The Triple Bottom - 🌱 A Model S(andwich)

Happy Tuesday. After Tesla looks to be expanding into the restaurant business we’ve spent far too long this week coming up with Tesla restaurant puns… (see title)

In today's edition: 

🥇 The gold standard of climate goals

🍝 Pasta - but not as you know it

💰 A dive into carbon pricing

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💼 Big Business (2-minute read)

In the first case of its kind - BNY Mellon is fined over ESG greenwashing 

The headline: The US Securities and Exchange Commission (SEC) fined BNY Mellon’s investor advisor division $1.5mn (a drop in the ocean compared to the $380bn in assets held by BNY Mellon Investment Adviser) for allegedly misstating and omitting info about environmental, social and governance (ESG) from mutual funds under its management. 
What exactly did BNY Mellon do? BNY Mellon suggested that all investments in the funds had undergone an ESG quality review. But, some funds hadn’t gone through the quality review process.
The importance: The SEC’s dedicated greenwashing agency has shown its teeth & capabilities to investigate, punish and prevent greenwashing - in theory this should deter repeat offences by other finance organisations.

Finland's new climate negative goal is the new gold standard 
The Finnish Parliament approved a new Climate Change Act that would commit the country to carbon neutrality by 2035, and carbon negativity by 2040. Finland is breaking ground: as it would be the first country in the world to legally bind itself to negative emissions (emit less than zero carbon dioxide equivalent) 
Stand out from the crowd: Most countries have only made commitments to carbon neutrality, and most on a much longer timeline than Finland. While some of these are legally binding — Finland cites the laws of Sweden, Denmark and the United Kingdom as examples — many are not.


Tesla diners anyone?
Just in case you thought Elon Musk has too much going on to focus on the Tesla diner concept he's been tweeting about for years... The company recently filed paperwork for a Tesla restaurant with 200-plus seats, giant movie screens and, yes, supercharging stations. Why? At charging stations, Tesla has a captive market for a short period of time. There’s a business catering to that audience, and food service is a part of that.

🤖 Future of Tech (1-minute read)

Bloom helps Sudanese citizens combat inflation by saving in US dollars
Over 200 million people in East Africa do not have access to a bank account or mobile money. Those who do face ongoing concern of inflation, a regional issue affecting how they save and preserve wealth - Sudanese inflation reached over 420% last year. Bloom offers fee-free and high interest rate accounts for users to save in dollars and buy and spend in Sudanese pounds. It also enables users to receive remittances (Generally family members sending money home) from abroad, free of charge. They are joining Y Combinators 22 winter batch to accelerate their growth.

Wastewater + fungi = high protein, carbon-neutral pasta 
Startup, Hyfe Foods, is using mycelium (the root-like part of a mushroom) to create high-protein, low-carb flour for pasta, tortillas and other foods typically made with wheat flour. The company’s USP is its use of sugar-filled water waste (a by-product of beer production) from breweries as nutrient feed for the mycelium. This improves the cost competitiveness of the flour, saves money for breweries, and reduces emissions created by conventional disposing of the water waste.
Why’s this important: A bowl of mycelium pasta has as much protein as a chicken breast meaning it could be an alternative to climate-conscious consumers. Production could also help ease (to a small degree) the global wheat shortage.

🤿 Deep Dive (2-minute read)

Global Carbon Pricing - show me the money

Carbon pricing is an instrument that places a price on greenhouse gas emissions - creating a financial incentive for emitters to reduce those emissions or enhance removals.

There are two main forms: 

  1. Emissions trading systems - caps the total level of greenhouse gas emissions and allows industries with low emissions to sell their extra allowances to larger emitters

  2. Carbon taxes - defines a tax rate on greenhouse gas emissions. 

The World Bank has released their annual report on carbon pricing with the following findings:

  1. Growing adoption: Carbon Pricing now covers 23% of total global emissions. There are some exciting new initiatives - The International Maritime Organisation is considering a price on shipping emissions. The EU moved closer to adopting Carbon Border Adjustment, and Canada and the UK are exploring similar mechanisms.

  2. Increased Revenues: Global carbon pricing revenue in 2021 increased by almost 60 percent from 2020 levels, to around $84 billion = more funds for supporting sustainable economic recovery and aiding a low-carbon transition.

  3. Rising but too low: Carbon prices rallied to all-time highs in several markets - driven by ambitious climate targets and tightened allowances (e.g.Singapore will increase carbon taxes from 5 SGD to 50-80 by 2030). HOWEVER only 4% of global emissions are covered by a carbon price required to keep global heating below 2°C ($50-100 USD).

  4. Innovation aplenty… e.g. Blockchain is being used to ‘tokenise’ carbon credits, allowing an audit trail of purchases, trading and retirement of credits. Governance innovation is also emerging seeking to promote integrity (e.g. Voluntary Carbon Market Initiative)

Visit the Carbon Pricing Dashboard website for up-to-date information on existing and emerging carbon pricing initiatives around the world.

💭 Little Bytes

Quote: “We need an energy transformation on the scale of the industrial revolution at the speed of the digital transformation. And therefore we need a revolution in finance." Mark Carney, UN Special Envoy for Climate Action & Finance.

Stat: Electric Vehicles to account for 33% of new car sales worldwide by 2030

Watch: The world’s largest renewable energy power station has been built in China

🗞 In other news...
  • A project led by Danone and LanzaTech transforms captured carbon into one of the main components of low-carbon plastic.

  • A global buyers club of over 50 companies including Microsoft and Ford Motor pledge at Davos to buy green steel, aluminium and other commodities by 2050

  • Joby’s electrical air-taxi, which aims to begin carrying passengers in 2-years’ time, has gained 3 of the certificates needed to begin transporting people.

  • Shell has faced increasing activist pressure relating to its climate strategy with fewer shareholders backing the plans while protests delayed the annual meeting.

  • UK energy firms will now pay an additional 25% ‘windfall’ tax for the next 12 months due to increased demand after the Russia-Ukraine crisis
🎣 Gone Phishing

3 of the stories are true, and 1 is not, can you guess which?

  • Man disguised as old woman smears cake across front of Mona Lisa

  • Snoop dogg goes green (again?) buying stake in solar company

  • Beavers released and setup home… in London 

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Written by @Ollie and @Colin 

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The Triple Bottom newsletter reflect the opinions of only the authors who are associated persons of The Triple Bottom LLC and do not reflect the views of any of its subsidiaries or affiliates. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of The Triple Bottom LLC, or any of their subsidiaries or affiliates. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. 

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