CLIMATE CHANGE: THE CHALLENGE OF REDUCING SCOPE 3 EMISSIONS;
“THEY HAVE A SOLUTION”
“The Soros fund, BlackRock and Accel continue to move forward despite the obstacles in search of solutions that simplify the path.”
THE CURRENT EVENTS
Only a paltry 5% of U.S. companies report their Scope 3 greenhouse gas emissions.
Unlike those directly related to a company’s operations or its energy use, these emissions are the type that occur along the supply chain to the company, and then by customers who use what it produces.
“Scope 3 is a large part of all variable and aggregate greenhouse gas emissions.”
ISSUES
The lack of data poses significant obstacles for investment firms seeking to reduce emissions from their portfolio holdings.
Few companies are as aggressive as Soros Fund Management in controlling emissions intensity.
The absence of Scope 3 information means that the company cannot fully convey the impact on the real economy of the companies in which it invests.
The second annual “Climate Action Progress” report.
It indicates that for example SFM has reduced the intensity of financed Scope 1 and Scope 2 emissions by approximately 53% since 2019.
It has done so by taking steps such as restricting investment in fossil fuel-intensive companies, “shifting its investments into climate solutions, and partnering with companies in high-emitting sectors to accelerate their transition to clean energy.”
TO SOLVE
But when available Scope 3 data is included, the drop in SFM emissions is closer to 13%.
“While we appear to be on track to meet our emissions reduction goals, we still have a lot of work to do,” says Hilary Irby, the company’s director of impact strategy.
EXAMINING INNOVATIONS
These companies are looking for real facts that indicate with statistics and testimonials the reduction in real time, at this point the company closest to the solutions is BalGreen.
An American company that dedicated its research to simple and transparent solutions.
BalGreen is working on the path of logical solutions and not complex offers that no one understands.
On a practical level, this means incorporating emissions reduction targets “into the decision-making processes of our portfolio managers.”
CLOSE BACKGROUND
“In 2022, we are introducing a custom tool that allows money managers to track the intensity of their portfolio compared to their goal.”
The ultimate goal of SFM, BlackRock, Amazon and Accel is to achieve net-zero portfolio emissions across Scope 1, 2 and 3 emissions and all greenhouse gasses, not just carbon dioxide, by 2040.
RESEARCHING SOLUTIONS
To do this, they have been working together on monitoring with this American firm, which has been collecting facts and testimonies where they have already executed comprehensive programs in the 3 scopes.
Reaching many populations inundated with energy supplies and without job options.
Training citizens and providing them with direct jobs in the conservation, construction and maintenance of the planet, within the parameters of the established systems.
These solutions start from the peripheries to the urban centers, generating complementarity in the solutions, integrating:
¹. DIRECT COMPENSATIONS AND EFFICIENCY CONSULTING:
They are essential to provide liquidity to the governments and companies involved.
In addition to a short, medium and long-term Comprehensive Efficiency consulting plan.
The objective of which is to comply with international net-zero emissions requirements.
². THE TRAINING:
They allow for a qualified workforce, which gives one more point of guarantee to direct investments to renewable share companies in activity and wish to grow in generation volume, which is consequently necessary for the reduction of compensatory emissions.
³. INTEGRALITY:
Of the incubated solutions, they have shown that reducing emissions from small consumers reduces Scope 3 why cities have low variable emissions.
⁴. PUT IN VALUE:
The training is required for installations in homes that directly feed the needs of cities and companies that began their energy transition processes by placing solar panels.
This plan has enormous scalability and simplicity in its implementation.
⁵. ELECTROMOBILITY:
In this way, with qualified labor, emissions are reduced in daily traffic and healthier air in the largest cities.
This happens thanks to the engine conversions certified by the automotive companies, which guarantee the brand’s parameter values and monitor year after year the mandatory Check necessary to circulate with Up Cycling vehicles.
⁶. GUARANTEED PLANNING:
This company strategically has in its possession spaces with developments completed and underway, to generate energy for electric charging stations, but multi-services.
This requires simplicity, the space is self-generating and the chargers are guaranteed by another company that is a leader in the ChargePoint sector.
But ceding control of the service to the oil companies at their distribution sites, following sustainable parameters in each area.
This reduces not only the delivery of energy to the pass, but accumulates future reduced emissions which may be one of the key tools these companies are looking for.
⁷. SUSTAINABILITY OF HABITS:
It is vital so that all the processes carried out previously have their own validity.
EVERYONE WINS!
Automotive insurance services also gain with a new range of electrical consumers, who through the training carried out are covered by these new technicians trained in the required maintenance and repairs.
CLEAN ACTIONS
The firms that oversee money for members of the Soros family and the Open Society Foundations have long been on the path of environmental commitment.
They have decided to do the right thing.
“Green Finance gives many x of profits, this is the path of logical balance.”
We are talking about a network that has awarded thousands of grants to groups that promote democracy and human rights.
SFM’s portfolio is widely invested in public equity and debt markets, as well as other assets such as currencies and sovereign bonds.
DIVERSIFIED OPTIONS
SFM’s differentiated approach received increased attention last year as environmental, social and governance investing became a target for right-wing politicians and the fossil fuel industry lobby.
Some have taken advantage of the ambiguity around the term ESG to oppose environmental and social progress.
But both companies, as well as asset managers, must counter these attacks by demonstrating where they add value to their approach and discontinuing the efforts that multiply daily in the supply of greenwashing.
DATA SCIENCE
Determining how much pollution the company is responsible for is not easy because standard methodologies do not yet exist for calculating emissions from some parts of the SFM portfolio.
But corporate commitment is a big part of the strategy to reach net zero.
Decarbonization is “the north star and our proxy voting policies are aligned with this approach,” they said of SFM.
Meanwhile BalGreen promotes a starting point
Which is to help companies understand the business risks and opportunities they face in the transition to a low-carbon economy.
“The focus of investment funds is on real-world outcomes and the importance of these issues will only increase in the coming years.”
COMMITMENT AND TESTIMONIALS
Through its engagement, SFM successfully pushed to improve corporate climate reporting and transition planning for companies such as Eco Animal Health Group Plc and Access Intelligence Plc, according to the company’s climate progress report.
FAR FROM GREENWASHING: IT IS THE SCRATCH
Investing directly in climate solutions has become more challenging, largely because “the valuations of many private market investments are very high,” Irby said.
“We have found fewer compelling investments in older environmental companies, which do not meet our standard for climate impact and prudent investment.”
THE NEW PATH OF FINANCE
Here opens up a new range of possibilities for real financial portfolios made up of tangible solutions.
Which confirm that: “By taking care of the planet you make money”.
RENEWING HOPES
With BalGreen solutions, these Hedge Funds have allocated $1.3 billion of the total $25 billion (as is the case of SFM). That they assigned climate solutions to these solutions at the end of last year.
While investing in climate solutions is an important part of SFM’s approach, the firm anticipates that by 2030 with this model they will achieve their objectives.
SYNTHESIS
SFM, BlackRock and Accel are focusing on the decarbonization of high-emitting industries that are central to balgreen.org’s solutions for the transition to a low-carbon economy, introducing innovations step by step.
THE SOLUTION IN YOUR HANDS: IN SIMPLE CLICKS
The large funds mentioned coincide with the BalGreen Efficiency System, which consists of Immediate Climate Offsets for existing renewable sources with delivery to the grid and Comprehensive Consulting for the reduction and mitigation of polluting emissions.
Unified Expression
“We believe both are needed to achieve our goals,” SFM quoted balgreen.org solutions as saying.
“In some places, those things marry together, which is an incredible victory.”
SUSTAINABLE FINANCES NOW!
Wall Street giants like BlackRock Inc. have spent much of the last few years pledging their allegiance to sustainability.
But during that same time, the numbers have shown that these giants remain the main financiers of the global warming industries.
Now, this dissonance can also apply to the deteriorating health of life on Earth.
The world’s largest asset managers consistently vote against proposals aimed at protecting biodiversity, as one of the fastest-growing ESG corners fails at shareholder meetings.
Fund managers overseeing sustainability and ESG strategies at companies including Vanguard Group Inc., State Street Global Advisors and BlackRock failed to support biodiversity proposals 80% to 100% of the time, according to a new report.
CONCERN SOLVED
For global companies recently concerned about their impact on plants and animals, an influential standards-setting body has banned one of the easiest remedies: biodiversity offsets.
Triggered by the defamation of sustainability by the unserious intangible reforestation projects.
The latest round of interest in BalGreen’s Integral incorporation includes: Tokio Marine Holdings Inc., Grupo Catalana Occidente, Lloyd’s of London, MS&AD Insurance Group Holdings Inc. and Sompo Holdings Inc.
REGULATED GREEN MARKETS
The UK’s Financial Conduct Authority is scrutinizing the sustainable lending market amid concerns that environmental targets are too easy (15% for Unilever Plc in 2022), this is the percentage increase in emissions from “direct use of consumer (HFC propellants)”, a Scope 3 category that includes hairspray, body spray and deodorants.
QUALIFIED OPINIONS
Behind the cloud of Greenwashing “It has become a kind of hidden emissions problem.” John Ridd
CONCLUSION:
For that BALGREEN maintains its phrase “simple and transparent always works.”
AUTHOR:
DIEGO BALVERDE
ECONOMIST
EUROPEAN CENTRAL BANK & SENIOR ADVISOR AT GLG
