“We are on a fast track to climate disaster: Major cities under water. Unprecedented heatwaves. Terrifying storms. Widespread water shortages. The extinction of a million species of plants and animals. This is not fiction or exaggeration. It is what science tells us will result from our current energy policies,”
Last week the IPCC finalized the third part of the Sixth Assessment Report, Climate Change 2022: Mitigation of Climate Change. Soon after its release, United Nations Secretary General António Guterres called the report a “file of shame”.
Our observations on COP26 in the fall of 20 reached similar, if not as scathing, conclusions.
The report did have some positive notes, the rate of growth of greenhouse gas emissions between 2010 and 2019 was lower than that between 2000 and 2009, showing there is a reason for hope. However, the sad reality is that the investment in the shift to a low-carbon world is about six times lower than it needs to be.
Simply stated, the probability of global voluntary policy as the primary means to address climate change has been proven to be virtually nil. While policy can help and is encouraged, it just isn’t enough.
We as financial stewards realize that our industry has the opportunity for leadership. And that is precisely what ZCM Sustainability does, beginning with our thick sustainable infrastructure finance products. We proactively seek those projects that scale to the problem and are repeatable by many. And when we find them, we deploy capital to support them – currently through both municipal and taxable investment-grade bonds.
In our view, ZCM Sustainability’s approach is intentionally well beyond traditional “ESG”. Our process starts with environmental performance because we realize the urgency climate change requires. Once we’ve determined a project is environmentally “thick”, we then consider its financial attributes – not the other way around.
Contact Todd Davis (312-368-1442 or tdavis@zieglercap.com) to set up a call where we can discuss the issues and work together to build the bridge to a sustainable future.
When it comes to ESG and environmental investing, our colleagues have expressed confusion about the options and frustration with the lack of progress towards sustainability.
To help educate and encourage discussion on these important topics, we launched the Thick Sustainable Infrastructure Finance Channel dedicated to sharing knowledge gathered from both research and experience. There are several videos including deep dives into climate change, case studies, and conversations with experts.
We regularly post new content so subscribe to stay up to date!