ESG – Environment/Social/Governance: What & Why?

ESG is the application of socially aware and responsible standards centered on the environment, society, and internal governance.

ESG investment refers to an investment strategy which seeks equivalent or higher returns while simultaneously making a positive impact in three areas: environmental, social and governance

According to the U.S. SEC:

  • The environmental factor might focus on a company’s impact on the environment, or the risks and opportunities associated with the impacts of climate change on the company, its business and its industry.
  • The social factor might focus on the company’s relationship with people and society, or whether the company invests in its community.
  • The governance factor might focus on issues such as how the company is run and executive compensation.

Investors, especially institutional investors, have increasingly focused on the ESG aspects of their investments from a mixture of concern, profit, and regulatory pressure. This emphasis has in turn put pressure on investment recipients to conform with ESG standards in a reportable manner.

More specifically:

               Environment – too often viewed solely as energy consumption/emissions addressable by decarbonizing. Environment refers to the entirety of the environment including air/water/sound pollution, energy consumption, ecological features, and aesthetics.

               Social – refers to the human factors such as labor standards, workplace health & safety, local community involvement/benefits/impacts. It can be as simple as providing nutritional advice to tenants to economic development for the local community.

               Governance – referring to the entity’s internal governance practices – is ESG a recognized standard, are there internal rules for ESG measurements and compliance, what is the level of commitment – an analysist or the C-Suite.

_____________________________

Why ESG / Sustainability

The simplest answer is that sustainability is necessary to the survival of civilization and perhaps humanity. Pretentious sounding but the UN estimates that humanity is consuming the equivalent of 1.6 planets. In other words, in the seven months from January 2022 to July 2022 humanity consumed all the biological resources that the Earth regenerates over the entire year. And as a purely financial matter, it’s also good business reducing costs and increasing profits to be explained in future posts.

 

A Most Internationally Modernized City – Next City

The New Celestial Empire:

Author’s note: China’s “One Belt One Road” Initiative is an audacious plan to cover half the earth in Chinese-built infrastructure: railways, highways, shipping lanes, and energy corridors. One of the initiative’s marquee projects is a railway that China would like to build from its southern city of Kunming all the way through Southeast Asia to Singapore. Construction has just gotten started, particularly in Laos, the first Southeast Asian country the railway would run through. A poor and extremely undeveloped place, Laos has seen China’s presence grow quickly in recent years. I traveled to Laos in March 2017 while researching a book about the railway to see for myself how the project was coming along. What I found was surreal.

In the remote Laos-China border region, China is turning highland villages into teeming industrial hubs. Engineers have sliced modern highways — the kind you rarely see in Laos — through the jungle. And in one case, Chinese city-builders are resurrecting Boten, a former casino town that had been abandoned years prior, retrofitting it to serve as the railway’s entry point into Laos. This chapter-length excerpt is a snapshot of this isolated region and its dramatic transformation, as China begins its inexorable march with steam shovels, blueprints and big plans for the future.

Source: A Most Internationally Modernized City – Next City

What You Can Learn About the Future of Cities from Wakanda – CityLab

Citylab has pulled together a Wakanda Reader, or online bibliography of sorts, to indulge those who are interested in the larger questions around urbanism implicated in Black Panther. We would call it a syllabus, but there are already several syllabi available—this #WakandaSyllabusfrom Walter Greason, an economic history professor at Monmouth University and founder of the International Center of Metropolitan Growth, is particularly good. This Wakanda curriculum for middle school grades from school teacher Tess Raker has also been making the rounds.

As for what else has been circulating, here’s an exhaustive, still-living-and-growing list of articles that build upon the Wakandan mystique:

https://www.citylab.com/equity/2018/02/the-wakanda-reader/553865/?utm_source=twb

The Shortcomings of the Plan to Expand Penn Station – CityLab

New York’s Pennsylvania Station is among the most unpopular places anyone in the Northeast United States has to visit. Today’s station structure, shared with Madison Square Garden, is an urban renewal project from 1963 that replaced a majestic Beaux-Arts building, whose demolition provoked outrage and sparked the historic preservation movement. The late architectural historian Vincent Scully said of the original station, “Through it one entered the city like a god. … One scuttles in now like a rat.” In the

Source: The Shortcomings of the Plan to Expand Penn Station – CityLab

Basel’s Tri-national Streetcar Connects France, Switzerland, Germany – CityLab

Basel's new streetcar is pictured.

 

The new streetcar link that launched in Basel, Switzerland, on Tuesday may not look all that special. A low-slung tram painted a shade of racing green, the rolling stock is ferrying passengers just a few stops further down a line that’s been in service since 1897. But these new stops have something special, even ground-breaking about them: While Basel lies in Switzerland, they’re across the border in France. And by opening them, Basel inaugurated the world’s only tri-national streetcar system.

 

Source: Basel’s Tri-national Streetcar Connects France, Switzerland, Germany – CityLab

GCR – News – Norwegian team to build world’s first autonomous electric cargo ship

The battery-driven carrier was created by technology group Kongsberg and fertiliser specialist Yara. It will initially be operated as a manned vessel before moving to remote operations in 2019 and performing fully autonomous operations from 2020.

Ship will replace 100 trucks per day – good for economy, good for company, good for environment, bad for drivers being laid off. Need to address the negatives, not just enjoy the positives.

Source: GCR – News – Norwegian team to build world’s first autonomous electric cargo ship