This seems pretty accurate. Sad!
View on Instagram http://ift.tt/2oFIyFX
This seems pretty accurate. Sad!
View on Instagram http://ift.tt/2oFIyFX
Most of us usually don’t use wealth and climate change in the same sentence. Jigar Shah and the Carbon War Room’s Ann Davlin were at SXSWECO yesterday to convince us things are changing. Their session,”Creating Climate Wealth,” showcased how individuals and businesses can capitalize on the climate chaos.
Davlin, who worked with Al Gore and at The Pentagon, started the discussion by reminding the audience that our society, even business, has had climate opportunities teed up before.
“This really isn’t all uncharted territory,” said Davlin. “A lot of today’s climate wealth environment was established by the success of the Carter administration.”
Most of us can associate the administration with solar panels on the White House, but Davlin highlighted the other policy and infrastructure decisions which helped set up many of the standards still used today.
“Everything from energy efficiency and vehicle emissions to power purchase agreements (PPAs) and the adoption of the Renewable Portfolio Standard (RPS), has some connectivity to the efforts of lawmakers decades ago,” said Davlin.
“All the pieces are coming together, and we’re at a point where we can move forward. Carter won bi-partisan support for favorable policies and it lead to job creation and clean energy momentum.”
Davlin cited the residential PACE market, aimed at funding energy improvements, as another engine of growth and carbon reduction. She urged the group to think about the balance between an economic and ecologic argument.
“The capital is there, it’s more about how do we go in and approach a particular investor segment,” said Davlin. “We need to think about describing the impact in either financial terms or climate terms,” she added.
Shah opened up with a dig at our obsession with technology, questioning the value of the next new app.
“We have this weird fascination about technology,” said Shah. “The reality is that new technology is not fascinating in our industry.”
Instead, it’s about “infrastructure.” Shah noted that even with a seemingly unending technology cycle, energy costs for the average American family have increased about $4000 per year per family.
“Nobody tells they’re mom that I work in infrastructure,” he joked. But it’s easier to understand the notion of infrastructure when he describes it in the context of how the solar industry built out its own processes and practices. He mentioned how early power purchase agreements (PPAs) drove demand and led to more stable and innovative financing models that have continued to spur along the solar industry.
The conversation also addressed the opportunities in the electric vehicle (EV) industry and more broadly, the transportation industry.
“So what’s the climate wealth strategy for getting people in EVs,” asked Shah.
He mentioned recent data from Triple AAA that shows U.S car owners spend about $900 per month to own a vehicle. Besides more predictable maintenance costs for EVs, Shah thinks transportation companies and manufacturers will continue to move towards a cost per mile model.
“What you’ll see is an increase in “cost-per-mile” entrepreneurs as more time transfers to that model,” he said. “Then the question is what do you do with all the wasted space, like unused parking spots and emptier garages.”
The parking spot problem is in the industry’s headlights, sometimes referred to as one of the last mile problems in transportation. He was asked about what cities can do address it and some of the other planning challenges.
“Basically, 1000 entrepreneurs need to be knocking on doors and getting contracts, and then those need to get financed” he said.
Once autonomous vehicles are factored in, things get more interesting. Both panelists said the insurance industry is already adapting to that, preparing for the increasing loads of data from vehicle-based systems. They imagined a scenario that’s not so different from what healthcare providers might glean from health trackers to adjust our premiums.
Davlin also mentioned how microgrids, small-scale stations that can operate independently, are getting pushback from municipalities. Drawing from her pitches to Wall Street and private equity firms, Davlin reinforced how assumptions can’t be made that stakeholders understand the bigger picture. She described some scenarios where energy efficiency funding had to be reframed around a more resilient and risk-based approach.
Shah was then asked about the value proposition for solar, and how it plays into more climate opportunities.
“Solar is now an $80 billion a year industry with rooftop systems being added about every three to four minutes,” said Shah. “The industry needs to take responsibility for creating the next model for utilities.”
The panelists were also asked what city officials could do to spark more business-driven climate strategies.
Shah singled out transportation and waste management as two of the biggest pieces looming for cities. To magnify the cost reduction opportunity, he said the the average U.S. city transports its waste roughly 350 miles for disposal.
He also used the recent food waste ban in Massachusetts to show how waste reduction can create growth. Because of that policy, says Shah, 1200 anaerobic digesters will be built over the next five years, which will create jobs and reduce transportation costs..
Waste water management is also a part of the portfolio, especially with many treatment facilities across the U.S. nearing capacity. Things like pre-treatment, desalination, and other filtering applications are spurring the water management sector.
“A lot of these solutions have two year payback periods,” said Shah. “At that point, you’re basically forcing people to save money.”
As the session closed, a Nike representative in the audience asked the panelists to share specifics on the top things corporations could do to impact these climate wealth strategies. Davlin cited what Nike itself was doing as a member of the Sustainable Leather Working Group.
“Nike is actually dictating how the life of an animal is managed, everything from how it is fed, to how it is slaughtered,” said Davlin.
“What that means is more job creation, and a more visible and sustainable supply chain, ” she added,
Shah jumped in on the supply chain piece, saying the “greening of supply chains” is the toughest challenge for multinational corporations.
“You have to change the contracts and configure them to reward your best suppliers,” he said. Part of the challenge is that adjustments to supplier agreements can impact short-term profits. But Shah urged companies to look past contracts and get more creative to drive growth, saying a company’s strategic partners can be rewarded in many ways.
“There’s still constraints to being driven through the Chief Sustainability Officer (CSO). But you have to make some financial commitments before any long-term strategy can really materialize,”said Shah
For starters, by most accounts, my spouse and I are kind of extreme when it comes to simplifying. My wife describes the (main) set of circumstances that sparked our sustainability push more eloquently than me, but roughly speaking, here’s the short version.
When we had our first child, it was right after Katrina and with my wife being from New Orleans, it hit home on many fronts. The impacts of climate, people in need, and our kids’ futures all seemed bizarrely exposed. It was around that time, we both decided we had grown tired of hearing, “Don’t worry, someone else will take care of it!”
The problem was that we weren’t meeting a lot of those “other people,” the ones that were deftly operating behind the scenes. She basically led the charge at that point and moved beyond the rhetoric. Sometimes,we collectively decided, it has to be you. And that meant it had to be us.
We ended up in Houston a few years later for work, just in time to catch the arrival of another monumental storm, Hurricane Ike. And boy did that shift things. With Katrina still in the shadows, we were pounded in Downtown Houston and left without power for almost two days. Our daughter had also just been born, so here we were with two babies, no power, and stranded.
So there’s some context. And it’s not just about climate change, or being green. The latter is a byproduct of being acutely aware of our surroundings. We challenged ourselves to question things more —at every turn. Why did this happen? How do we keep it from happening again? I can’t explain why we didn’t change things sooner. We just realized that things in our world, our personal world, had to change. Over the last five years, here’s a few things we’ve done.
Consumption is the centerpiece of how we think things through. We both come from families that love to collect things, so it’s a constant challenge. Estate sales signs in older neighborhoods are our addiction. What we had to agree on was a simple set of rules.
We decided on “immediate utility.” Just what it sounds like. If we bought something, it had to be hung, worn, toted, or played with in an increasingly short time frame. Use it or lose it. Or in our case, take it back to Goodwill.
I was reminded of the term itself from the founder of Opportunity Green, Karen Solomon. “Buy stuff that’ll last,” she told me after a meeting in Austin.
Start with assessing your usage. How much water and electricity do you use every month? And fortunately, it’s become much easier to see that information. Utilities, water districts, and municipalities are awash in data. The challenge is getting you and me to act on it. Beyond common sense and choosing fundamental options — Energy Star ratings or tips from your local utility — it’s part education and part discipline.
Living through a drought in Central Texas and summers in Dallas taught us early on that we might not want to be dependent on a lot of watering. Soon after, my wife blew past “quick study” status on native landscaping and voila!, our water consumption plummeted. It wasn’t all because of our lawns, but it was a big piece. That decrease in usage was one of those light-bulb moments. If this provided such an impact, what else could we do?
And don’t let anyone tell you that competition doesn’t have anything to do with it. Competition is word-of-mouth’s favorite cousin. We saw that the first time we went over to a friend’s house and mentioned our water bill (below). I’m not sure they believed us, but the next time we saw them, they mentioned they had no idea they were using so much water.
One other example that opens peoples’ eyes has to do with electricity. My wife took a weekend class a few years back that was focused on solar, mostly residential. A subset of the curriculum addressed “vampire power,” or the standby mode of particular devices. I haven’t compiled hard data from month-to-month, but we saw a pretty substantial spike after we starting using more power strips and aggressively turning everything off. Yes, that means unplugging the microwave, too. I told you we were extreme.
After a few months, it became habitual, and more so as we continued to see what was attainable. Dovetailing off that, we looked at all of our appliances. After seeing how much power a refrigerator eats up, we attacked that first. The key was to take a long-term view, especially since a few of our adjustments would require replacement costs. Wefound a fridge that was super-efficient, without an ice-maker, and with the capability to turn off the freezer as needed. The point isn’t to tell you to go out and buy new appliances. What’s important is putting your usage under a microscope.
How often did we really make those ice-tray popsicles ? Not very often. Why not head down to the local shop and support them instead? That’s what we did. We also got rid of our dryer and used the undervalued, often maligned, clothesline. Besides huge energy savings, there’s a certain vintage, if not ritualistic quality hanging out clothes provides. No room for a clothesline you say? Target has small drying stands for less than $15. Get a few.
Keeping the outdoor theme intact, we also bought a Sun Oven. That was an easy transition, considering we had recently yanked out our old range, which of course, had an oven. That left us with no oven inside, as we opted for an induction cook-top. Soon we had become “trial-and error” Sun Oven cookers. And it wasn’t that hard. We quickly learned which veggies and grains were best, and soon were wedging all sorts of other things inside the hard foiled edges of our new friend.
There was certain type of win we felt everyone time we got back to the house and pulled something out of the yard that was ready-to-eat, and didn’t require the grid. Now granted,our Austin house is about 1100 sq. ft, but in cooler months, all the things I mentioned helped us consistently hover around $20 for a full month’s power.
There’s also some less tangible, lifestyle choices we’ve made. The biggest ones have been buying local and moving to the second-hand market. It’s amazing, and a bit horrifying, when you try to find stuff made in the States, much less regionally. Buying second-hand became not only a quest for quality, but an economic vote for companies that had some backyard skin in the game. And if you have kids, well, that’s the multiplier.
It was absurd to buy new swim shirts for any kid under the height markings on our giraffe’s shoulder. They outgrow those things too fast. Besides, our local Goodwill creates jobs in the community — a win for everyone. It was also interesting to see how our thrifting tendencies drove our mindset in other areas.
By paying attention to what lasted,we developed an innate sense of categorization. We’ve become adept at classifying things that should always be found in “gently used” environments. No to mention, we got smarter, we saved money, and we gave back. Those are things everybody can relate to. So create your own playbook. And grow from it.
We posted this first on Medium.