The U.S. Defense Dept., General Motors, Blackrock & Syngenta - on the Environment
The following comments, from last week, highlight increasing attention to climate change.
U.S. Secretary of Defense Lloyd J. Austin III - On tackling the climate crisis at home and abroad:
“Since 2010, the Department of Defense has acknowledged that the planet’s changing climate has a dramatic effect on our missions, plans, and installations. Every year, we see the consequences of increasing incidents of flooding, drought, wildfires, and extreme weather events on our installations at home. Every year, our commanders and their Allies and partners conduct operations that result from instability in societies strained by desertification, the threat of adversary access to homelands through the Arctic, and the demands for humanitarian assistance worldwide.
“... by changing how we approach our own carbon footprint, the Department can also be a platform for positive change, spurring the development of climate-friendly technologies at scale."
General Motors CEO Mary Barr – Announced that GM will only sell zero-emission vehicles by 2035 and said:
“General Motors is joining governments and companies around the globe working to establish a safer, greener and better world … we encourage others to follow suit and make a significant impact on our industry and on the economy as a whole.”
Blackrock CEO Larry Fink - From his 2021 letter to CEOs:
“I believe that the pandemic has presented such an existential crisis – such a stark reminder of our fragility – that it has driven us to confront the global threat of climate change more forcefully and to consider how, like the pandemic, it will alter our lives.
" ... we are asking companies to disclose a plan for how their business model will be compatible with a net zero economy ... "
Syngenta Group CEO Erik Fyrwald - On how regenerative agriculture can help advance climate action:
"This year, we expect to see the rollout of ambitious new plans to address climate change.
"The truly sustainable future of farming — I call it regenerative agriculture — is now taking shape. It’s a future driven by improving soil health and agriculture through digital technologies, and we are already catching glimpses of the benefits that these precision tools will deliver in the coming years.
"Advancements in sensors and computer imaging let us identify highly precise spraying areas by considering smaller units, making it possible to manage variability within a field and allow for nuanced application of products and monitoring of crops.
"Putting modern technology into the hands of farmers to ensure they can make good decisions, such as improving the health of their soil and participating in carbon trading markets, will serve them well in a competitive marketplace. "
OUR TAKE
Regarding the Defense Dept.: With an annual budget of over $685 billion, they can have a significant positive influence on the environment by adopting more efficient and innovative approaches across a broad set of global activities.
Regarding General Motors: Their focus on zero-emission vehicles is a game-changer - and should drive more environmentally friendly efforts across the transportation sector.
Regarding Blackrock: Fink has been concerned about climate change for years - investors will focus on risks to their holdings and new investment opportunities.
Regarding Syngenta: The firm, as a global provider of agricultural solutions (seed, fertilizer, technology, etc.), can help improve farming practices - adoption will be determined by cost and implementation considerations.
These and other market participants will increasingly consider "the social cost of carbon", which could be the focus of a future weekly note.