Categories
Uncategorized

Blog: Sustainable Investing Explained

Article Republished By Javier Troconis

Do you care about social justice and the environment? Are you wondering how you can incorporate these values in the way you invest your money and your retirement savings? This is where sustainable investing comes in. It allows you to invest in a way that aligns with your beliefs and core values. It’s something more people are starting to think about. In this blog, we are going to explore sustainable investing in depth, including the 3 most popular sustainable investing strategies.

Sustainable investing/ESG investing defined

Sustainable investing involves incorporating environmental, social and corporate governance (ESG) criteria into one’s investment or retirement savings portfolio. Let’s say you don’t like private prisons and gun violence, and you like companies that give a fair wage to their employees and are serious about lowering their carbon footprint. Sustainable investing is a way to reflect these values into how you invest your money. It is also a great way to diversify your portfolio.

Is sustainable investing the same as ESG?

They are slightly different but the main concept for both is that you try to make money while supporting companies that do good. The main difference between ESG and sustainability investing is that ESG sets a specific criteria to define the environmental, social, and governance systems as sustainable. Many people use sustainable investing, ESG, Socially Responsible Investing (SRI), ethical, and green investing interchangeably. How each strategy is executed may be slightly different but the overall concept is the same.

How hard is it to add sustainable investments to my portfolio?

Historically, it was no easy task to add sustainable investments to your portfolio. The fees were high, there weren’t many ESG funds, and 401(k)s didn’t offer them. This has now changed and it’s much easier to diversify your portfolio and add sustainable investments. Now, let’s examine how well you can make money when you do ESG or SRI investing.

Socially Responsible Investing Performance: Is sustainable investing profitable?

Sustainable investing has come a long way in recent years. Let’s look at several high-profile studies from the past few years to determine if sustainable investing is profitable.

In a 2019 study conducted by the Morgan Stanley Institute for Sustainable Investing (Sustainable Reality: Analyzing Risk and Returns of Sustainable Funds), the data showed that there is no financial trade-off in the returns of sustainable funds compared to traditional funds. Morgan Stanley analyzed the return and risk performance of ESG-focused mutual and exchange-traded funds (ETFs) against traditional counterparts from 2004 to 2018.

In 2015, Oxford University and Arabesque Partners released a meta-study (From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance) which looked at more than 200 sources, including academic studies, industry reports, newspaper articles and books. Their study showed that “88 percent of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cash flows.” Furthermore, “80 percent of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance.”

In 2020, the NYU Stern Center for Sustainable Business released a comprehensive ESG report that analyzed 1,000+ meta-studies on corporate financial performance and investment performance, published between 2015-2020. Uncovering the Relationship by Aggregating 1,000 Plus Studies Published between 2015-2020. This meta-study found a positive correlation between ESG and corporate financial performance. 59 percent of ESG stock portfolios showed similar or better performance relative to conventional investment approaches while only 14 percent found negative results.

From these studies, we can see how there’s ample evidence saying that sustainable investing can at least perform as well as traditional funds, and in some cases perform even better.

How do you do sustainable investing? 3 popular sustainable investing strategies.

1. Green ETFs

One popular sustainable investing strategy is investing in “green” ETFs. Green ETFs invest in companies that support environmentally-friendly businesses. Basically you are investing in companies that are good for the environment. Green ETFs are generally categorized as broad clean energy, wind or solar. There is no single definition for the word “green” so it is up to the investor to determine if the fund’s values align with their own.

The only problem with these green ETFs is that you are investing in a field that is highly competitive and technology is rapidly changing. Many of the green investments also involve newer and smaller companies. This means that a solar or wind company that’s popular now may no longer be in operation 10 years from now.

2. Sustainability Index Funds:

Another popular sustainable investing strategy is investing in sustainability index funds. These Sustainability Index Funds are index funds that will only include companies that have been screened for certain environmental, social, and corporate governance (ESG) criteria. Examples of criteria include if they are generating water pollution or causing deforestation. These will count against the company. If they have good labor standards then it’s a plus.

Sustainability index funds exclude “sin” stocks – like adult entertainment, alcohol, tobacco, weapons, fossil fuels, gambling, and nuclear power.

Sustainability Index Funds will contain more companies across various industries, which means that it’s more diversified. A clean energy ETF might contain 80 stocks compared to a sustainability index fund which might contain 1,500 stocks.

If you are interested in sustainability index funds,Fidelity has 2 “sustainability” stock index funds and 1 sustainability bond index fund. Vanguard has 2 “ESG” stock ETFs and 1 ESG mutual fund. Northern Trust also has sustainability stock funds that can be purchased in Fidelity or any other brokerage.

In your 401(k) investment lineup you can look for the word “sustainable.” If you find a fund that says “U.S. Sustainability Index,” then that’s likely invested in U.S. large companies that have good ESG ratings. In my experience, it’s not that common to have Sustainable funds in 401(k)s.

Sustainability Index Funds are index funds which means that you’re paying lower fees. Lower fees mean that you get to keep more of your money. If you like to know more about why index funds are great, check out our blog on Fidelity index funds for beginners.

3. Actively managed funds

Actively managed funds pick socially responsible companies that have attractive valuations and higher potential returns. These funds use a manager, or a team of managers, to pick “green” companies that they think will outperform the market. This can appeal to some people. However, one of the negatives of actively managed funds is that it’s an active fund. This means that you are probably going to pay more in fees.

How to get started with ESG investing

ESG investing doesn’t need to be complicated. Sustainable investment opportunities continue to grow as companies make more ethically conscious decisions. You need to think about what you will and won’t support and what industries you want to focus on.

While it is possible to start a sustainable investment portfolio on your own, it will take a lot of time and work. Working with a fiduciary financial advisor will mean that you will have access to more investment opportunities without the need to do all of the research yourself. They will also help you determine your risk tolerance, and your long and short term goals.

Want to create a sustainable investment portfolio?

ESG investing can help put your capital to work and positively contribute to a better world and a more sustainable future. We would love to know if you are currently doing sustainable investing or if it’s something you are thinking about. If you want help with your finances and are interested in having a comprehensive financial plan, feel free to schedule a discovery call with one of our financial advisors today!

MCM disclaimer for blogger content

Categories
Uncategorized

Blog: Sustainable Investing Explained

Article Republished By Javier Troconis

Do you care about social justice and the environment? Are you wondering how you can incorporate these values in the way you invest your money and your retirement savings? This is where sustainable investing comes in. It allows you to invest in a way that aligns with your beliefs and core values. It’s something more people are starting to think about. In this blog, we are going to explore sustainable investing in depth, including the 3 most popular sustainable investing strategies.

Sustainable investing/ESG investing defined

Sustainable investing involves incorporating environmental, social and corporate governance (ESG) criteria into one’s investment or retirement savings portfolio. Let’s say you don’t like private prisons and gun violence, and you like companies that give a fair wage to their employees and are serious about lowering their carbon footprint. Sustainable investing is a way to reflect these values into how you invest your money. It is also a great way to diversify your portfolio.

Is sustainable investing the same as ESG?

They are slightly different but the main concept for both is that you try to make money while supporting companies that do good. The main difference between ESG and sustainability investing is that ESG sets a specific criteria to define the environmental, social, and governance systems as sustainable. Many people use sustainable investing, ESG, Socially Responsible Investing (SRI), ethical, and green investing interchangeably. How each strategy is executed may be slightly different but the overall concept is the same.

How hard is it to add sustainable investments to my portfolio?

Historically, it was no easy task to add sustainable investments to your portfolio. The fees were high, there weren’t many ESG funds, and 401(k)s didn’t offer them. This has now changed and it’s much easier to diversify your portfolio and add sustainable investments. Now, let’s examine how well you can make money when you do ESG or SRI investing.

Socially Responsible Investing Performance: Is sustainable investing profitable?

Sustainable investing has come a long way in recent years. Let’s look at several high-profile studies from the past few years to determine if sustainable investing is profitable.

In a 2019 study conducted by the Morgan Stanley Institute for Sustainable Investing (Sustainable Reality: Analyzing Risk and Returns of Sustainable Funds), the data showed that there is no financial trade-off in the returns of sustainable funds compared to traditional funds. Morgan Stanley analyzed the return and risk performance of ESG-focused mutual and exchange-traded funds (ETFs) against traditional counterparts from 2004 to 2018.

In 2015, Oxford University and Arabesque Partners released a meta-study (From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance) which looked at more than 200 sources, including academic studies, industry reports, newspaper articles and books. Their study showed that “88 percent of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cash flows.” Furthermore, “80 percent of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance.”

In 2020, the NYU Stern Center for Sustainable Business released a comprehensive ESG report that analyzed 1,000+ meta-studies on corporate financial performance and investment performance, published between 2015-2020. Uncovering the Relationship by Aggregating 1,000 Plus Studies Published between 2015-2020. This meta-study found a positive correlation between ESG and corporate financial performance. 59 percent of ESG stock portfolios showed similar or better performance relative to conventional investment approaches while only 14 percent found negative results.

From these studies, we can see how there’s ample evidence saying that sustainable investing can at least perform as well as traditional funds, and in some cases perform even better.

How do you do sustainable investing? 3 popular sustainable investing strategies.

1. Green ETFs

One popular sustainable investing strategy is investing in “green” ETFs. Green ETFs invest in companies that support environmentally-friendly businesses. Basically you are investing in companies that are good for the environment. Green ETFs are generally categorized as broad clean energy, wind or solar. There is no single definition for the word “green” so it is up to the investor to determine if the fund’s values align with their own.

The only problem with these green ETFs is that you are investing in a field that is highly competitive and technology is rapidly changing. Many of the green investments also involve newer and smaller companies. This means that a solar or wind company that’s popular now may no longer be in operation 10 years from now.

2. Sustainability Index Funds:

Another popular sustainable investing strategy is investing in sustainability index funds. These Sustainability Index Funds are index funds that will only include companies that have been screened for certain environmental, social, and corporate governance (ESG) criteria. Examples of criteria include if they are generating water pollution or causing deforestation. These will count against the company. If they have good labor standards then it’s a plus.

Sustainability index funds exclude “sin” stocks – like adult entertainment, alcohol, tobacco, weapons, fossil fuels, gambling, and nuclear power.

Sustainability Index Funds will contain more companies across various industries, which means that it’s more diversified. A clean energy ETF might contain 80 stocks compared to a sustainability index fund which might contain 1,500 stocks.

If you are interested in sustainability index funds,Fidelity has 2 “sustainability” stock index funds and 1 sustainability bond index fund. Vanguard has 2 “ESG” stock ETFs and 1 ESG mutual fund. Northern Trust also has sustainability stock funds that can be purchased in Fidelity or any other brokerage.

In your 401(k) investment lineup you can look for the word “sustainable.” If you find a fund that says “U.S. Sustainability Index,” then that’s likely invested in U.S. large companies that have good ESG ratings. In my experience, it’s not that common to have Sustainable funds in 401(k)s.

Sustainability Index Funds are index funds which means that you’re paying lower fees. Lower fees mean that you get to keep more of your money. If you like to know more about why index funds are great, check out our blog on Fidelity index funds for beginners.

3. Actively managed funds

Actively managed funds pick socially responsible companies that have attractive valuations and higher potential returns. These funds use a manager, or a team of managers, to pick “green” companies that they think will outperform the market. This can appeal to some people. However, one of the negatives of actively managed funds is that it’s an active fund. This means that you are probably going to pay more in fees.

How to get started with ESG investing

ESG investing doesn’t need to be complicated. Sustainable investment opportunities continue to grow as companies make more ethically conscious decisions. You need to think about what you will and won’t support and what industries you want to focus on.

While it is possible to start a sustainable investment portfolio on your own, it will take a lot of time and work. Working with a fiduciary financial advisor will mean that you will have access to more investment opportunities without the need to do all of the research yourself. They will also help you determine your risk tolerance, and your long and short term goals.

Want to create a sustainable investment portfolio?

ESG investing can help put your capital to work and positively contribute to a better world and a more sustainable future. We would love to know if you are currently doing sustainable investing or if it’s something you are thinking about. If you want help with your finances and are interested in having a comprehensive financial plan, feel free to schedule a discovery call with one of our financial advisors today!

MCM disclaimer for blogger content

Categories
Uncategorized

Blog: Sustainable Investing Explained

Article Republished By Javier Troconis

Do you care about social justice and the environment? Are you wondering how you can incorporate these values in the way you invest your money and your retirement savings? This is where sustainable investing comes in. It allows you to invest in a way that aligns with your beliefs and core values. It’s something more people are starting to think about. In this blog, we are going to explore sustainable investing in depth, including the 3 most popular sustainable investing strategies.

Sustainable investing/ESG investing defined

Sustainable investing involves incorporating environmental, social and corporate governance (ESG) criteria into one’s investment or retirement savings portfolio. Let’s say you don’t like private prisons and gun violence, and you like companies that give a fair wage to their employees and are serious about lowering their carbon footprint. Sustainable investing is a way to reflect these values into how you invest your money. It is also a great way to diversify your portfolio.

Is sustainable investing the same as ESG?

They are slightly different but the main concept for both is that you try to make money while supporting companies that do good. The main difference between ESG and sustainability investing is that ESG sets a specific criteria to define the environmental, social, and governance systems as sustainable. Many people use sustainable investing, ESG, Socially Responsible Investing (SRI), ethical, and green investing interchangeably. How each strategy is executed may be slightly different but the overall concept is the same.

How hard is it to add sustainable investments to my portfolio?

Historically, it was no easy task to add sustainable investments to your portfolio. The fees were high, there weren’t many ESG funds, and 401(k)s didn’t offer them. This has now changed and it’s much easier to diversify your portfolio and add sustainable investments. Now, let’s examine how well you can make money when you do ESG or SRI investing.

Socially Responsible Investing Performance: Is sustainable investing profitable?

Sustainable investing has come a long way in recent years. Let’s look at several high-profile studies from the past few years to determine if sustainable investing is profitable.

In a 2019 study conducted by the Morgan Stanley Institute for Sustainable Investing (Sustainable Reality: Analyzing Risk and Returns of Sustainable Funds), the data showed that there is no financial trade-off in the returns of sustainable funds compared to traditional funds. Morgan Stanley analyzed the return and risk performance of ESG-focused mutual and exchange-traded funds (ETFs) against traditional counterparts from 2004 to 2018.

In 2015, Oxford University and Arabesque Partners released a meta-study (From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance) which looked at more than 200 sources, including academic studies, industry reports, newspaper articles and books. Their study showed that “88 percent of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cash flows.” Furthermore, “80 percent of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance.”

In 2020, the NYU Stern Center for Sustainable Business released a comprehensive ESG report that analyzed 1,000+ meta-studies on corporate financial performance and investment performance, published between 2015-2020. Uncovering the Relationship by Aggregating 1,000 Plus Studies Published between 2015-2020. This meta-study found a positive correlation between ESG and corporate financial performance. 59 percent of ESG stock portfolios showed similar or better performance relative to conventional investment approaches while only 14 percent found negative results.

From these studies, we can see how there’s ample evidence saying that sustainable investing can at least perform as well as traditional funds, and in some cases perform even better.

How do you do sustainable investing? 3 popular sustainable investing strategies.

1. Green ETFs

One popular sustainable investing strategy is investing in “green” ETFs. Green ETFs invest in companies that support environmentally-friendly businesses. Basically you are investing in companies that are good for the environment. Green ETFs are generally categorized as broad clean energy, wind or solar. There is no single definition for the word “green” so it is up to the investor to determine if the fund’s values align with their own.

The only problem with these green ETFs is that you are investing in a field that is highly competitive and technology is rapidly changing. Many of the green investments also involve newer and smaller companies. This means that a solar or wind company that’s popular now may no longer be in operation 10 years from now.

2. Sustainability Index Funds:

Another popular sustainable investing strategy is investing in sustainability index funds. These Sustainability Index Funds are index funds that will only include companies that have been screened for certain environmental, social, and corporate governance (ESG) criteria. Examples of criteria include if they are generating water pollution or causing deforestation. These will count against the company. If they have good labor standards then it’s a plus.

Sustainability index funds exclude “sin” stocks – like adult entertainment, alcohol, tobacco, weapons, fossil fuels, gambling, and nuclear power.

Sustainability Index Funds will contain more companies across various industries, which means that it’s more diversified. A clean energy ETF might contain 80 stocks compared to a sustainability index fund which might contain 1,500 stocks.

If you are interested in sustainability index funds,Fidelity has 2 “sustainability” stock index funds and 1 sustainability bond index fund. Vanguard has 2 “ESG” stock ETFs and 1 ESG mutual fund. Northern Trust also has sustainability stock funds that can be purchased in Fidelity or any other brokerage.

In your 401(k) investment lineup you can look for the word “sustainable.” If you find a fund that says “U.S. Sustainability Index,” then that’s likely invested in U.S. large companies that have good ESG ratings. In my experience, it’s not that common to have Sustainable funds in 401(k)s.

Sustainability Index Funds are index funds which means that you’re paying lower fees. Lower fees mean that you get to keep more of your money. If you like to know more about why index funds are great, check out our blog on Fidelity index funds for beginners.

3. Actively managed funds

Actively managed funds pick socially responsible companies that have attractive valuations and higher potential returns. These funds use a manager, or a team of managers, to pick “green” companies that they think will outperform the market. This can appeal to some people. However, one of the negatives of actively managed funds is that it’s an active fund. This means that you are probably going to pay more in fees.

How to get started with ESG investing

ESG investing doesn’t need to be complicated. Sustainable investment opportunities continue to grow as companies make more ethically conscious decisions. You need to think about what you will and won’t support and what industries you want to focus on.

While it is possible to start a sustainable investment portfolio on your own, it will take a lot of time and work. Working with a fiduciary financial advisor will mean that you will have access to more investment opportunities without the need to do all of the research yourself. They will also help you determine your risk tolerance, and your long and short term goals.

Want to create a sustainable investment portfolio?

ESG investing can help put your capital to work and positively contribute to a better world and a more sustainable future. We would love to know if you are currently doing sustainable investing or if it’s something you are thinking about. If you want help with your finances and are interested in having a comprehensive financial plan, feel free to schedule a discovery call with one of our financial advisors today!

MCM disclaimer for blogger content

Categories
Uncategorized

Blog: Sustainable Investing Explained

Article Republished By Javier Troconis

Do you care about social justice and the environment? Are you wondering how you can incorporate these values in the way you invest your money and your retirement savings? This is where sustainable investing comes in. It allows you to invest in a way that aligns with your beliefs and core values. It’s something more people are starting to think about. In this blog, we are going to explore sustainable investing in depth, including the 3 most popular sustainable investing strategies.

Sustainable investing/ESG investing defined

Sustainable investing involves incorporating environmental, social and corporate governance (ESG) criteria into one’s investment or retirement savings portfolio. Let’s say you don’t like private prisons and gun violence, and you like companies that give a fair wage to their employees and are serious about lowering their carbon footprint. Sustainable investing is a way to reflect these values into how you invest your money. It is also a great way to diversify your portfolio.

Is sustainable investing the same as ESG?

They are slightly different but the main concept for both is that you try to make money while supporting companies that do good. The main difference between ESG and sustainability investing is that ESG sets a specific criteria to define the environmental, social, and governance systems as sustainable. Many people use sustainable investing, ESG, Socially Responsible Investing (SRI), ethical, and green investing interchangeably. How each strategy is executed may be slightly different but the overall concept is the same.

How hard is it to add sustainable investments to my portfolio?

Historically, it was no easy task to add sustainable investments to your portfolio. The fees were high, there weren’t many ESG funds, and 401(k)s didn’t offer them. This has now changed and it’s much easier to diversify your portfolio and add sustainable investments. Now, let’s examine how well you can make money when you do ESG or SRI investing.

Socially Responsible Investing Performance: Is sustainable investing profitable?

Sustainable investing has come a long way in recent years. Let’s look at several high-profile studies from the past few years to determine if sustainable investing is profitable.

In a 2019 study conducted by the Morgan Stanley Institute for Sustainable Investing (Sustainable Reality: Analyzing Risk and Returns of Sustainable Funds), the data showed that there is no financial trade-off in the returns of sustainable funds compared to traditional funds. Morgan Stanley analyzed the return and risk performance of ESG-focused mutual and exchange-traded funds (ETFs) against traditional counterparts from 2004 to 2018.

In 2015, Oxford University and Arabesque Partners released a meta-study (From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance) which looked at more than 200 sources, including academic studies, industry reports, newspaper articles and books. Their study showed that “88 percent of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cash flows.” Furthermore, “80 percent of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance.”

In 2020, the NYU Stern Center for Sustainable Business released a comprehensive ESG report that analyzed 1,000+ meta-studies on corporate financial performance and investment performance, published between 2015-2020. Uncovering the Relationship by Aggregating 1,000 Plus Studies Published between 2015-2020. This meta-study found a positive correlation between ESG and corporate financial performance. 59 percent of ESG stock portfolios showed similar or better performance relative to conventional investment approaches while only 14 percent found negative results.

From these studies, we can see how there’s ample evidence saying that sustainable investing can at least perform as well as traditional funds, and in some cases perform even better.

How do you do sustainable investing? 3 popular sustainable investing strategies.

1. Green ETFs

One popular sustainable investing strategy is investing in “green” ETFs. Green ETFs invest in companies that support environmentally-friendly businesses. Basically you are investing in companies that are good for the environment. Green ETFs are generally categorized as broad clean energy, wind or solar. There is no single definition for the word “green” so it is up to the investor to determine if the fund’s values align with their own.

The only problem with these green ETFs is that you are investing in a field that is highly competitive and technology is rapidly changing. Many of the green investments also involve newer and smaller companies. This means that a solar or wind company that’s popular now may no longer be in operation 10 years from now.

2. Sustainability Index Funds:

Another popular sustainable investing strategy is investing in sustainability index funds. These Sustainability Index Funds are index funds that will only include companies that have been screened for certain environmental, social, and corporate governance (ESG) criteria. Examples of criteria include if they are generating water pollution or causing deforestation. These will count against the company. If they have good labor standards then it’s a plus.

Sustainability index funds exclude “sin” stocks – like adult entertainment, alcohol, tobacco, weapons, fossil fuels, gambling, and nuclear power.

Sustainability Index Funds will contain more companies across various industries, which means that it’s more diversified. A clean energy ETF might contain 80 stocks compared to a sustainability index fund which might contain 1,500 stocks.

If you are interested in sustainability index funds,Fidelity has 2 “sustainability” stock index funds and 1 sustainability bond index fund. Vanguard has 2 “ESG” stock ETFs and 1 ESG mutual fund. Northern Trust also has sustainability stock funds that can be purchased in Fidelity or any other brokerage.

In your 401(k) investment lineup you can look for the word “sustainable.” If you find a fund that says “U.S. Sustainability Index,” then that’s likely invested in U.S. large companies that have good ESG ratings. In my experience, it’s not that common to have Sustainable funds in 401(k)s.

Sustainability Index Funds are index funds which means that you’re paying lower fees. Lower fees mean that you get to keep more of your money. If you like to know more about why index funds are great, check out our blog on Fidelity index funds for beginners.

3. Actively managed funds

Actively managed funds pick socially responsible companies that have attractive valuations and higher potential returns. These funds use a manager, or a team of managers, to pick “green” companies that they think will outperform the market. This can appeal to some people. However, one of the negatives of actively managed funds is that it’s an active fund. This means that you are probably going to pay more in fees.

How to get started with ESG investing

ESG investing doesn’t need to be complicated. Sustainable investment opportunities continue to grow as companies make more ethically conscious decisions. You need to think about what you will and won’t support and what industries you want to focus on.

While it is possible to start a sustainable investment portfolio on your own, it will take a lot of time and work. Working with a fiduciary financial advisor will mean that you will have access to more investment opportunities without the need to do all of the research yourself. They will also help you determine your risk tolerance, and your long and short term goals.

Want to create a sustainable investment portfolio?

ESG investing can help put your capital to work and positively contribute to a better world and a more sustainable future. We would love to know if you are currently doing sustainable investing or if it’s something you are thinking about. If you want help with your finances and are interested in having a comprehensive financial plan, feel free to schedule a discovery call with one of our financial advisors today!

MCM disclaimer for blogger content

Categories
Uncategorized

GE had talks with N.Y. about offshore wind manufacturing facility

Article Republished By Javier Troconis

SCHENECTADY – General Electric Co. has been quietly meeting with state and local officials in recent months about building a new offshore wind manufacturing facility in the region, along with potential government subsidies that would be available for such a venture, state lobbying records show.

The behind-the-scenes talks have been happening as U.S. Senate Majority Leader Charles Schumer of New York has been pressing the CEOs of GE and Vestas, a Danish wind turbine maker, to consider establishing manufacturing sites in the Capital Region.

Most offshore wind turbine parts are currently made in Europe and Asia where the majority of existing offshore wind farms are located, although manufacturers are now looking to the U.S. as offshore wind becomes more popular here. A handful of turbine or turbine parts-makers have set up shop in the U.S. so far.

“New York is already committed to making bold investments in offshore wind, and with the federal incentives I am fighting to deliver for the clean energy sector and for manufacturing, GE and Vestas can reach new heights by choosing upstate New York for new job-creating manufacturing investment,” Schumer said in a statement on Thursday.

In October, Vestas was selected as the preferred supplier to two offshore wind farms being built off Long Island, the Empire Wind 1 and Empire Wind 2 projects. The two projects will produce enough power for 1 million homes.

State lobbying records show that GE executives and lobbyists with Plummer & Wigger in Albany have spoken about potential plans for a new wind turbine manufacturing facility with officials at Empire State Development, the state’s economic development arm, as well as top officials at the Port of Albany and the Rensselaer County Industrial Development Agency. NYSERDA, the state’s clean energy development agency, was also involved.

The meetings were about a “prospective offshore wind manufacturing facility,” the records show, although the exact location and size of the facility and other details like job numbers or project costs were not mentioned in the filings.

GE makes its offshore wind turbines in France, which is also where GE’s renewable energy business is headquartered. No decision has been made yet whether the company needs to build an offshore wind turbine factory in the U.S. or whether New York state would be the best location. A number of factors, including orders, customer locations and the global business environment, have to be considered.

“We have regular discussions with key stakeholders in New York state on a host of energy topics that are important to us, including the future of offshore wind,” GE said in a statement provided to the Times Union. “New York has been out front as a key leader in advancing offshore wind in the U.S. We will continue to engage with federal, state and local officials on this topic and other important clean energy priorities.”

The Port of Albany is already preparing a new site along the Hudson River in the town of Bethlehem for a $350 million offshore wind turbine tower assembly site that would create hundreds of new jobs. The towers are being made by a joint venture of two firms, Marmen and Welcon, that are supplying the towers for the Vestas turbines that will be used in the Empire Wind farms.

It is unclear if GE is looking to make some or all of the components that make up offshore wind turbines at the potential new facility.

GE makes steam turbines and generators used in gas-fired power plants at its Schenectady campus, which is also the headquarters for GE Power. While GE’s renewable energy unit is based in France, GE also has many wind experts and engineers working out of Schenectady.

Schumer has been asking GE CEO Larry Culp for months now to consider the Capital Region for a new U.S. factory that he says GE is considering for its new Haliade-X offshore wind turbines. The Haliade-X is currently built in France by GE’s renewable energy unit. Like the turbines that Vestas makes, each Haliade-X unit can generate enough electricity each day to power up to 20,000 homes.

Schumer also recently met with Laura Beane, head of North American operations for Vestas, asking her to consider the Capital Region for any U.S. expansion. Vestas makes some onshore wind turbine components now in Colorado, although most of its manufacturing is done abroad.

Vestas officials could not immediately be reached for comment, although state lobbying records show the company’s representatives have met with the governor’s office to discuss “offshore wind energy opportunities” in the state.

Additionally, Siemens Gamesa is planning an offshore wind turbine blade factory in Virginia. That would be its first in the U.S. 

Wind turbines have traditionally been made outside of the U.S. But states like New York have been requesting that companies that win leases for offshore wind farms off its shores locate manufacturing in the state as well.

Gov. Kathy Hochul has supported the state’s offshore wind program and the economic development opportunities it is providing to the state.

Schumer has secured tens of millions of dollars in federal funding for the Capital Region to support infrastructure and job training at the Port of Albany for the offshore wind turbine tower facility. 

Albany is viewed as a prime location since the towers can be floated down the Hudson River on barges to a staging area in New York City for the offshore wind farms. 

GE has used the Port of Albany to ship its steam turbines and generators overseas as well.

Categories
Uncategorized

GE had talks with N.Y. about offshore wind manufacturing facility

Article Republished By Javier Troconis

SCHENECTADY – General Electric Co. has been quietly meeting with state and local officials in recent months about building a new offshore wind manufacturing facility in the region, along with potential government subsidies that would be available for such a venture, state lobbying records show.

The behind-the-scenes talks have been happening as U.S. Senate Majority Leader Charles Schumer of New York has been pressing the CEOs of GE and Vestas, a Danish wind turbine maker, to consider establishing manufacturing sites in the Capital Region.

Most offshore wind turbine parts are currently made in Europe and Asia where the majority of existing offshore wind farms are located, although manufacturers are now looking to the U.S. as offshore wind becomes more popular here. A handful of turbine or turbine parts-makers have set up shop in the U.S. so far.

“New York is already committed to making bold investments in offshore wind, and with the federal incentives I am fighting to deliver for the clean energy sector and for manufacturing, GE and Vestas can reach new heights by choosing upstate New York for new job-creating manufacturing investment,” Schumer said in a statement on Thursday.

In October, Vestas was selected as the preferred supplier to two offshore wind farms being built off Long Island, the Empire Wind 1 and Empire Wind 2 projects. The two projects will produce enough power for 1 million homes.

State lobbying records show that GE executives and lobbyists with Plummer & Wigger in Albany have spoken about potential plans for a new wind turbine manufacturing facility with officials at Empire State Development, the state’s economic development arm, as well as top officials at the Port of Albany and the Rensselaer County Industrial Development Agency. NYSERDA, the state’s clean energy development agency, was also involved.

The meetings were about a “prospective offshore wind manufacturing facility,” the records show, although the exact location and size of the facility and other details like job numbers or project costs were not mentioned in the filings.

GE makes its offshore wind turbines in France, which is also where GE’s renewable energy business is headquartered. No decision has been made yet whether the company needs to build an offshore wind turbine factory in the U.S. or whether New York state would be the best location. A number of factors, including orders, customer locations and the global business environment, have to be considered.

“We have regular discussions with key stakeholders in New York state on a host of energy topics that are important to us, including the future of offshore wind,” GE said in a statement provided to the Times Union. “New York has been out front as a key leader in advancing offshore wind in the U.S. We will continue to engage with federal, state and local officials on this topic and other important clean energy priorities.”

The Port of Albany is already preparing a new site along the Hudson River in the town of Bethlehem for a $350 million offshore wind turbine tower assembly site that would create hundreds of new jobs. The towers are being made by a joint venture of two firms, Marmen and Welcon, that are supplying the towers for the Vestas turbines that will be used in the Empire Wind farms.

It is unclear if GE is looking to make some or all of the components that make up offshore wind turbines at the potential new facility.

GE makes steam turbines and generators used in gas-fired power plants at its Schenectady campus, which is also the headquarters for GE Power. While GE’s renewable energy unit is based in France, GE also has many wind experts and engineers working out of Schenectady.

Schumer has been asking GE CEO Larry Culp for months now to consider the Capital Region for a new U.S. factory that he says GE is considering for its new Haliade-X offshore wind turbines. The Haliade-X is currently built in France by GE’s renewable energy unit. Like the turbines that Vestas makes, each Haliade-X unit can generate enough electricity each day to power up to 20,000 homes.

Schumer also recently met with Laura Beane, head of North American operations for Vestas, asking her to consider the Capital Region for any U.S. expansion. Vestas makes some onshore wind turbine components now in Colorado, although most of its manufacturing is done abroad.

Vestas officials could not immediately be reached for comment, although state lobbying records show the company’s representatives have met with the governor’s office to discuss “offshore wind energy opportunities” in the state.

Additionally, Siemens Gamesa is planning an offshore wind turbine blade factory in Virginia. That would be its first in the U.S. 

Wind turbines have traditionally been made outside of the U.S. But states like New York have been requesting that companies that win leases for offshore wind farms off its shores locate manufacturing in the state as well.

Gov. Kathy Hochul has supported the state’s offshore wind program and the economic development opportunities it is providing to the state.

Schumer has secured tens of millions of dollars in federal funding for the Capital Region to support infrastructure and job training at the Port of Albany for the offshore wind turbine tower facility. 

Albany is viewed as a prime location since the towers can be floated down the Hudson River on barges to a staging area in New York City for the offshore wind farms. 

GE has used the Port of Albany to ship its steam turbines and generators overseas as well.

Categories
Uncategorized

GE had talks with N.Y. about offshore wind manufacturing facility

Article Republished By Javier Troconis

SCHENECTADY – General Electric Co. has been quietly meeting with state and local officials in recent months about building a new offshore wind manufacturing facility in the region, along with potential government subsidies that would be available for such a venture, state lobbying records show.

The behind-the-scenes talks have been happening as U.S. Senate Majority Leader Charles Schumer of New York has been pressing the CEOs of GE and Vestas, a Danish wind turbine maker, to consider establishing manufacturing sites in the Capital Region.

Most offshore wind turbine parts are currently made in Europe and Asia where the majority of existing offshore wind farms are located, although manufacturers are now looking to the U.S. as offshore wind becomes more popular here. A handful of turbine or turbine parts-makers have set up shop in the U.S. so far.

“New York is already committed to making bold investments in offshore wind, and with the federal incentives I am fighting to deliver for the clean energy sector and for manufacturing, GE and Vestas can reach new heights by choosing upstate New York for new job-creating manufacturing investment,” Schumer said in a statement on Thursday.

In October, Vestas was selected as the preferred supplier to two offshore wind farms being built off Long Island, the Empire Wind 1 and Empire Wind 2 projects. The two projects will produce enough power for 1 million homes.

State lobbying records show that GE executives and lobbyists with Plummer & Wigger in Albany have spoken about potential plans for a new wind turbine manufacturing facility with officials at Empire State Development, the state’s economic development arm, as well as top officials at the Port of Albany and the Rensselaer County Industrial Development Agency. NYSERDA, the state’s clean energy development agency, was also involved.

The meetings were about a “prospective offshore wind manufacturing facility,” the records show, although the exact location and size of the facility and other details like job numbers or project costs were not mentioned in the filings.

GE makes its offshore wind turbines in France, which is also where GE’s renewable energy business is headquartered. No decision has been made yet whether the company needs to build an offshore wind turbine factory in the U.S. or whether New York state would be the best location. A number of factors, including orders, customer locations and the global business environment, have to be considered.

“We have regular discussions with key stakeholders in New York state on a host of energy topics that are important to us, including the future of offshore wind,” GE said in a statement provided to the Times Union. “New York has been out front as a key leader in advancing offshore wind in the U.S. We will continue to engage with federal, state and local officials on this topic and other important clean energy priorities.”

The Port of Albany is already preparing a new site along the Hudson River in the town of Bethlehem for a $350 million offshore wind turbine tower assembly site that would create hundreds of new jobs. The towers are being made by a joint venture of two firms, Marmen and Welcon, that are supplying the towers for the Vestas turbines that will be used in the Empire Wind farms.

It is unclear if GE is looking to make some or all of the components that make up offshore wind turbines at the potential new facility.

GE makes steam turbines and generators used in gas-fired power plants at its Schenectady campus, which is also the headquarters for GE Power. While GE’s renewable energy unit is based in France, GE also has many wind experts and engineers working out of Schenectady.

Schumer has been asking GE CEO Larry Culp for months now to consider the Capital Region for a new U.S. factory that he says GE is considering for its new Haliade-X offshore wind turbines. The Haliade-X is currently built in France by GE’s renewable energy unit. Like the turbines that Vestas makes, each Haliade-X unit can generate enough electricity each day to power up to 20,000 homes.

Schumer also recently met with Laura Beane, head of North American operations for Vestas, asking her to consider the Capital Region for any U.S. expansion. Vestas makes some onshore wind turbine components now in Colorado, although most of its manufacturing is done abroad.

Vestas officials could not immediately be reached for comment, although state lobbying records show the company’s representatives have met with the governor’s office to discuss “offshore wind energy opportunities” in the state.

Additionally, Siemens Gamesa is planning an offshore wind turbine blade factory in Virginia. That would be its first in the U.S. 

Wind turbines have traditionally been made outside of the U.S. But states like New York have been requesting that companies that win leases for offshore wind farms off its shores locate manufacturing in the state as well.

Gov. Kathy Hochul has supported the state’s offshore wind program and the economic development opportunities it is providing to the state.

Schumer has secured tens of millions of dollars in federal funding for the Capital Region to support infrastructure and job training at the Port of Albany for the offshore wind turbine tower facility. 

Albany is viewed as a prime location since the towers can be floated down the Hudson River on barges to a staging area in New York City for the offshore wind farms. 

GE has used the Port of Albany to ship its steam turbines and generators overseas as well.

Categories
Uncategorized

New SEIA Nonprofit Serves to Advance Solar Industry Research, Policies

Article Republished By Javier Troconis

The Solar Energy Industries Association (SEIA) is launching a 501(c)3 nonprofit to accelerate the transition to carbon-free electricity through clean energy research and analysis.

The Solar and Storage Industries Institute (SI2) will serve as SEIA’s charitable and educational arm, using research, public education initiatives, and policymaker engagement to remove barriers to clean energy deployment.

SI2 will propose and incubate new solutions that encourage the growth of the solar and storage industry. The organization will also tackle some of the biggest challenges facing the solar and storage industry, like land use concerns, antiquated rate designs, workforce development and environmental justice, and interconnection roadblocks, all in an effort to combat climate change and create a more equitable clean energy economy.

“We largely have the technologies we need to address the climate crisis, but several barriers remain to widespread adoption of solar and storage,” says Abigail Ross Hopper, SEIA’s president and CEO and the new chair of SI2’s board of directors. “The window for climate action is narrowing quickly, and we must double down on the clean energy research and analysis needed to dismantle systemic challenges that are holding back the solar and storage industry.”

David Gahl, SEIA’s current senior director of state policy, East, will lead SI2’s work and serve as the institute’s first executive director.

“I’m thrilled to take on this challenge and work with a diverse range of stakeholders to solve the most pressing issues facing America’s clean energy sector,” states Gahl. “SI2 offers the solar and storage industry a special opportunity to harness its creativity and use innovative thinking to chart a new path to a carbon-free future and an equitable clean energy economy.”

While the organization will focus on a variety of issues, one emerging challenge in the solar industry is land use. Siting clean energy projects requires community engagement and long-term planning that minimizes impact to the environment and surrounding community. These projects must also account for access to transmission lines, upgrades to grid infrastructure, and several other factors that can affect the outcome of a large-scale solar project. SI2’s first research project will create best practices for solar companies looking to create large-scale solar projects and other resources that will help the industry navigate these challenges.

In addition to Gahl’s role as executive director and Hopper’s role as board chair, SOLV Energy CEO George Hershman is serving as SI2’s board secretary, and Nautilus Solar co-CEO Laura Stern is board treasurer.

“We applaud SEIA’s efforts to launch SI2 in an effort to tackle barriers to clean energy deployment head-on,” comments Stern. “It’s exciting to be at the forefront of an initiative that will make significant progress to combat climate change and create a clean, sustainable future by offering an equitable and affordable renewable energy choice.”

“Over the last decade the solar industry has been a beacon of innovation, persevering through numerous challenges to emerge as a leading provider of cost-effective energy in the United States,” mentions Hershman. “A brighter future powered by clean energy is possible, and the formation of SI2 will help establish a direct road map to more efficient solar and storage deployment for generations to come.”

Solar energy accounts for roughly 4% of U.S. electricity generation today. If solar energy reaches 30% of U.S. electricity generation by 2030, electricity sector emissions would be cut in half. If the industry reaches its Solar+ Decade goals, the solar and storage industry would create more than $800 billion in economic activity and add more than one million well-paying jobs. Solar and storage businesses stand ready to achieve this goal, but significant red tape and supply chain hurdles stand in the way.

SI2 will work closely with SEIA and lean on its staff and resources while the organization establishes itself. As the organization grows and secures additional funding sources, SI2 will build its team and announce additional priorities and initiatives.

Categories
Uncategorized

New SEIA Nonprofit Serves to Advance Solar Industry Research, Policies

Article Republished By Javier Troconis

The Solar Energy Industries Association (SEIA) is launching a 501(c)3 nonprofit to accelerate the transition to carbon-free electricity through clean energy research and analysis.

The Solar and Storage Industries Institute (SI2) will serve as SEIA’s charitable and educational arm, using research, public education initiatives, and policymaker engagement to remove barriers to clean energy deployment.

SI2 will propose and incubate new solutions that encourage the growth of the solar and storage industry. The organization will also tackle some of the biggest challenges facing the solar and storage industry, like land use concerns, antiquated rate designs, workforce development and environmental justice, and interconnection roadblocks, all in an effort to combat climate change and create a more equitable clean energy economy.

“We largely have the technologies we need to address the climate crisis, but several barriers remain to widespread adoption of solar and storage,” says Abigail Ross Hopper, SEIA’s president and CEO and the new chair of SI2’s board of directors. “The window for climate action is narrowing quickly, and we must double down on the clean energy research and analysis needed to dismantle systemic challenges that are holding back the solar and storage industry.”

David Gahl, SEIA’s current senior director of state policy, East, will lead SI2’s work and serve as the institute’s first executive director.

“I’m thrilled to take on this challenge and work with a diverse range of stakeholders to solve the most pressing issues facing America’s clean energy sector,” states Gahl. “SI2 offers the solar and storage industry a special opportunity to harness its creativity and use innovative thinking to chart a new path to a carbon-free future and an equitable clean energy economy.”

While the organization will focus on a variety of issues, one emerging challenge in the solar industry is land use. Siting clean energy projects requires community engagement and long-term planning that minimizes impact to the environment and surrounding community. These projects must also account for access to transmission lines, upgrades to grid infrastructure, and several other factors that can affect the outcome of a large-scale solar project. SI2’s first research project will create best practices for solar companies looking to create large-scale solar projects and other resources that will help the industry navigate these challenges.

In addition to Gahl’s role as executive director and Hopper’s role as board chair, SOLV Energy CEO George Hershman is serving as SI2’s board secretary, and Nautilus Solar co-CEO Laura Stern is board treasurer.

“We applaud SEIA’s efforts to launch SI2 in an effort to tackle barriers to clean energy deployment head-on,” comments Stern. “It’s exciting to be at the forefront of an initiative that will make significant progress to combat climate change and create a clean, sustainable future by offering an equitable and affordable renewable energy choice.”

“Over the last decade the solar industry has been a beacon of innovation, persevering through numerous challenges to emerge as a leading provider of cost-effective energy in the United States,” mentions Hershman. “A brighter future powered by clean energy is possible, and the formation of SI2 will help establish a direct road map to more efficient solar and storage deployment for generations to come.”

Solar energy accounts for roughly 4% of U.S. electricity generation today. If solar energy reaches 30% of U.S. electricity generation by 2030, electricity sector emissions would be cut in half. If the industry reaches its Solar+ Decade goals, the solar and storage industry would create more than $800 billion in economic activity and add more than one million well-paying jobs. Solar and storage businesses stand ready to achieve this goal, but significant red tape and supply chain hurdles stand in the way.

SI2 will work closely with SEIA and lean on its staff and resources while the organization establishes itself. As the organization grows and secures additional funding sources, SI2 will build its team and announce additional priorities and initiatives.

Categories
Uncategorized

New SEIA Nonprofit Serves to Advance Solar Industry Research, Policies

Article Republished By Javier Troconis

The Solar Energy Industries Association (SEIA) is launching a 501(c)3 nonprofit to accelerate the transition to carbon-free electricity through clean energy research and analysis.

The Solar and Storage Industries Institute (SI2) will serve as SEIA’s charitable and educational arm, using research, public education initiatives, and policymaker engagement to remove barriers to clean energy deployment.

SI2 will propose and incubate new solutions that encourage the growth of the solar and storage industry. The organization will also tackle some of the biggest challenges facing the solar and storage industry, like land use concerns, antiquated rate designs, workforce development and environmental justice, and interconnection roadblocks, all in an effort to combat climate change and create a more equitable clean energy economy.

“We largely have the technologies we need to address the climate crisis, but several barriers remain to widespread adoption of solar and storage,” says Abigail Ross Hopper, SEIA’s president and CEO and the new chair of SI2’s board of directors. “The window for climate action is narrowing quickly, and we must double down on the clean energy research and analysis needed to dismantle systemic challenges that are holding back the solar and storage industry.”

David Gahl, SEIA’s current senior director of state policy, East, will lead SI2’s work and serve as the institute’s first executive director.

“I’m thrilled to take on this challenge and work with a diverse range of stakeholders to solve the most pressing issues facing America’s clean energy sector,” states Gahl. “SI2 offers the solar and storage industry a special opportunity to harness its creativity and use innovative thinking to chart a new path to a carbon-free future and an equitable clean energy economy.”

While the organization will focus on a variety of issues, one emerging challenge in the solar industry is land use. Siting clean energy projects requires community engagement and long-term planning that minimizes impact to the environment and surrounding community. These projects must also account for access to transmission lines, upgrades to grid infrastructure, and several other factors that can affect the outcome of a large-scale solar project. SI2’s first research project will create best practices for solar companies looking to create large-scale solar projects and other resources that will help the industry navigate these challenges.

In addition to Gahl’s role as executive director and Hopper’s role as board chair, SOLV Energy CEO George Hershman is serving as SI2’s board secretary, and Nautilus Solar co-CEO Laura Stern is board treasurer.

“We applaud SEIA’s efforts to launch SI2 in an effort to tackle barriers to clean energy deployment head-on,” comments Stern. “It’s exciting to be at the forefront of an initiative that will make significant progress to combat climate change and create a clean, sustainable future by offering an equitable and affordable renewable energy choice.”

“Over the last decade the solar industry has been a beacon of innovation, persevering through numerous challenges to emerge as a leading provider of cost-effective energy in the United States,” mentions Hershman. “A brighter future powered by clean energy is possible, and the formation of SI2 will help establish a direct road map to more efficient solar and storage deployment for generations to come.”

Solar energy accounts for roughly 4% of U.S. electricity generation today. If solar energy reaches 30% of U.S. electricity generation by 2030, electricity sector emissions would be cut in half. If the industry reaches its Solar+ Decade goals, the solar and storage industry would create more than $800 billion in economic activity and add more than one million well-paying jobs. Solar and storage businesses stand ready to achieve this goal, but significant red tape and supply chain hurdles stand in the way.

SI2 will work closely with SEIA and lean on its staff and resources while the organization establishes itself. As the organization grows and secures additional funding sources, SI2 will build its team and announce additional priorities and initiatives.