The Socially Inspired Investor Podcast Featuring Beam Global CEO Desmond Wheatley

 

In this issue #9 of the Socially Inspired Investor Digest and companion Podcast, we look at how – in an unlikely bi-partisan way – Congress steps up to make an unequivocal stance supporting the fight against climate change, and significantly puts up billions to also make it a meaningful action for jobs and economic recovery. Funding for renewable energy and credits to consumers could make this legislation a critical turning point.

But wait, there could be more!  In addition to re-joining the Paris Accord, President Biden is proposing more clean energy enhancements in his $1.9 trillion COVID relief proposal.  We shall see what the final bill will include but we believe many of the provisions around environmental sustainability haves a decent chance of surviving.

But here is the point for investors.  Criteria historically used to evaluate investment options are changing. Desmond Wheatley who is featured in this month’s Podcast points out that an additional factor to consider is companies meet the “inevitability” of change.  That sounds right as we seem to be in the golden age of companies of all types publicly announcing their commitments to achieving net-zero carbon.

Many companies will need to adapt or unfortunately see their relative value diminish if they cannot keep up. Portfolios should be evaluated not only on previous results but also where in the changing landscape find these companies in 10, 20, 40 years.

The environmental provisions in December, $900 billion stimulus bill includes $35 billion funding for renewable technology and energy efficiency.

• $4 billion for solar, wind, hydropower, and geothermal research and development.
• $1.7 billion to help low-income families install renewable energy sources in their homes.
• $2.6 billion for the Energy Department’s sustainable transportation program.
• and $500 million for research on reducing industrial emissions.

It also authorizes $2.9 billion for the Advanced Research Projects Agency-Energy, a program that funds high-risk, high-reward research.

Welcome to 2021.  Time to freshen up those portfolios.

You Can Listen Again Here