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Yahoo
5 days ago
- Business
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OBBB signing creates ‘compelling event' for corporate solar initiatives: Redaptive CEO
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. Corporations looking to address ESG and sustainability concerns have had to navigate a changing political landscape, and the now-signed One Big Beautiful Bill Act has only added to those altered calculations. The solar and wind industry was particularly hampered by the final bill text, as projects must begin construction within 12 months of the bill's signing to qualify for the Inflation Reduction Act's investment tax credits, according to a Crux analysis. Analysts at Jefferies predicted that utilities with 'renewables-heavy' plans may accelerate their wind and solar projects to have them qualify for the rapidly sunsetting credits. Companies looking to reach sustainability goals and find energy efficiency and resiliency at their facilities must similarly decide whether or not to accelerate or continue projects, according to Arvin Vohra, CEO of energy-as-a-service company Redaptive. Redaptive decarbonizes commercial and industrial real estate, and Vohra told ESG Dive that while the economics of solar may change in the short term, it should rebound in the medium to long-term. However, corporations have a short clock to move forward with planned initiatives, if they hope to attain the credits. 'We do have a compelling event now,' Vohra said in an interview. 'Some customers need to make decisions really fast on whether they want to move forward, or not, so construction can commence.' Editor's note: This interview has been edited for length and clarity. ARVIN VOHRA: Our deal volume has actually been pretty good. We've been doing this since 2014 so we've been in all kinds of administrations. Fundamentally, what Redaptive sells, and what we believe, is that sustainability is a cash flow positive exercise. We pitch in terms of dollars and cents, [and say,] 'Here's the business value that we're providing you as our end customer.' As interest rates are higher, budgets are tightening. Companies are looking to save money, and Redaptive provides a solution that meets that need. So we've actually seen pretty good conversion in this market. Yes, absolutely. The One Big Beautiful Bill directly took a hit on solar, and so [we expect to] see solar not pencil out as much [financially] on our clients' locations. That's something that we do as an expansion product for customers that start off with an electrical mechanical upgrade with us. That being said, electrical mechanical infrastructure is so essential to these buildings — you need to have lighting and HVAC to run a building. One thing that's guaranteed is that, at some point, electrical mechanical assets fail — they get old, they consume more energy than they're supposed to. So, that's something that we'll double down in and focus on, which is our roots. Solar was an expansion product, and it had promise for us, but I think you're just seeing a strategic shift on what we enable for our customers internally in reaction to the bill. I'm not going to sit here and say, it's business as usual and everything's great. We are shifting as a result of the change that we've seen, but it's not one that's concerning for me from a firm business viability standpoint. Well, here's the thing, when I say [solar] is not going to pencil out, [or be profitable]. I mean that in a very short term way. Because I actually think that in the medium term, solar is going to pencil out, but not for a reason that anyone's probably very excited about. If you have a 30% [investment tax credit], and that ITC goes away, of course there's a 30% impairment in the economics, and it's going to be harder for projects that would have [been profitable] to pencil out. In certain areas, where utility rates are high, it's going to pencil out either way. It may not be as awesome economically, but it's still going to be a cash flow positive value proposition for you to go and put solar on your roof. From a macro standpoint, here's what's happening from my viewpoint. You have a grid that's effectively built in the 1950s, and you're putting power onto this grid. You can't bring power online fast enough. So, we have a supply issue, and that supply issue is exacerbated by bringing back manufacturing to America and AI in America. And geopolitically, globally, we want to win the AI war, if you will, as America. So you need to have energy for that, and there's only so much that this grid can take. So, what's going to happen is AI — which has a really good return on their investment, a lot of money's flowing there. People are making good margins in tech. They're very price inelastic to the price of power. You can double the price of power and AI is still going to grow. The punchline is that utility rates are going to go up [and potentially] up by 25-30%. So in the near-term solar is not going to [be profitable], in the longer term solar is going to start to pencil out again, but it's going to be because utility rates are so much higher than they are today. And there's just no other way. There's a lot less of an emphasis on solar. Now, have we seen the full impact of that? Not necessarily right now, because it just got signed, and as long as construction commences in a certain point of time, we'll be in a position where we can monetize the credits for our customers. But longer term, what's happening is clients are looking more on the efficiency side, until the utility rates go up, and once the utility rates go up, then more solar is going to start to pencil. All of our projects are on track to start construction by that date in our pipeline. We do have a compelling event now. Some customers need to make decisions really fast on whether they want to move forward, or not, so construction can commence. As you can imagine, Redaptive is not in the business of taking the risk of monetizing the [investment tax credit for a client], when they cannot sign for the next six months. They need to sign now. If they don't decide to move forward right now, it's gonna be very hard for them to commence implementation in time. The general vibe right now is, if something makes sense to do, from an economic standpoint, [clients are] going to move forward and get it done prior to the window closing. That's what we're seeing, and I think that's the focus right now as well, in terms of the conversations we're having with our customers. What's going to happen after what's immediately in the pipeline, in my opinion, is that those conversations are going to shift more towards efficiency and lighting and mechanical. I don't have the data points to substantiate that, but I've done this now for 12 years, and I've seen different cycles. The rhetoric is what's changing. We've always sold based on the cash flow positive, or I'll call the total lifetime value based on resilience. There was a point where, particularly, we were selling cashflow positive and sustainable, and now we're going back into selling cash flow positive. I joke with my team internally, two things that are guaranteed in addition to death and taxes, is something cash flow positive is going to sell and electrical mechanical infrastructure in buildings will fail at some point. We're focused on those two things, and those two things are administration agnostic and human opinion agnostic. I don't care whether you believe in climate change or not. Our mission is sustainability-oriented as a business, and we're very passionate about the sustainable impact of what we do. But in the end, you can't deny the value proposition of this being something that's cashflow positive, and you need to take care of your electrical mechanical infrastructure to actually be able to build it. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
US companies quietly maintaining, boosting sustainability investments in 2025: report
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. Dive Brief: Despite the political backlash, U.S. companies have either maintained or increased sustainability investments since the beginning of 2025, according to a survey of 400 global executives at U.S. corporations released Tuesday by sustainability ratings and compliance firm EcoVadis. Nearly half of the respondents (48%) said their company's sustainability investments remain unchanged, and 31% said their company is investing more in sustainability this year, 'but promoting less.' Another 8% of respondents reported their company is still making sustainability investments but not talking publicly about it. The EcoVadis 2025 U.S. Business Sustainability Landscape Outlook found that despite the Trump administration's recent shifts on climate and sustainability policy, companies still see supply chain sustainability as an operational value-add. However, they have been less likely to publicize those efforts, or are 'greenhushing.' Dive Insight: EcoVadis said the 'greenhushing' occurring alongside increased investments shows many companies 'see it as a behind-the-scenes lever for long-term growth.' More than 6-in-10 respondents (65%) reported viewing supply chain sustainability as a 'competitive advantage,' according to the survey. The firm surveyed executives at U.S. companies with over $1 billion in revenue who are responsible for decision-making across their company's procurement, sustainability, supply chain, finance, risk and compliance and IT departments, according to the report and an accompanying press release. Among executives at the director and VP level, 62% of respondents said they believe 'supply chain sustainability helps attract and retain customers.' That view was shared by 59% of C-suite executives who responded. 'Even as the debate over business sustainability heats up, executives are focused on the reality — sustainability is what keeps supply chains running and customers on board,' EcoVadis Co-CEO Pierre-François Thaler said in the Tuesday release. Only a small minority of respondents surveyed said their companies have either decreased sustainability investments in 2025 (7%) or are making the minimum investments required for compliance (6%). The belief in sustainability as 'directly' supporting business growth and development is shared by 52% of finance professionals who responded, and 29% of finance professionals believing it's 'financially neutral.' 'Corporate leaders agree that supply chain sustainability isn't just about values or regulations — it's also about staying competitive in a shifting global market,' the report said. While the Securities and Exchange Commission has reversed course on its climate-risk disclosure rule and withdrawn a proposed ESG disclosures rule, 47% of C-suite executives believe that rolling back ESG oversight will lead to increased supply chain disruptions, EcoVadis found. Thirty-five percent of all respondents said ESG regulatory rollbacks 'could backfire,' and 28% view the rollbacks as risky. A recent survey of 125 large U.S. and multinational companies by The Conference Board found that 80% of respondents had altered their ESG strategies since January in response to policy changes. However, just 8% of respondents to The Conference Board survey reported doubling down on ESG investments. Recommended Reading Companies are recalibrating ESG strategies in response to US policy shifts: report
Yahoo
11-06-2025
- Business
- Yahoo
Schneider Electric has a new CSO for the second time in 2025
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. Schneider Electric has appointed Esther Finidori as its new chief sustainability officer, the company announced last week. Finidori assumed the role June 1. Finidori previously served as the vice president of strategy for the energy and tech company's operations in France and has held several sustainability-focused positions throughout her over nine-year tenure at Schneider Electric. She steps into the CSO role after a short stint by former sustainability chief Chris Leong, who started the job at the beginning of the year. Leong departed the company earlier this month to take on the dual role of executive vice president and chief marketing and innovation officer at Ecolab, a company that helps clients improve environmental performance. Finidori first joined Schneider Electric in 2016 as a director overseeing sustainability across its supply chain and its CO2 strategy, per her LinkedIn profile. She then went on to become vice president of the company's global environmental strategy before running Schneider Electric's France operations, which included its overall strategy, sales and sustainability. Prior to her time at Schneider Electric, Finidori worked as an environmental consultant, focusing on the clean energy transition and green finance. She has also served as a member on the European Commission's Platform on Sustainable Finance, which gathers sustainability experts to help the Commission develop sustainable finance policies, including its taxonomy regulation. Schneider Electric said Finidori 'brings a wealth of experience and a strong track record in sustainability and strategic leadership to her new role,' in a June 5 release. The new CSO will also be joining Schneider Electric's executive committee, which the energy company said aims to 'effectively develop and deploy the new sustainability strategy of the company, reinforcing its business relevance and leadership on innovative social and environmental practices.' Schneider Electric was ranked the world's most sustainable corporation of 2025 by the Corporate Knights Global 100. This list ranks the top sustainable corporations annually and is published during the World Economic Forum. Editor's note: EcoAct, a subsidiary of Schneider Electric, is a sponsor for an upcoming ESG Dive and CFO Dive event. Recommended Reading Schneider Electric purchases IRA tax credits from solar manufacturer
Yahoo
05-06-2025
- Business
- Yahoo
BlackRock removed from Texas divestment list after climate alliance exits
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. The Texas Comptroller's office has removed BlackRock from the state's list of companies who allegedly 'boycott the oil and gas industry,' according to a Tuesday press release. State Comptroller Glenn Hegar credited BlackRock for exiting the Net-Zero Asset Manager initiative and downgrading its participation in Climate Action 100+, which he said was 'directly related to [the state's] listing process' in a June 3 statement accompanying the update. BlackRock was among the initial 10 firms named in the divestment list published in August 2022 and, despite quarterly updates to the list, was the only United States-based firm listed and banned from doing business with the state. The divestment list was created by a 2021 Texas law banning the state from doing business with companies that 'limit commercial relations' with fossil fuel companies. After Hegar added London-based bank NatWest Group to the list in August 2024, the list had grown to include 16 companies and 350 investment funds that qualified for divestment. After the June 3 update, the list stands at 15 companies — all based outside of the U.S. — and 332 funds. Hegar said, in addition to BlackRock's changed participation in industry climate groups, the nation's largest asset management firm 'dramatically reduced the number of fund offerings that prohibit investments in oil and gas' and has 'acknowledged the real social and economic costs, both in Texas and globally, that come from limiting investment in the oil and gas industry.' BlackRock shifted its membership in CA100+ to a smaller international arm of its business in February 2024; more than 70 investors have left the group since House Republicans began probing its membership. BlackRock's exit from NZAM this January prompted the United Nations-backed group to suspend all operations while it undergoes a full review of its program. The Texas comptroller said his team hoped to create a process 'that gave companies a clear understanding of how they got on our list and a definitive path to removal' and BlackRock took steps to ensure they were removed. 'This is a meaningful victory and validates the leadership Texas has shown on this issue, which has seen a monumental shift in the way companies, governments and individual Americans view the energy sector,' Hegar said. 'While it took [BlackRock] longer than others in the financial sector to make the shift, the end results are what matter.' The removal of BlackRock from the state's divestment list comes after the Texas Permanent School Fund pulled $8.5 billion in funding from the asset manager to comply with the state law. At the time, a BlackRock spokesperson told ESG Dive that the divestment was 'arbitrary' and ignored the firm's '$120 billion investment in Texas public energy companies.' Hegar said Tuesday that BlackRock has shown 'real commitment to overall policy changes and a desire to act as a trusted partner in the growth of the Texas economy' by supporting the creation of the Texas Stock Exchange and "limiting support for activist shareholders to curtail fossil fuel investments.' However, Hegar said that assessment and those actions are 'unrelated to [the state's] listing decision.' While BlackRock is no longer on the divestment list, the firm is still a defendant, along with Vanguard and State Street, in a lawsuit filed by Texas Attorney General Ken Paxton accusing the asset managers of forming a 'cartel' to artificially restrict the coal market. The nation's largest three asset managers have denied the allegations and filed a joint motion to dismiss the lawsuit, though the Federal Trade Commission and Department of Justice issued a joint statement last week siding with Paxton and 10 other Republican-led states' view of the case. BlackRock is also facing scrutiny from Congressional Democrats for its climate alliance walkbacks. The firm was one of 12 major U.S. banks and financial institutions that received a letter from Democratic lawmakers which sought to understand where the company's current climate commitments stand. BlackRock did not immediately respond to a request for comment. Recommended Reading Texas AG drops probe of major US banks following NZBA exodus
Yahoo
03-06-2025
- Business
- Yahoo
Barclays mobilized over $687M in climate tech investments since 2020: report
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. Barclays' climate investment arm has enabled 508 million pounds (nearly $687 million) in investments focused on climate technology and innovation since 2020, the British bank said in its latest impact report Monday. This figure includes Barclays Climate Ventures financing 203 million pounds (around $274 million) of the bank's own equity and facilitating a further 305 million pounds (around $412 million) through third-party investments, per the bank. Barclays said it led or co-led 61% of the funding rounds it participated in, and every one pound invested through Barclays Climate Ventures unlocked an additional 2.18 pounds from third parties. The fund has a mandate to invest half a billion pounds into equity capital in climate tech startups between 2020-2027. The London-based bank said the investments will help 'address a systematic growth-stage financing gap' that is often associated with developing climate tech companies. Steven Poulter, head of Barclays Climate Ventures, called climate tech 'key to delivering the next generation energy system,' in a June 2 release, adding that it helps address climate change while 'supporting a successful and growing economy with affordable and resilient energy.' 'New climate tech is needed to improve the resiliency of the energy grid, increase energy efficiency, and diversify energy supply, including the provision of alternative energy sources for sectors of the economy where energy demand can't viably be met through electrification, such as aviation,' Poulter said. Since launching in 2020, Barclays Climate Ventures has backed over 20 companies focused on climate innovation, as of December 2024. The subsidiary has supported a wide range of climate tech solutions through its investments, including long-duration energy storage, hydrogen and carbon management technologies, according to its website. Barclays impact report said the bank prioritizes investments in technologies that are both commercially scalable and can help unlock the clean energy transition for high emitting sectors, especially those where Barclays has substantial client exposure. These sectors include energy and power, real estate and food and agriculture. In addition to financial backing, the bank gives early and growth stage startups access to its in-house climate tech escalator, which helps climate tech companies develop their product and scale in size by offering them dedicated, customized support. Such support includes counseling from Barclays board members; advice from senior bankers, policy experts and sector specialists; access to the bank's client base and exposure through events, marketing platforms and communications. Barclays' impact report comes shortly after its Group Head of Sustainability Laura Barlow stepped down from her role in January. At the time, a Barclays spokesperson told ESG Dive that Barlow would remain with the bank in the capacity of a senior adviser while her responsibilities would be taken on by Daniel Hanna, who serves as Barclays' Group Head of Sustainable and Transition Finance. The restructuring came against a backdrop of banks and financial institutions facing heightened scrutiny over their sustainability efforts, particularly in the U.S. Recommended Reading Barclays' head of sustainability steps down as sector scrutiny heats up Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
