Climate Scientists, SEC Probes, US Census Data, and a Methane Hunter

Here are 5 ESG insights you might have missed this week:

1. Is Your Fund Serious About Climate? Show Me Your Scientists.-

The grab for scientific talent is underway across the financial sector.
Climate-focused funds “are coming to the realization that this is a mega-scale problem that requires deep understanding of the science behind it,” says Stephan Nicoleau of FullCycle Capital Partners. He says the climate-solutions fund draws on hundreds of scientists, technologists and engineers across its ecosystem.
The boomlet in climate-science expertise started in the risk-driven insurance industry, which latched onto climate expertise to model weather risk. VCs, who have long valued engineering chops, are collecting talent in climate analytics, environmental engineering and organic chemistry as the contours of climate challenges, and opportunities, come into focus.
Link to Source: https://impactalpha.com/is-your-fund-serious-about-climate-show-me-your-scientists/

2. US Authorities Investigating Deutsche Bank’s DWS Group Over Sustainable Investing Claims-

“The first few cases will be very instructive”
According to the WSJ’s report, federal prosecutors and the Securities and Exchange Commission are probing DWS after the company’s former head of sustainability said the firm had exaggerated its use of sustainable investing criteria to manage assets.
The new SEC team will “actively” look into misleading claims made by firms, material misstatements and tips previously received from whistleblowers.
Link to Source: https://www.cnbc.com/2021/08/26/us-authorities-investigating-dws-groups-sustainable-investing-claims-wsj.html

3. Team ESG fights back-

Responding to the most popular counterarguments to FT's piece about Tariq Fancy and the case against ESG.
ESG investing is a form of risk management. This is by far the most common response. It says: ESG strategies outperform because they bet on companies that are prepared for risks that other companies miss. This argument drives me absolutely nuts. Money managers are in the risk management business. Do we think they have not noticed that, say, California is on fire?
You trust the politicians, not business people, to get big things done? HA HA HA. Government does get things done, when citizens drop their cynicism. And while I’m at it, I’ve met a CEO or two I wouldn’t let babysit my dog.
Link to Source: https://www.ft.com/content/df51be3e-c9e1-44f1-8d78-91584c049d9d

4. A Methane Hunter Finds Leaking Gas That Threatens EU’s Climate Goals-

A special infrared camera captured more than 70 plumes from pipes, oil fields and storage units operated by one of the European Union’s biggest oil and gas producers.
“It felt like every well in Romania is leaking,” said Turitto, who’s traveling around Europe with the 100,000 euro ($118,000) camera to track down fugitive releases. “Tanks were rusted out. It was impossible to document all the methane emissions.”
The EU is relatively free of the kinds of large-scale methane leaks that have been detected through satellite imagery in countries from Kazakhstan to Australia. Over the past two years, those bigger plumes — typically with emissions rates in excess of 5 tons per hour — have been spotted on only about a dozen occasions in Europe, compared with more than two thousand globally, according to estimates from geoanalytics firm Kayrros SAS.
“It’s literally under the radar”
Link to Source: https://www.bloomberg.com/news/articles/2021-08-25/infrared-cameras-detect-methane-leaks-across-romania

5. People Keep Moving To The Worst Places For Climate Risk-

Lots of people are flocking to Arizona, Florida, and Texas—but no one is moving to Duluth, Minnesota.
In Phoenix, where a drought has lasted for 27 years so far, the population continues to expand. Over the last decade, Phoenix grew faster than any other American city, and Arizona was one of the fastest-growing states.
In Michigan, on the other hand, a state that’s likely to be relatively less likely to be impacted by climate change, the population grew slowly. A recent Census Bureau map shows the overall trend: Many Americans have been moving to areas that are likely going to be harder hit by climate impacts.
Link to Source: https://www.fastcompany.com/90668484/people-keep-moving-to-the-worst-places-for-climate-risk

One more thing: An 8-minute video from The Economist on whether hydrogen is the fuel of the future.

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