidelines of the proposal."
The mere fact that some level of oil and gas will be needed under a 2 degree scenario does not provide any indication of whether ExxonMobil's supply will be economically competitive. Given recent changes in market strategies by Saudi Arabia, Iran, and Russia, investors need to know how ExxonMobil's portfolio of resources and planned projects would compete against other market players in a lower demand scenario.The full text of the correspondence with the SEC, ExxonMobil, and the filers is available here.
3. Our investments are "stress tested" across a broad range of economic variables, not just a single scenario, to help ensure economic viability, resilience, and long-term value creation.
|Ceres Response: We are glad to see ExxonMobil acknowledge that "stress testing" such as that requested by the shareholder proposal is an important part of capital planning. Investors are simply asking that ExxonMobil provide them with a public report of such stress testing including decision-useful information about the impacts on ExxonMobil's portfolio so that investors can assess ExxonMobil's business strategy and capital planning. ExxonMobil's peers, including Shell, BP, Statoil, Total, ConocoPhillips, and BHP Billiton have all begun to provide some level of reporting on such stress testing to investors to assure them that they are preparing for the energy transition.
4. ExxonMobil actively participates in a coalition of oil and gas producers, the International Petroleum Industry Environmental Conservation Association (IPIECA). IPIECA addresses the pathway to a low carbon emissions future in its Paris Puzzle publication (www.ipieca.org/paris-puzzle), publicly addressing the same topic as the Oil and Gas Climate Initiative (OGCI) but through a structured, long-established organization that has standing with the United Nations and whose members provide close to 60% of the world's energy.
|Ceres Response: ExxonMobil has not provided any indication that it is positively engaging with trade associations, governments, or the United Nations to support policies that limit global average temperature rise to less than 2 degrees. Rather, ExxonMobil publicly refused to join the OGCI's calls for carbon pricing and support for the 2 degree target ahead of the Paris Conference.
5. ExxonMobil maintains committed research in low carbon emission technologies including algae and carbon capture and sequestration. More information can be found at www.exxonmobil.com/technology.
|Ceres Response: While we are pleased to see ExxonMobil investing in low-carbon R&D, the company does not provide any details on how much of its spending is devoted to low-carbon initiatives, making it impossible for investors to assess their significance.
In summary, we believe that ExxonMobil's current processes sufficiently test the portfolio to ensure long-term shareholder value and resilience, and we remain confident in the commercial viability of our portfolio. For further discussion on this proposal and other important items, please review our proxy materials at www.exxonmobil.com/proxymaterials.
Ceres Response: ISS and Glass Lewis, the major proxy advisory firms, have both recommended that investors vote in favor of Item 12, and investors representing $10T in assets have also come out publicly in favor of the proposal.
ExxonMobil's current processes do not allow shareholders to engage with its board nor do those processes provide any details regarding the company's commercial viability under scenarios other than the one laid out in its annual energy outlook.
For more information please view the proxy memos prepared by the Church of England, the Vermont Pension Investment Committee and CalPERS.
Thank you for your continued support.
Proceeds from the USD $240 million Wastewater Revenue Bond will fund eligible projects in sustainable stormwater management and wastewater projects included in the SFPUC Sewer System Improvement Program (SSIP) Phase1. International research and analysis firm Sustainalytics has provided third-party verification that the SFPUC bond conforms with the Climate Bonds Standard.
"Climate Bonds Certification for this wastewater bond, a US and global first, is an important evolutionary step for green infrastructure financing, said Harlan Kelly Jr General Manager SFPUC. "Our City's sewer system was built to last a hundred years; it's only fitting that we use the latest, most innovative financing techniques to ensure our infrastructure can overcome future environmental challenges while meeting the needs of our community for the next 100 years."
"Having a prominent public authority like SFPUC issue the first bond certified against the Water Climate Bonds Standard is a tremendous vote of confidence. It's a public demonstration that the Standard provides verifiable, science-based criteria for evaluating water-related bonds that are relevant and applicable for the international bond market," said Sean Kidney, CEO, Climate Bonds Initiative." SFPUC is leading by example with this certified bond issuance; they open a path for other public authorities to issue certified climate bonds for water projects."
"San Francisco's leadership in issuing the first certified green water bond is a historic step in advancing this nascent but important market to finance sustainable water infrastructure," said Mindy Lubber, president of the nonprofit group Ceres, who collaborated with Climate Bonds Initiative and others to develop the standard. "Water infrastructure is vastly underfunded and it's especially so with sustainable water infrastructure, which is critical for helping us adapt to the extremes of climate change. Enacting this standard will be extremely helpful in catalyzing credible growth in this hugely important market."
A report issued by California Treasurer John Chiang in February estimated that California's infrastructure "funding gap" for water is about USD $24 billion.
"I am working to grow the green bond market in California and the United States. There is great demand for environmentally related securities. Unfortunately, the supply remains tight, limiting our ability to finance critical projects for combatting climate change. The San Francisco Public Utilities Commission waste water green bonds, which have been certified as meeting the "Climate Bonds Standard," are a step toward meeting this market need," said California State Treasurer John Chiang.
Water bonds are a subset of "green bonds," a fast-growing financial instrument for earmarking private financing to fund environmental projects. The green bond market has grown rapidly since the first issuance less than ten years ago, reaching USD $41.8 billion globally in 2015.
"We see green bonds as a fantastic way to seek performance and impact for our clients in one package, and standards on certification and reporting are essential. The SFPUC's issuance of a certified green bond is a big step forward—we strongly believe that bonds like this will spur credible growth in this important market and boost investor confidence that green bonds are producing positive and meaningful environmental impact," said Amy Hauter, ESG Research Analyst at Brown Advisory.
The Water Climate Bonds Criteria were created to provide investors with verifiable, science-based metrics for evaluating bonds earmarked for financing sustainable water infrastructure projects. The Criteria will also help corporate, municipal and other bond issuers expand their green bond offerings into water-related projects. These criteria can be used to evaluate projects as diverse as energy or industrial water efficiency, reuse, catchment or watershed restoration and or large-scale water supply infrastructure development.
Notes for Journalists:
About Ceres: Ceres is a nonprofit organization mobilizing many of the world's largest companies and investors to take stronger action on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of over 120 institutional investors with collective assets totaling more than $14 trillion. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for stronger climate and clan energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
About Climate Bonds Initiative: The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy. Information regarding certification of this SFPUC bond can be found here.
About SFPUC: The San Francisco Public Utilities Commission is the third largest municipal utility agency in California providing retail drinking water and wastewater services to San Francisco, wholesale water to three Bay Area counties, and green hydroelectric and solar power to retail customers and municipal departments. More information.
The SFPUC's Wastewater Enterprise maintains a combined sewage and storm water collection, treatment and disposal system, which includes three treatment plants and 993 miles of combined sewers for homes, businesses, and street runoff. More information here.
About Climate Bonds Standard: Climate Bonds Standard is an overarching multi-sector standard that allows investors and intermediaries to have confidence in the environmental integrity of bonds labelled as green and or funding low carbon development. There are pre-issuance requirements, post-issuance requirements and a streamlined certification process to match the tempo of the mainstream debt capital markets.
About the Water Criteria: In partnership with Ceres, the Alliance for Global Water Adaptation, CDP, and the World Resources Institute (WRI), the Climate Bonds Initiative has developed a new Water Climate Bonds Criteria with a focus on vulnerability assessment, climate mitigation and adaptation planning in the fixed income space.
Background to Climate Bonds Sector Criteria: The Climate Bonds Sector Criteria are developed by Technical Working Groups of academics and experts relevant to the sector.
Sector specific criteria are also fully functioning for solar, wind, low carbon buildings, geothermal and low carbon transport. Standards for bioenergy and agriculture & forestry are awaiting board approval having undergone public consultation.
This is surely the case as global businesses grapple with sustainability pressures like climate change, water risks and human rights challenges.
Just as the urgency and complexity of these threats are increasing, operating environments for businesses are also changing dramatically.
From the historic climate agreement forged by 195 countries in Paris to the international community's endorsement of the Guiding Principles on Business and Human Rights, governments worldwide are now unified on the urgency for realizing a low-carbon future and providing decent work and economic growth for all.
Today's world is markedly different from 2010, when we launched our Ceres Roadmap for Sustainability, with 20 specific expectations for sustainable corporations in the 21 st century.
That's why we — at our annual conference in Boston earlier this month — announced updated Ceres Roadmap expectations calling for accelerated action on key issues, including climate and clean energy, natural resource protections and fair, safe and equitable workplaces.
For example, we are now calling for companies to secure not just 30 percent of their energy from renewable sources by 2020, but to shoot for as high as 100 percent by 2030, as 50-plus companies participating in the RE100 initiative have already done. We are also calling on companies to look beyond their direct operations, by including their vast supply chains, in protecting scarce water resources and human rights.
A snapshot of the Ceres Roadmap
Time and time again at our two-day conference, I was reminded of why these expectations are both urgently necessary and achievable. I heard countless examples of powerful business and industry-wide responses that are putting the world on a new, more hopeful path.
Disruption in the electric power and transportation sectors, for example, is breathtaking.
On the clean transportation front, electric vehicle sales are surging as battery prices drop, vehicle-driving ranges increase and sticker prices fall. Sales jumped by 60 percent last year, with the biggest growth being in China. Bloomberg New Energy Finance recently predicted that by 2040, plug-in vehicles would make up about 35 percent of cars on the road.
"Look at your business, look at your household and think about why an electric vehicle makes sense," Britta Gross, director of advanced vehicle commercialization policy at General Motors, told more than 550 attendees on the first day of the conference. "There's no good reason why there isn't a plug-in vehicle in every driveway in this country right now."
Our updated Ceres Roadmap expectations call on companies to prioritize electric vehicles in their logistics and fleets, and to provide employees with the infrastructure needed to charge their vehicles at work.
I also heard about food companies upping their ambitions on climate and water issues, including General Mills, which is devoting far more attention these days to reducing water and carbon footprints in its vast supply chains compared to five years ago.
"Focusing just on our (direct) operations wasn't enough," John Church, executive vice president of supply chain, at General Mills, told a packed crowd.
We also heard about technological disruptions that are knocking down some of our biggest roadblocks to a sustainable future. The once-sacred idea of car ownership, for example, is losing its luster as ride-sharing options such as Uber take hold in places like China.
"Our business has grown a ton," Uber China's expansion manager Candice Lo said, outlining benefits such as reduced pollution and traffic congestion and less parking pressure in the world's populous country.
But perhaps the most encouraging message that I heard was the critical need for companies to systematically integrate sustainability into their core business.
Harmit Singh, chief financial officer at Levi Strauss & Co., and Mehmood Kahn, chief scientific officer at PepsiCo, both underscored the importance of considering environmental and social issues for their businesses in the short and long-term. They also emphasized the critical role the C-suite, including corporate directors, must play to drive sustainability into strategies and day-to- day decision-making.
So how can your business hasten its journey toward a more sustainable future?
Well, there's a map for that.]]>
But state leaders are sending mixed messages that may slow our progress on building a sustainable water infrastructure and encouraging a culture of water conservation across the state.
In response to the fact that more than 95 percent of the state is in some form of drought, Gov. Jerry Brown this week took steps to make some of the emergency water-conservation measures permanent. His executive order [PDF] requires the Department of Water Resources and the State Water Resources Board to develop new water use targets that will be part of a permanent framework, and to prohibit water-wasting practices including hosing clean sidewalks and driveways, using non-recirculated water in fountains and more.
But at the same time the State Water Resources Control Board issued a proposal to eliminate the mandatory water-conservation targets that have been imposed on every region since last year, allowing local water agencies to set their own conservation targetsuntil the permanent targets are in place.
While it's great that we have a governor who is taking action on the state's critical water crisis, and that some of these new rules are permanent, in the interim his State Water Board's proposed order could reinforce the sense that it's okay to let our hard-earned conservation successes backslide.
Felicia Marcus, chair of the State Water Resources Control Board, said as much to reporters this week, "This is not a time to start using water like it's 1999; we need to keep conserving all we can, whenever we can."
To be sure, these changes are in some ways logical: Water is a local issue, and a one-size-fits-all approach doesn't always make sense. Different water agencies have different mixes of water supply, some more resilient than others. Moreover, some areas of the state such as Northern California received more rain this winter than Southern California and other parts of the state, and thus should have the flexibility to manage local water supplies differently. Of note, the State Water Board addressed some of these site-specific conditions in the last update of the emergency regulations this past February.
But when water agencies like the East Bay Municipal Utility District so quickly begin "declaring the drought emergency over" andending fines for excessive water users, it raises a red flag for future water conservation. It's a big contradiction for the state to say that we are still in a drought, but Californians can still have lush, green lawns.
Although many Californians bristled at the mandatory water restrictions, the past year has shown that they worked: The state saved previously unimaginable amounts of water starting in June 2015, and those savings continued even through an occasionally wet winter. And suggesting that the problem is solved will mean we quickly lose those gains.
Already, public surveys find concern about the drought slipping dramatically between last fall and this spring.
Climate change is the new normal. Gov. Brown acknowledges this truth in his executive order. We need strong policies and regulations to help us maximize our local water supplies – we need to prepare for the droughts still to come.
At the California Water Policy Conference, held in April in Davis, Marcus acknowledged as much: "We have a lot to do collectively in front of us, and I don't mean just in water, I mean in everything, given climate change and what it's going to wreak while we're all still here," Marcus said. "It's not just an issue for future generations – everyone sitting in this room is seeing and will see the accelerating impacts of that and the disruption of it across every sector of the environment, public health and the economy."
I am as pleased as anyone that California finally received a wet winter, but it's not time to relax our efforts to save the water we have. Rather than require mandatory watering, as the East Bay community of Blackhawk has just done, now is the time to acknowledge that brown lawns – or no lawns – are a way of life, and start uncovering the many areas in which we can save water every day.]]>
The oil and gas sector is the largest source of methane emissions in the U.S., and methane is responsible for as much as 25 percent of global warming pollution.
"Investors and companies are concerned that methane emissions pose a serious threat to climate stability, accelerating the rate of warming in the near term and threatening infrastructure and economic harm," said Andrew Logan, director of the oil and gas program at Ceres. "Without strong methane regulations like we're seeing today, natural gas extraction is more a problem rather than a solution to a low-carbon transition."
"We welcome today's final rule on the new and modified methane sources and see it as a critical step in addressing this overhang for the oil and gas industry," said Jonas Kron, senior vice president at Trillium Asset Management. "Methane emissions pose significant risks for investors that warrants this EPA action and future rules for existing oil and gas infrastructure and operations."
Methane emissions from the oil and gas sector have been a long-standing concern of investors. Just last month investors representing nearly $4 trillion in assets spoke out in support last month for strong action by the U.S. and Canada to reduce methane emissions 40 to 45 percent by 2025, which EPA's new action will help support.
"The rule announced today is a significant down payment on the administration's commitment to reduce methane emissions from the oil sector," added Logan. "Moving forward EPA should redouble its efforts to develop standards for existing methane sources. These efforts will help the U.S. meet its global greenhouse gas commitments and confront climate change, while also promoting economic growth and leveling the economic playing field."
About Ceres
Ceres is a nonprofit organization mobilizing many of the world's largest companies and investors to take stronger action on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of more than 120 institutional investors with collective assets totaling more than $14 trillion. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for stronger climate and clean energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.]]>
Proxy advisory firm ISS has also announced recommendations in favor of similar resolutions pending at ExxonMobil, Chevron, and Anadarko. A number of powerful forces are moving investors and analysts to seek transparency, comparability, and decision-useful information from fossil fuel companies about how they are managing the energy transition. As oil prices continue to show volatility and defaults rise, credit ratings agencies such as S&P are downgrading even heavyweights such as ExxonMobil. The Financial Stability Board's Task Force on Climate-Related Financial Disclosures is fueling further analysis, and continued advances in technologies such as batteries, electric vehicles, and grid modernization are creating opportunities for cleaner energy and heightening risks for fossil fuels.
In this context, one would assume that western energy companies would be taking aggressive steps to ensure their economic viability in a rapidly decarbonizing world. Now is the time for their boards and executives to chart a path forward for resilience to a future where temperature rise is limited to well below 2 degrees Celsius, as the rest of the world envisions.
Similar resolutions are slated for votes in the coming weeks at Anadarko, First Energy, Chevron, ExxonMobil, and Southern Company. Investors around the world have pledged their support of portfolio resilience carbon asset risk resolutions at these companies, and if the votes at AES and Occidental Petroleum are any indication, this proxy season will mark a monumental shift on climate disclosure.
Learn more and pledge your support at http://www.ceres.org/issues/carbon-asset-risk/investor-support-of-portfolio-resilience-resolutions.]]>
The award is given annually by the nonprofit group Ceres and Trillium Asset Management to honor an inspiring global leader working to move capital markets toward a system that balances economic prosperity with social and environmental concerns.
The groups selected Figueres for her leadership in bringing together governments, corporations, investors, communities of faith and nonprofit groups to achieve a historic global climate change agreement, forged by 195 countries, in Paris. Figueres has been credited with forging a remarkable, new brand of collaborative diplomacy that enabled the agreement, which was signed by 175 countries April 22.
"I am incredibly honored to receive this award and recognition," Figueres said. "But I could not have done this work without the support of organizations, like Ceres, that played a major role in mobilizing businesses, investors and civil society at large to support the Paris Agreement. It was truly a global effort."
Throughout the negotiation process, Figueres focused on the economic opportunities of tackling climate change, which helped engage more companies and investor partners than ever before.
"Building investor and corporate support was a key ingredient in emboldening governments to act in Paris," said Ceres president Mindy Lubber, who attended the climate talks. "Figueres understands the importance of getting investors and other financial players into the mix in tackling climate change. She also understands the profound economic ripples of this issue, which enabled her to build unprecedented support from many of the world's largest companies and investors."
Figueres began leading the international climate change negotiations after the Copenhagen talks in 2009. As Executive Secretary, Figures was determined to take the negotiations forward in the hope of securing a universal climate change agreement supported by developed and developing countries alike. Over the next five years, she led a series of successful UN Climate Change Conferences, starting with Cancun in 2010 and culminating with the historical and much celebrated Paris Agreement in December 2015.
The award honors the memory of Joan Bavaria, a pioneer of social investing who founded Ceres and Trillium Asset Management. Past winners include: Geeta Aiyer, Founder and President of Boston Common Asset Management; Sister Patricia Daly, OP, executive director of the Tri-State Coalition for Responsible Investment; Tessa Tennant, President and co-founder of The Ice Organisation; and William Foote, founder and CEO of Root Capital.
"In the spirit of Joan Bavaria, for whom this award is named, Figueres has shown great leadership towards balancing environmental needs and economic prosperity when it comes to climate change," said Matt Patsky, CEO of Trillium Asset Management. "Her ability to achieve global consensus on one of the most important issues of our time is true to Joan's vision for building a sustainable economy."
In addition to the Joan Bavaria Award, Figueres has also received the Grand Medal of the City of Paris, the Ewald von Kleist Award from the Munich Security Conference, the 2015 Guardian Medal of Honour, the 2015 Hero of El Pais newspaper in Spain, and the 2016 Solar Champion Award from California's Vote Solar. The Nature Journal of Science listed her first on the list of 2015 Top 10, Foreign Policy Magazine recognized her as the 2015 Global Thinker, and in 2016 Fortune magazine listed her number seven of the World's 50 Greatest Leaders, the only female Latin American to be listed.
About Trillium Asset Management
Founded in 1982, Trillium Asset Management is an investment management firm with over $2 billion in assets under management. Trillium integrates Environmental, Social, and Governance (ESG) factors into the investment process as a way to seek to identify companies better positioned to deliver strong, long-term performance. Trillium has a long history of managing equity and fixed income portfolios for individuals, foundations, endowments, religious organizations, and other non-profits. For more information, visit www.trilliuminvest.com.
About Ceres
Ceres is a nonprofit organization mobilizing many of the world's largest companies and investors to take stronger action on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of over 120 institutional investors with collective assets totaling more than $14 trillion. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for stronger climate and clan energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
The tiny SolarKiosk, nestled near traditional thatched huts and surrounded by cows and goats, sells different-sized solar lanterns, as well as power for mobile phones and bottles of Fanta.
The people we met here were not thinking about global climate deals brokered in Paris. But villages, such as Bulbula, and countries, such as Ethiopia, are surely in the minds of government leaders assembling at the UN to ink a 32-page document that is our last great hope for curbing global carbon pollution at the levels needed to avoid dangerous climate change.
The Paris agreement is undoubtedly big on ambition; more than 170 countries signed the accord last week and most, including Ethiopia, have also committed to their own carbon pollution reduction plans. The big question is whether countries such as Ethiopia, India, China and even the U.S. can deliver on their promises so that the agreement can achieve its ultimate goal of limiting global temperature rise to well below two degrees Celsius.
While Ethiopia's current carbon footprint is tiny compared to developed countries, what happens down the road, as its economy grows, is a big question. The country's commitment—to be carbon neutral, even as its lifts 25 million people out of poverty, by 2025—is wildly ambitious. The fact that its population is soaring and that most rural communities still lack electricity—and need it—only adds to the challenge.
Six days of dusty, bumpy driving in southern Ethiopia makes clear that the country's economy is booming. Construction is everywhere: most of it in the form of partially built paved roads and concrete building shells with the ubiquitous eucalyptus-tree scaffolding. Further back from the roads, there are dozens of vast flower greenhouses and garment factories—key reasons why exports and the overall economy are growing at double-digit rates every year.
But it wasn't until day seven, roughly 1,200 kilometers in our trip, that we saw our first sign ofclean energy. Just north of Lake Langano we came across the SolarKiosk. Within seconds of pulling over, we were surrounded by dozens of villagers who were eager to talk about the solar shop's offerings, especially its portable lanterns that have transformed their lives.
The solar-powered kiosk, operated by a German firm and one of 31 in Ethiopia, provides power for solar lighting, mobile phones, batteries and even computers. It also sells a few varieties of solar lanterns, starting as low as $12 (basic lamp) and $25 (a lantern with a USB charger) up to as high as $150. Most villagers are using the small lamps, with a hand-sized solar panel, which provides six hours of light after every charge.
The SolarKiosk provides the rare source of light once the dusk starts setting in. This Solarkiosk is in Turmi, Gamo Gofa, Ethiopia. Photo credit: © Georg Schaumberger / SolarKiosk
Midhasso Hordofa, a subsistence farmer, has been using a small lamp for the past two years and the biggest benefit he mentions is charging his mobile phone.
Alima Badhsoo, whose husband runs the kiosk, has two lamps and she cites wide-ranging perks, including nighttime light so her oldest son can study and being able to "chase away hyenas" when they get too close.
The kiosk was the first in what is now more than 150 solar stands SolarKiosk is operating across Africa, most of them in rural areas where electric grids do not exist, says the company's general manager Roger Sobotker.
"We're playing a crucial role in addressing energy challenges in off-grid areas," said Sobotker, in an email exchange. "We're also replacing the existing use of unclean fuels."
While Sobotker could not cite exact sales figures in Africa, he says the response has been strong, with many customers "graduating" to bigger solar systems which can charge even computers and TVs. "We bring a bouquet of services—entertainment, access to the Internet, new products—which undoubtedly assist in arresting the migration of people to the city," he said.
SolarKiosks are an important contribution, for sure, but larger-scale solutions will obviously be needed, too, for Ethiopia to achieve its carbon-neutral commitment. Indeed, utility-scale projects—especially hydroelectricity and geothermal—are taking hold in many parts of the country—the most noteworthy being the Grand Renaissance Dam and hydro project near the headwaters of the Blue Nile River which flows to Egypt. Slated for completion next year, it will be Africa's largest hydro project, providing 6,000 megawatts.
During the time of our visit, in fact, an Icelandic company announced an MOU with the Ethiopian government to generate 1,000 megawatts from geothermal reserves near the southern Ethiopian town of Shashemene. The developer, Reykjavic Geothermal, plans to invest $4 billion in the project and signed the first power purchasing agreement in Ethiopia's history.
The agreement was made possible by a new—and hugely important—national law allowing private developers to generate and sell power to Ethiopian electric utilities.
We can only hope to see progress on more of these projects the next time we visit Ethiopia.]]>
A week after more than 170 countries signed the Paris Agreement and investors voted on a shareholder climate risk resolution at the AGM of US utility AES Corporation, a global network of more than 270 institutional investors (representing assets worth over €20 trillion) has published a guide setting out the threats facing the utilities sector and investor expectations for how these companies must act to adapt their business strategies to a 2°C climate change pathway.
Launching Investor Expectations of Electric Utilities Companies - Looking down the line at carbon asset risk Stephanie Pfeifer, CEO at the Institutional Investors Group on Climate Change said today: "With so many countries now clearly committed to implementing the Paris Agreement, institutional investors are concerned that some electric utility companies are not sufficiently prepared for the transition to a lower carbon economy necessary to limit global warming to well below 2°C. Today the global investor community is setting out as clearly as possible their expectations for utility companies on actions required to address climate change risks."
Matthias Narr, Engagement Specialist at asset manager Robeco and lead author of the guide added: "This guidance is designed to shape constructive engagement between investors and electric utilities through dialogue on the long-term risks and opportunities these companies face from climate change. Investors need to understand whether utility companies are prepared for the changing market dynamics that are likely to arise from the policies and actions put in place to limit global warming. Business strategy and capital allocation decisions made now and over the coming years will determine the future sustainability and profitability of electric utilities for decades ahead. Investors therefore have a clear need to establish that capital allocation decisions made by the boards of these utilities give due weight to the low carbon transition in ways that will protect both future sustainability and corporate profitability of the sector."
Dan Bakal, Director of the Electric Power Program at Ceres said, "During the 2016 proxy season investors are showing unequivocally through shareholder resolutions to companies such as AES that they expect electric power companies to address carbon asset risk by assessing the impact of a 2°C scenario on their future resilience. Going forward, asset owners and fund managers will need to know how power companies - and particularly the boards accountable for overseeing them - see the future impact of climate change on energy demand and pricing, as well as how they plan to align their business model with the GHG reductions required to deliver binding international agreements."
In addition to questions about policy, technology and demand changes the guide also encourages investors to ask utility companies about the management of legacy assets, including power generation plants that are no longer economical to use either due to a shift away from fossil fuels or as a consequence of increased water scarcity.
Commenting further Emma Herd, CEO at IGCC Australia and New Zealand added: "These risks are not theoretical, they are today's reality for utility companies and their investors across all markets. Climate change is already driving structural transformation in the energy sector. The risks and opportunities created by the transition to a net zero carbon global economy will continue to grow and the pace of change accelerate. It is vital that utility companies undertake comprehensive <2°C stress testing of their business activities and disclose to investors how their business model will fare in the face of climate change."
About the guide
Investor Expectations of Electric Utilities Companies - Looking down the line at carbon asset risk was developed by the Institutional Investors Group on Climate Change (IIGCC) with support from investor networks in North America (Ceres' INCR) and Australasia (IGCC). It is the third in a series of sector focused guides (joining others addressing engagement in the oil & gas and mining sectors) that aim to set a common agenda for investor engagement on climate change. It is also intended to be used in tandem with Institutional Investors' Expectations of Corporate Climate Risk Management (http://www.iigcc.org/publications/publication/institutional-investors-expectations-of-corporate-climate-risk-management ) and sets out investor expectations grouped into five areas of concern:
Notes for Editors
Investor Expectations of Electric Utilities Companies - Looking down the line at carbon asset risk has been prepared by IIGCC in collaboration with Ceres' INCR and IGCC (see below). It joins several guides produced previously for other sectors (oil, gas, mining) and can be used in conjunction with Institutional Investors' Expectations of Corporate Climate Risk Management.
Investors consider lack of transparency about carbon emissions, water use and long-term strategy a serious issue in the utilities sector, impacting their ability to calculate their portfolio's carbon intensity, assess carbon asset risk and evaluate dependence upon (reliable) water resources. In 2015, by market capitalization, 85% of European electric utilities reported carbon emissions to investors via CDP. The figures in other regions are significantly lower: only 45% of US electric utilities and 25% of electric utilities outside of the US or Europe.
The Institutional Investors Group on Climate Change (IIGCC) is a forum for collaboration on climate change for investors. IIGCC's network includes over 122 members, with some of the largest pension funds and asset managers in Europe, representing €13 trillion in assets. IIGCC's mission is to provide investors a common voice to encourage public policies, investment practices and corporate behaviour which address long-term risks and opportunities associated with climate change. See www.iigcc.org and @IIGCCnews
The Investor Network on Climate Risk (INCR) is a North America focused group of institutional investors dedicated to addressing the financial risks and investment opportunities posed by climate change and other sustainability challenges. INCR currently has more than 100 members representing over $13 trillion in assets. INCR is a project of Ceres, a non-profit advocate for sustainability leadership that mobilises investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy. See www.ceres.org and @INCRnews
The Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand institutional investors and advisors, managing over $1 trillion and focussing on the impact that climate change has on the financial value of investments. IGCC aims to encourage government policies and investment practices that address the risks and opportunities of climate change, for the ultimate benefit of superannuants and unit holders. See www.igcc.org.au and @IGCC_Update
The Asia Investor Group on Climate Change (AIGCC) is an initiative to create awareness among Asia's asset owners and financial institutions about the risks and opportunities associated with climate change and low carbon investing. AIGCC provides capacity for investors to share best practice and to collaborate on investment activity, credit analysis, risk management, engagement and policy. AIGCC represents the Asian voice in the evolving global discussions on climate change and the transition to a greener economy. See www.aigcc.net and @AIGCC_update]]>
In a letter to Berkshire Hathaway shareholders ahead of the company's annual meeting April 30 in Omaha, Buffett denies the impact of climate change on insurable weather-related events, despite scientists increasingly linking hurricanes and extreme weather to climate change. He notes that, due to the recent decline in super-catastrophe ("super-cat") events in the United States, "super-cat rates have fallen steadily in recent years, which is why [Berkshire has] backed away from that business," ignoring that this very volatility in business outlook is at least partly tied to increasingly unpredictable weather patterns.
Buffett also unrealistically suggests that the company can annually adjust its rates in response to changing climate exposures, seemingly without regard for potential rate shocks that could be triggered by such a reactive posture. Last but not least, Buffett argues that if major climate catastrophes become more frequent, the "likely… effect on Berkshire's insurance business would be to make it larger and more profitable." This latter argument ignores the checks and balances of both insurance regulation and market competition that protect consumers from such a "bring it on" mentality.
Buffett's comments, prompted by a shareholder resolution requesting a report on the Berkshire insurance division's responses to climate change risks, ought to cause a broad range of stakeholders to sit up and take notice. Shareholders and others who have a stake in the company's resilience and long-term value, as well as regulators who are focused on ensuring that customers have access to reliable, affordable insurance products, have vested interests in Berkshire's climate risk management approach.
Hurricanes, extreme weather and related risks on the rise
While it is true that the United States has not been struck by a major hurricane since 2005, hurricane expert Phil Klotzbach attributes this recent good fortune largely to luck, given that 27 major hurricanes in a row have not made landfall. Notably, even as the continental United States has been lucky in terms of the lack of seriously damaging hurricane activity in recent years, the Pacific Basin has not. Klotzbach notes that the Northern Hemisphere broke records in 2015 as El Nino's warm waters (possibly influenced by global warming) drove major tropical cyclone formations to a record-high 27, almost entirely in the Pacific. In February 2016, Tropical Cyclone Winston struck Fiji with 185 mph winds, the strongest Southern Hemisphere cyclone on record. Last October, Hurricane Patricia formed over super-heated ocean waters off the coast of Mexico, becoming the strongest hurricane ever recorded with peak wind speeds over 210 mph. In 2013, Supertyphoon Haiyan struck the Philippines with 196 mph winds, killing thousands and devastating the country. These figures are astonishing and alarming in and of themselves, let alone as portents of future catastrophic events.
While hurricane experts are careful to avoid conclusively linking a particular cyclone to climate change, MIT's Kerry Emanuel does conclude that the strongest tropical cyclones "have no doubt been influenced by natural and anthropogenic climate change." What happens when the United States' luck runs out and we are confronted by major hurricane impacts again? Are Berkshire's insurance businesses taking those possibilities into account? Buffett's recent rhetoric provides little confidence.
Climate change attribution science advancing
Aside from hurricanes, Buffett claims that climate change has not affected other weather-related events covered by insurance, a position that puts him at odds with a growing body of science and demonstrated on-the-ground impacts. A recent report from the National Academy of Sciences addresses the topic of whether a particular weather event was "caused by climate change" by refocusing the question as "to what extent was the event intensified or weakened because of climate change?"
The report finds that for individual weather events, scientists have the highest confidence attributing a climate change signal in heat and cold waves, like the record Pacific Northwest heat last June that fed $100 million in wildfire losses in Washington State, and Boston's record cold and snowy winter of 2015 that contributed to $2.1 billion in Northeastern insured winter storm losses. Scientists also see a climate signal in droughts, like the four-year-old drought that continues in California, and heavy precipitation, such as South Carolina's "once-in-a-thousand year" extreme rainfall-driven flooding last October.
Contrary to Buffett's claims, the question scientists are currently addressing is not whether climate change is affecting global weather, but how much of an effect climate change is having? Are Berkshire's insurance leaders considering their companies' exposures in light of these extreme weather trends? Again, leadership from the top seems to be demonstrably absent on these critical, evolving trends.
Troubling claims about climate change and insurance
Buffett's cavalier assertion of the company's supposed nimble ability to re-price products when the need arises also ignores regulatory and economic realities – with seemingly complete disregard for potential rate shocks – not to mention the sheer operational inefficiencies of a reactive approach to growing volatility in the external environment as a result of climate change.
In the U.S., state insurance regulators have the authority to approve or deny rate increases, changes to insurance products and coverages, and an insurer's desire to exit a market. Regulatory oversight is stringently enforced for personal lines insurance, such as auto and homeowners, which, through Berkshire's auto insurance giant GEICO is a major business line. If Berkshire seeks higher rates (or limits coverage), then the company would need to justify those changes to regulators, who could deny the requests. If denied, Berkshire would have to decide whether to accept lower rates than it would like, or seek to withdraw from a line of business or region no longer deemed attractive. Market withdrawal encompasses substantial costs for an insurer, however, including writing-off sunk operational costs, employee termination expenses and reputational damage – not to mention lost market share.
Thus, Buffett's claim that there is a "prompt translation" of increased possibilities of loss into increased premiums is not grounded in the reality of the checks and balances that protect the interests of customers and maintain competitive insurance markets.
Missed public engagement and investment opportunity
Rather than relying on reactive measures, Berkshire's insurance groups could assume a leadership role within the U.S. insurance sector by engaging policymakers and the public on climate risks. Berkshire could leverage its expertise and brand to advocate for more actuarially sound pricing in vulnerable regions along with calling for and financing smart, climate resilient infrastructure investments to reduce society's vulnerability to climate impacts while promoting the resilience of Berkshire Hathaway's own operations and bottom line. In this respect, the company should take a page from the cautionary tale of Superstorm Sandy and its wholly owned subsidiary GEICO.
When Superstorm Sandy pummeled the East Coast with massive storm surges, GEICO took record losses of nearly $500 million on 47,000 auto claims due to its exposure in the New York City region, including flood losses covered under GEICO's comprehensive auto insurance policies. With the largest auto market share in New York, Florida and New Jersey, three of the states most exposed to sea level-rise enhanced storm surge, GEICO could benefit from engaging with policymakers to advocate for smart flood protection policies and infrastructure spending to reduce inundation risks.
The bottom line
Buffett's comments on climate change and insurance reflect an unwillingness to confront the reality of the potential negative financial implications of climate change on Berkshire Hathaway's insurance operations. Indeed, his rhetoric raises more questions than answers for its customers and shareholders alike regarding missed opportunities to promote resilience in the face of a rapidly changing climate.
About the Authors
Cynthia McHale directs the Insurance Program at Ceres. She brings over twenty years of sector expertise working with many of the leading North American and European insurers, re-insurers and industry brokers. In her current role, Cynthia is leading a campaign to promote the insurance industry's understanding and leadership on climate risks and opportunities. As risk managers, risk carriers and major institutional investors, insurers have a vital interest, and play an important role in fostering society's response to global warming. Stronger insurance industry leadership on climate change issues will strengthen and accelerate our nation's transition to a clean energy future while helping to build a resilient and sustainable society.
Max Messervy is a Manager on the Insurance Program at Ceres. He engages with insurance regulators, companies and other key stakeholders around improving the industry's climate risk management strategies. Notably, he led the development of the 2014 Insurer Climate Risk Disclosure Survey report. Follow Max on twitter @MaxMesservy.
More information on Ceres' Insurance Program is available here.
Ceres' 2016 annual conference, Business Not as Usual: Sustainability in an Age of Disruption, will be held May 4-5 at the Park Plaza Hotel in Boston. Business leaders from electric utilities, transportation, food and the finance sectors will be on hand to share their strategies for accelerating action on issues related to clean energy, water scarcity, sustainable agriculture and food, human rights and more.
At the conference, Ceres will release a new update to its widely-used Sustainability Roadmap—a blueprint for sustainable corporations in the 21st century economy.
"Business disruption is happening across the economy, much of it related to sustainability pressures that have sparked the Paris Climate Agreement, low-carbon transportation and electric power, and existential questions about the future of oil. During two provocative days, the world's top sustainability leaders will discuss their responses to these mega trends and challenges that lie ahead. The urgency for bolder action will be a constant theme." - said Mindy Lubber, president of Ceres.
Please RSVP Meg Wilcox, (617) 247 -0700 x155, firstname.lastname@example.com or Sara Sciammacco, (617) 247-0700 x172, firstname.lastname@example.com, if you are an accredited journalist and would like to attend and cover the conference.
Click here to see the full two-day agenda.
Among key highlights:
8:00-9:00 AM May 4: BICEP Breakfast of Climate Champions U.S. EPA Administrator Gina McCarthy and Sen. Sheldon Whitehouse D-RI will headline a session about the current state of climate and energy policies in the United States and how companies can help bridge political divides and create change.
9:30-10:30 AM May 4: Plug In And Power Ahead—How The Utility And Auto Industries Can Help Each Other Achieve A Clean Energy Future: The electric power and auto industries share common challenges and opportunities in the drive toward cleaner technologies. Learn how the two sectors can work together to advance electric vehicles and a "greener grid." Jana Corey, Director, Electrification and Alternative Fuels, Customer Energy Solutions, Pacific Gas and Electric Company; Britta Gross, Director, Advanced Vehicle Commercialization Policy, General Motors; Brett Hauser, Chief Executive Officer, Greenlots; Peter Kelly-Detwiler, Principal at NorthBridge Energy
11:00 AM-12:15 PM May 4: Individual Investor Options For Sustainable Investment: Hear from leading investment practitioners about the growing sustainable investment opportunities for individual investors. Anders Ferguson, Founding Principal, Veris Wealth Partners; Lynne Ford, Executive Vice President, Calvert Distributors, Inc.; Karina Funk, Portfolio Manager and Head of Sustainable Investing Strategies, Brown Advisory; Steve Schueth, President and Chief Marketing Officer, First Affirmative Financial Network; Richard Zimmerman, President's Council, Ceres
11:00 AM-12:15 PM May 4: Corporate Renewable Energy: Getting Big Deals Done: This session explores how hundreds of companies are overcoming obstacles and working with renewable energy developers to get projects done. It will also highlight key public policies that are enabling projects to move forward and trends that are catalyzing or inhibiting investment. Mark Bescher, Manager, Government Relations and External Affairs, Unilever; Michele Chait, Director, E3; Debora Fillis Ryba, Senior Sustainability Manager, Nestlé Waters North America; Craig Gordon, Vice President of Sales & Marketing, Invenergy LLC; Marty Spitzer, Director, US Climate and Renewable Energy Policy, WWF
1:00-2:00 PM May 4: Breaking Bread—How Companies, Consumers And Investors Can Partner To Achieve Sustainable Food Supplies: Global food companies face increasing pressure from climate change labor concerns and heightened consumer demands for healthy, responsibly-produced foods. This panel explores food sector risks, trends and opportunities, as well as innovative ways to ensure a healthy, equitable and sustainable food system. John Church, Executive Vice President, Supply Chain, General Mills, Inc.; Marc Gunther, Journalist, Nonprofit Chronicles; Eric Katzman, Senior Research Analyst and Managing Director, Deutsche Bank; Danielle Nierenberg, President, Food Tank
9:00-10:30 AM May 5: C-Suites: The New Nexus of Corporate Sustainability: This session explores how corporate boards and business leaders are considering sustainability in their assessment of risk, reputation and revenue. Rebecca Henderson, John and Natty McArthur University Professor, Harvard University; Mehmood Khan, Vice Chairman and Chief Scientific Officer, PepsiCo; Harmit Singh, Executive Vice President and Chief Financial Officer, Levi Strauss & Co.; Deborah Spalding, Chief Investment Officer, Connecticut Office of the State Treasurer
1:00-2:00 PM: May 5: The State of the Global Oil Industry: Megatrends and Peak Demand Scenarios: This session will explore how the conventional wisdom on peak oil demand is changing and whether the global oil industry is adequately assessing the risks of an accelerating low-carbon future. Amy Myers Jaffe, Executive Director, Energy and Sustainability University of California, Davis; Candice Lo, Head of Greater China Expansion, Uber
About Ceres
Ceres is a nonprofit organization mobilizing many of the world's largest companies and investors to take stronger action on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of over 120 institutional investors with collective assets totaling more than $14 trillion. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for stronger climate and clan energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.]]>
Yesterday at the annual meeting of utility AES, shareholders had their first chance to vote on a resolution asking a U.S. based company to stress test its investments against the low carbon future that the Paris agreement will help bring about. The resolution received support from 42% of investors, the highest vote ever for a 2 degree stress testing resolution in the U.S. "Investors recognize that the Paris Agreement marked a turning point, and we need to know how companies are planning to succeed and create opportunities to provide clean energy in this new environment," said Pat Zerega of Mercy Investment Services, the filer of the resolution. "We're looking forward to working with AES on this important issue."
This proxy season, shareholder proposals on climate risk are being propelled by a powerful set of tailwinds: an historic climate accord, rapidly changing market forces, and unprecedented shareholder collaboration. Some of the most powerful voices in the fossil fuel industry, including the Saudi Oil Minister Ali Al-Naimi, are convinced the sector is facing an existential threat. The Secretary General of OPEC is advising its members to look for opportunities to diversify their economies and move away from reliance on oil revenues. In this context, one would assume that western energy companies would be taking aggressive steps to ensure their economic viability in a rapidly decarbonizing world. Now is the time for their boards and executives to chart a path forward for resilience to a future where temperature rise is limited to well below 2 degrees Celsius, as the rest of the world envisions.
Similar resolutions are slated for votes in the coming weeks at Noble Energy, Occidental Petroleum, Anadarko, First Energy, Chevron, ExxonMobil, and Southern Company. Investors around the world have pledged their support of carbon asset risk resolutions at these companies, and if the vote at AES is any indication, momentum is growing rapidly.
Learn more and pledge your support at http://www.ceres.org/issues/carbon-asset-risk/investor-support-of-portfolio-resilience-resolutions.]]>
Lubber, along with her colleagues at the nonprofit sustainability organization, Ceres, were instrumental in mobilizing unprecedented business and investor support for the adoption of the Paris Agreement in December. She was tapped to deliver formal remarks, as part of the UN signature ceremony luncheon, a copy of which can be found here.
"I commend those governments that are signing the extraordinary Agreement today, and all of the investors, companies and civil society leaders who are standing behind it," Lubber added. "The Agreement is a strong framework that will help shift trillions of dollars in investment from fossil fuels to clean energy in the coming decades."
"As we celebrate the signing of the Agreement, we must not forget that there is a tremendous need for scale, and a need for speed," said Lubber. "We must build on today's momentum and implement this Agreement as quickly as possible."
Lubber added, "To truly transform our economy, companies must disclose the risk of climate change to their bottom line, reduce their greenhouse gas emissions and increase their use of renewable energy. In addition, governments must put a price on carbon and enact strong national policies."
Lubber called on U.S. leaders to take two immediate steps: first, complete the formal processes to join the Paris Agreement so it can enter into force as soon as possible; and second, institute the domestic policies and measures needed to achieve the Agreement's goal of limiting warming to well below two degrees Celsius.
"The bottom line is that as our policy makers take action—companies and investors will be right there with them," said Lubber. "We are ready to redouble these efforts — as we must— to translate commitments into more and more action."
Ceres will continue to play a major role in organizing leadership support in the U.S., not only for implementing the Agreement, but also for strong climate and clean energy policies, including the Clean Power Plan, a key component of the nation's commitment under the agreement. The plan aims to reduce carbon pollution from American electric power plants by 30 percent by 2030.
Just this week, Ceres, along with a coalition of organizations, helped to bring 110 companies together on a statement to praise the Agreement and urge U.S. leaders to act quickly on the Clean Power Plan. On Tuesday, Ceres helped to mobilize 400 global investors representing $24 trillion in assets to back the agreement and urge world leaders to accede to it quickly.
"The Paris Agreement has unleashed an unprecedented opportunity for institutional investors worldwide – a powerful 'global green light' to shape tomorrow's low-carbon economy," said CalPERS CEO and Ceres board chair Anne Stausboll. "It sent an unmistakable signal to capital markets that climate change is serious business – and as investors we intend to fully capitalize on the new opportunities ahead."
A copy of Stausboll's full remarks can be found here.
In 2015, global investment in clean energy reached a new record of $329 billion. However, Lubber says, "it is still far short of the additional $1 trillion per year in clean energy investment needed to limit warming to below two degrees Celsius – a target dubbed by Ceres as the Clean Trillion."
On Thursday, Ceres also announced that investors representing $3.6 trillion in assets are supporting aggressive U.S. and Canadian action to reduce methane emissions from the oil and gas sector. This proposed action is one of the most effective ways to address climate change in the near-term.
About Ceres
Ceres is a non-profit organization that is mobilizing many of the world's largest investors and companies to take stronger action on climate change, water scarcity and other global sustainability challenges. Ceres directs the Investor Network on Climate Risk, a group of 120 institutional investors managing about $14 trillion assets focused on the business risks and opportunities of climate change. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for strong climate and clean energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.]]>
As attention turns to the Paris Agreement signing ceremony on Friday, leading global investors, representing $3.6 trillion in assets under management, released a statement of support today for U.S. and Canadian efforts to limit methane emissions from the oil and gas sector. This represents more than a doubling of support since July 2015.
"As widely diversified, long-term investors with holdings in the oil and gas industry, we share a vested interest in the industry's long-term success," says the statement, which was coordinated by CalSTRS, the Interfaith Center on Corporate Responsibility, NEI Investments, Ceres and Trillium Asset Management. "Curbing methane emissions from all sources in the oil and natural gas value-chain will help limit climate change, promote economic growth and provide regulatory clarity for industry and investors."
For the statement and complete list of signatories, see: www.ceres.org/methanestatement.
The U.S. and Canadian announcement, made on March 10, 2016, commits both nations to reduce oil and gas methane pollution by 40 to 45 percent over the next decade, and to put forth standards to achieve this goal.
"Managing methane emissions is a critical part of the challenge of addressing climate change. In keeping with our fiduciary duty, CalSTRS is supportive of the expected EPA regulation reforms for oil and gas operators as they provide an opportunity to mitigate risk, build trust and create long-term shareholder value," said CalSTRS Chief Executive Officer, Jack Ehnes.
Methane, the primary component of natural gas, is 86 times more potent as a greenhouse gas than carbon dioxide over a 20-year period. The oil and gas sector is the largest industrial source of methane emissions in the US, and methane emissions occur throughout the entire oil and gas system, from production wells to distribution lines. Data released by the Environmental Protection Agency earlier this month showed that actual methane emissions from the oil and gas industry are 34 percent higher than previous official estimates.
"Without strong action to reduce methane emissions, there is a real risk that natural gas will be seen as part of the problem, rather than as a bridge to a low-carbon future," said Andrew Logan, Director of the Oil & Gas Program at the sustainability advocacy nonprofit, Ceres. "We believe that the goal announced by the US and Canada is therefore in the long-term interest of the industry, as well as the U.S. economy as a whole."
"Common sense standards to reduce methane would be good for the climate, the energy sector and the broader economy," said Jonas D. Kron, Senior Vice President at Trillium Asset Management, LLC. "Evidence indicates that proven technologies that can reduce methane emissions by 40-45 percent at an average annual cost of less than one cent per thousand cubic feet of produced natural gas – a very cost effective price point. These technologies are commonsense ways to cut emissions and should be a central element to policy solutions for all countries looking to reduce their climate impact."
According to Rhodium Group's 2015 report on global methane emissions from oil and natural gas systems, wasted natural gas escaping into the atmosphere represents approximately $30 billion of lost revenue. Capturing and reusing the gas represents a significant economic opportunity.
"The Canadian and U.S. commitment to reduce methane emissions represents the kind of government ambition that investors are looking for and creates a template for other jurisdictions to follow," said Jamie Bonham, Manager, Extractives Research & Engagement, NEI Investments. "There is a clear benefit to companies and investors in harmonizing these goals, and we hope to see other countries follow the lead of Canada and the U.S. It will be good for the climate, good for industry and good for investment."
Natural gas production has been steadily rising over the past several years and that trend is expected to continue, driven in part by demand in the electric power industry as it shifts toward cleaner burning fuels. Continued growth will in part depend on ensuring that methane emissions are effectively kept in check.
"As a European based asset manager, we would like the EU to set a proactive goal to reduce emissions of oil and gas methane, a climate super-pollutant. Both the US and Canada have done this already by setting a 40-45% reduction goal to be backed by regulations. We also encourage the EU to implement similar policies and standards across Europe to help achieve greater global reductions of this potent GHG. Doing so builds on the global ambition to act on climate change, aligns methane reduction ambitions, creates a more level playing field, and also gives oil & gas companies a clear target to work towards." Sylvia van Waveren, Senior Engagement Specialist, RobecoSAM.
"Faith-based and values-driven investors are concerned about the long-term health of the companies in which we invest, but also about the wellbeing of communities and the natural systems that are so threatened by climate change," said Christina Herman, Program Director for Climate and Environment for the Interfaith Center on Corporate Responsibility. "The Paris agreement made clear the global mandate to prevent dangerous climate change, and reducing methane leakage is an important aspect of North America's contribution. Methane emissions represent a real risk to the ability of natural gas to serve as a cleaner fuel source in a global environment looking to reduce climate impacts. As responsible investors, we would welcome robust, effective regulation."
The California State Teachers' Retirement System, with a portfolio valued at $178.7 billion as of February 29, 2016, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. CalSTRS serves California's 896,000 public school educators and their families from the state's 1,700 school districts, county offices of education and community college districts. For more information, visit www.calstrs.com or follow on Twitter @CalSTRS.
Ceres is a non-profit organization that is mobilizing many of the world's largest investors and companies to take stronger action on climate change, water scarcity and other global sustainability challenges. Ceres directs the Investor Network on Climate Risk, a group of 120 institutional investors managing about $14 trillion assets focused on the business risks and opportunities of climate change. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for strong climate and clean energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
The Interfaith Center on Corporate Responsibility (ICCR), in its 45th year, is the pioneer coalition of shareholder advocates who view the management of their investments as a catalyst for change. Its 300 member organizations comprise faith communities, socially responsible asset managers, unions, pensions, NGOs and academic institutions representing combined assets of over $100 billion with a record of corporate engagement that has demonstrated influence on corporate policies that further justice and sustainability. ICCR members engage hundreds of corporations annually in an effort to promote greater corporate accountability on questions such as climate change, corporate water stewardship, sustainable food production, human trafficking and slavery in global supply chains and increased access to both financial and health care services for communities in need. For more information, visit www.iccr.org.
NEI Investments is a mutual fund company that is committed to making excellent, independent portfolio managers accessible to Canadian retail investors. With approximately C$6.0 billion in assets under management (AUM), NEI Investments' approach to investing incorporates the thesis that companies integrating best environmental, social and governance (ESG) practices into their strategy and operations will build long-term sustainable value for all stakeholders, and provide higher risk-adjusted returns to shareholders. For more information, visit www.neiinvestments.com.
Trillium Asset Management is an investment management firm with over $2 billion in assets under management. Trillium integrates Environmental, Social, and Governance (ESG) factors into the investment process as a way to seek to identify companies better positioned to deliver strong, long-term performance. Founded in 1982, Trillium has a long history of managing equity and fixed income portfolios for individuals, foundations, endowments, religious organizations, and other non-profits. A leader in shareholder advocacy and public policy work, Trillium leverages the power of stock ownership to promote social and environmental change while providing both impact and performance to our investors. For more information, visit www.trilliuminvest.com.


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SVA NEC develops 0.8-inch color OLED panel
Posted: 17 Dec 2004 Print Version
Keywords:shanghai sva nec liquid crystal display oled[Summary of tips] BROKEN_TABLE_ HIDDEN_END -->Shanghai SVA NEC Liquid Crystal Display Co. Ltd recently made breakthrough from its R&D of Organic LED Material & Monitor. The section, which is the forefront of SVA NEC's R&D center of electronics flat-panel technology, developed an 0.8-inch color OLED panel that displays moving pictures. The compa......
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$ 89.00
Novela Ela Light Blue Organic crib comforter - The Elegant damask design in light blue and pink.
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There's no feeling like stepping into a warm car and we will get you there. We'll install your remote car starter and with three installation options, our Autotechs will have you back on the road in no time.
Bring everything in and we'll take care of it.
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Buy the Standard Install on BestBuy.com.
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*Hardware not included. A materials charge of $5 per vehicle will be assessed at time of installation. Standard installation does not include any vehicle-specific parts or accessories (for example, relays, etc.). For an alarm, keyless entry or remote start installation, these parts typically cost $10–$300 but will vary based upon your specific vehicle and the alarm and keyless entry system you are having installed. Additional charges for vehicle-specific parts and any non-standard installation will be assessed upon completion of the installation. If you'd like more detailed information regarding installation on your specific vehicle, find a store with an installation center and speak directly with a Geek Squad Autotech. Your Geek Squad Autotech will provide an estimate to you prior to performing work that requires an additional charge and any additional parts. See terms and conditions for further details.
What is an immobilizer interface?So the short version is it prevents your car from being driven unless the key is in the ignition. So if you start your car and get in, as soon as you press the break to shift into gear it will turn off the car. Speak with an Autotech for more details and to determine if you will need to purchase and have one installed.
Can Geek Squad conceal any wires or connections?Yes, you won't even know that we were there.
Does this installation include an alarm?It depends on the keyless system you're using. Speak with an Autotech about your specifc vehicle and the best keyless system to meet your needs.
Can I have multiple remotes for one car?You can buy as many as you want, though you might want to think about whom you hand them out to.
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To initiate a chat session with a Geek Squad Agent, you will need to have a supported version of Windows.
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Southampton aim to offload Dani Osvaldo this week back to Italy.
Transfer-listed after a bust-up with Saints teammate Jose Fonte, Osvaldo has been linked with West Ham United.
But the Telegraph says he is expected to return to Serie A before the end of the transfer window with Inter Milan, Fiorentina and Juventus all reported to be interested in moving for the former Roma striker.
For breaking stories and all the great banter like us on Facebook: facebook.com/tribalfootball


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Reds' Homers Add To Peavy's Struggles; Cincy Tops Giants 7-4Brandon Phillips, Eugenio Suarez and Zack Cozart homered in a five-run first inning, and the Cincinnati Reds beat Jake Peavy for the first time in a 7-4 win over the San Francisco Giants on Wednesday.
Giants Rally Late To Defeat RedsSan Francisco Giants rallied for two runs in the eighth inning against the Cincinnati Reds for a 3-1 victory Tuesday night.
Giants Rally, Defeat Reds In Cueto's Return To CincyThe San Francisco Giants rallied against Cincinnati Red's historically bad bullpen, winning 9-6 Monday night.
30 Players: Reds' Eugenio Suarez Looks To Prove 2015 Was No FlukeThe Reds young third baseman looks to continue to improve upon a surprise 2015 season.
Visitor's Guide To MLB All-Star WeekendA practical visitor guide for MLB All-Star Weekend, along with recommendations for lodging, dining and sightseeing in Cincinnati.
30 Players: Iglesias Could Arrive Sooner Than Expected As Reds StarterThis spring, Reds manager Bryan Price became one of the first skippers to officially lay out his entire rotation, even though there were expected to be plenty of questions after Johnny Cueto and Mike Leake. And to the surprise of many, Cuban signee Raisel Iglesias, despite only pitching in the Arizona Fall League
5 Times MLB Game Protests Have Been UpheldWith the San Francisco Giants being the first team since 1986 to successfully protest a game, we decided to take a look back at some of the past protested games upheld by the MLB. Here's five times MLB game protests have been upheld:
5 MLB Players Who Could Make It In The WWE
National League Mid-Season Team MVPsSometimes a team's best players don't make the All-Star team. Here are the National League's mid-season team MVPs.
6 MLB All-Stars That You May Not KnowHere are 6 MLB All-Stars that you may not know.
Best Minor League Baseball Stadiums To Catch A GameIf you're in the mood for a road trip, or simply want to come out to support your local team, make your next stop a minor league baseball game at one of these fan favorite stadiums.
Reds Shut Out Giants As June Swoon ContinuesHomer Bailey made a strong bid for yet another no-hitter, shutting down San Francisco until Buster Posey's two-out single in the 7th inning, pitching the Reds past the Giants 4-0 Sunday.


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A Comet Passes
With a few minutes gone in the first half of the Gophers women's basketball game against Ohio State last Thursday, my eight-year-old son Henry turned from the TV and asked me if I thought Lindsay Whalen could beat Kevin Garnett in a game of one-on-one.
I scoffed. I said Lindsay is great, but that K.G. is older, bigger, and stronger, and that he'd swat her shot every time. He disagreed, citing her quickness and her ability to glide past bigger players. He was starting to convince me. He said if it was a game of make-it-take-it, she's got that deadly three, so who knows? "Man," he said. "I'd pay a million dollars to see that."
A minute later, Whalen was down on the Value City arena court in Columbus, writhing with two broken bones in her right hand, her collegiate career probably finished. Some probably thought coach Pam Borton was exaggerating when she said the next day, "I think this is devastating for everyone involved in the program, from the fans to the community to the state of Minnesota." Certainly it's not true of WCCO-AM's Dark Star, who called Whalen's departure "a relief, because now they [the women's basketball team] can go back to page nine [of the sports section] where they belong."
His loss. I've been at every home game this season and I'll keep going, not only because I've grown fond of the team, but because I'd rather watch Lindsay Whalen sit on the bench in street clothes rooting for her teammates with a broken hand than almost any other show in town.
"You just want to tell people to see her now, because she's gonna be gone," is how my brother Jay reacted to seeing her in person for the first time during the Michigan game on New Year's Day. We'd been sitting in Williams Arena, talking about our favorite memories of the Barn and the best games and players (all male) we'd seen there. Whalen lit up the Wolverines in the first half, including five straight three-pointers, and that's when I trotted out the word I always use whenever I try to explain the appeal of the Replacements to anyone who never had the pleasure: a comet.
You knew it wasn't going to last. You knew Whalen would go on to a professional career and other successes, but it was plain to anyone who saw her play over her first three years at the U that this winter was a moment to be seized and savored. In some sports media circles, there was talk that the women's basketball team had become "trendy," the "in" thing this season, or proof positive that women's sports had finally arrived. What a pile of horseshit. True basketball fans went to see Whalen for the same reason people have been turning turnstiles since Abe Saperstein was selling tickets--they like to go to the magic show.
There is no other word but "magic" for what Whalen brought to Williams, or the game. And if this reads like a premature eulogy, sorry, but that's how it feels at the moment. It wasn't supposed to be written until next month, when the Gophers start their run in the NCAA tournament, or whenever the end of the season came. I hope Whalen fights back from this injury to suit up in that lucky number 13 jersey one more time, but just in case she's gone for good, I need a couple of paragraphs to say, "Thanks for the memories" and think about what I'll miss most.
I'll miss those eyes, the ones that went from placid to laughing to steely--the same competitive glare that made Kevin McHale say about Larry Bird, "He has the eyes of an assassin." I'll miss the sight of her bringing the ball up on the fast break, her jaw jutting out and her body gearing up for contact or some mind-blowing crossover move. I'll miss her no-look passes, her behind-the-back passes, her hang time, and the combination of nonchalance and fierce desire she played with. I'll miss that extra gear she had, the one that made her blow through the lane as if she'd just flicked a switch, the one that prompted Fox color commentator Andrea Lloyd Curry to call her, perfectly, a "hummingbird."
Probably the thing I'll miss most is how she'd start every game: After each Gopher is announced at Williams, they throw a balled-up T-shirt into the crowd. Whalen always did so with deadpan cool, watching to see how far into the crowd it made it. Then her face would explode into a fit of passion as she did a huge bunny hop into the huddle. Surrounded by her grinning, throbbing teammates and coaches, she was the embodiment of why we're drawn to watching team sports, why we dream of being on teams of any kind, and of one reason why big wins happen, according to LSU coach Dale Brown: "We dared to love each other."
I'll also remember seeing her alone. The first time I saw Whalen this season was a couple of hours before the first regular season game. I walked into Williams and saw a lone figure shooting baskets on the far end of the court. It was Whalen, and I stopped and started counting. She made 12 in a row without a miss--most barely rippled the net--until she stopped to sign autographs for two girls. Alone like that, in her element with just her and the ball and the basket, Whalen looked like some sort of deer running wild.
The last time I saw her on that court was February 8. The Gophers and then fifth-ranked Penn State were tied with 10 minutes to go. Sitting on press row, I turned to Pat Donnelly, the AP reporter who's been covering the Gophers this season, and told him we were going to find out a lot about the team in the next 10 minutes.
On cue, Whalen took over, zipping passes and doing spin moves that nobody in the Barn had seen from her before. She was creating, making it up on the spot, feeling it, and in one particularly unforgettable sequence, she stole the ball at mid-court and finger-rolled the ball in with a pizza-chef's panache. Whalen finished with 23 points, and the Gophers blew out Penn State by 19.
After the game and postgame interviews, I saw Whalen coming out of the media room. The last time I'd seen her, after a bitter loss to Michigan State, my son gave her a "good luck" drawing of herself. She smiled sincerely and thanked him, but she was in no mood for glad-handing. This time, with Penn State vanquished, all was right with the world again, and anything and everything seemed possible. She reached out her strong right shooting hand and clasped mine. "Hey, Bud," she said, her face full of a winner's glow.
Five days later that hand was in a cast and that face was on the front page of the Star Tribune, hanging at a press conference announcing the probable end of an era. It was Valentine's Day, but she looked heartbroken. She's not the only one.
Jim Walsh can be reached at [email protected] or 612.372.3775.
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NCI Dictionary of Cancer Terms
The NCI Dictionary of Cancer Terms features 7,926 terms related to cancer and medicine.
Browse the dictionary by selecting a letter of the alphabet or by entering a cancer-related word or phrase in the search box.
- TriCor
- listen (TRY-kor)
- A drug used to treat high levels of cholesterol and triglycerides in the blood. TriCor is being studied in the treatment of advanced cancers in young patients and in the treatment of other conditions. It is a type of antilipidemic agent. Also called fenofibrate and Lofibra.