IRA Bill: Initial comments

The Inflation Reduction Act (IRA) was signed in law by President Biden on 16 August 2022 after House Democrats approved the biggest-ever federal investment against climate change with a 220 to 207 vote. The package targets USD 369bn of spending on energy and climate change. To illustrate the monumental size, some are pointing out the spending will be four times more than Obama’s Recovery Act of 2009 for climate initiatives. The impact will be far-reaching – even pushing some technologies, in our view, past tipping points. The legislation aims to cut emissions by at least 40% by 2030.

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The ESG difference in small cap investments

There is a danger that the sustainable investment world focuses too much attention on large companies. There is a rationale to do so, as they may be responsible for larger footprints and greater impacts, but this misses the significant portion of global GDP in the hands of small to medium companies, and the capacity for these companies to respond to environmental and social issues.

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Proxy voting season

We are in the middle of the AGM season for most markets and seeing increasing ballots related to environmental and social issues. AGMs represent a very valuable opportunity for investors to challenge the board of directors, as well as use their votes to vote against weak governance structures. As the sustainable investment focus continues to grow, stewardship has become more and more important.

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Climate Change: What we are doing to make a positive impact

The Sixth Assessment Report on climate change from the Intergovernmental Panel on Climate Change (IPCC), the third part of which was published earlier this month, has not been an easy read. Global CO2 emissions rose by +6% to 36.3bn tons in 2021, more than offsetting the reduction in 2020 due to Covid-19. The sustainable recovery much touted by governments has so far yet to come to fruition.

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The cost of freedom is always high… but renewables are cheap

The development of the Clean Energy sector has historically been significantly impacted by previous energy crises. The war in Ukraine and its major impact on energy markets will be no exception. Sadly, it took a tragedy at our doors for us to come to realize that renewables and energy efficiency are not only about climate change, but also about our independence, freedom, and future prosperity.

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