Governments, investors, and watchdog NGOs are stepping up their efforts to identify companies that are leaders or laggards in the global effort to address climate issues. While most of the effort has been to highlight and publicize those that have reduced or supported reductions in greenhouse gas emissions significantly, there is a growing sense that shame can work, too. Legal & General Investment Management (LGIM), an investment firm that invests in companies that actively address climate matters, puts out annual rankings. In their 2019 list, they voted to divest five firms from their Future World Fund due to unsatisfactory results, including ExxonMobil. Removal may occur for a variety of reasons, such as not meeting climate goals, governance, and lobbying efforts.
Such removals and additions to the list are important as investors use the list as a guide to making investment decisions. Two companies removed from the Future World Fund in 2018 were reinstated in 2019.
In April 2019, for the first time ever, renewables surpassed coal in the US power mix. A combination of the large growth in new wind and solar farms boosting renewable energy output and some coal plants were idled for routine spring maintenance caused this to occur. Hydroelectric dams, solar farms, and wind turbines generated about 68 million megawatt-hours of power that month, exceeding the 60 million that coal produced that month, according to the Energy Information Administration. This is both the most clean power ever produced in the US and the least amount of coal combusted in years.
These trends highlight the growing support for renewable power in the form of incentives and tax rebates by governments and the large number of utilities now encouraging this, too, to lessen their burden. In addition, the cost of building new renewable solar and wind farms has dropped markedly compared to the cost of building new coal-fired plants. And finally, with some exceptions cheap and plentiful natural gas are causing many plants to shift from coal to gas. If these trends continue, Despite the current US Administration supporting the coal industry by gutting environmental rules, other governments and investors are moving away from coal to renewables. It should be noted that April is commonly a month when many coal-fired power plants are shut down for maintenance. This summer, coal combustion at peaker plants should raise the level of coal combustion in the US, putting coal back “ahead” of renewables in terms of electric generation. But the longer-term trends are certainly that government incentives and investor information are causing the long-term growth of renewable power.
CCES has the experts to help your company understand how climate and energy conservation programs can result in many significant financial benefits. We can help you diversify your energy supply, find incentives with direct benefits for you, and find ways to reduce costs. Contact us today at karell@CCESworld.com or at 914-584-6720.