Calculating The Risk Of Renewable Energy Investment

The diversity of investors in renewable energy has increased, opening up the pre-existing range of investment opportunities in renewables to greater scrutiny of risk and return. Renewable energy is not an asset class in itself but is a sub-category within several asset classes. Key risks which may need to be computed into the APT model are: price interaction with fossil fuel technologies, complexity of storing renewable-derived commodities, unknown future risks of renewable technologies, the capital-intensive nature of renewable “real estate”, the differing levels of commercial readiness of renewable technologies, regulatory volatility in the jurisdictions in which renewable energy projects are based.

Categories Business & Finance

The Decrease Of Workers’ Productivity: An Overlooked Cost Of Climate Change

A rise in temperature will lead to a decrease in labor productivity (more dehydration, chronic health diseases and even death) which will further leading to a decline in economic activity. A critical factor to curtail losses in work capacity will be the extent of application of preventive strategies (such as cooling technologies, hydration, and work rotation) in outdoor and indoor work environment. Policy reforms should include long-term and short-term measures to mitigate the impact of heat on workers’ productivity. Long-term measures like reducing greenhouse emissions and short-term measures like providing clean drinking water at the workplace, good air conditioning, shade cover, and utilizing green architects to capture natural air and light.

What Is Mandatory TCFD Climate Disclosure?

TCFD stands for Task Force on Climate-Related Financial Disclosures. The TCFD’s overall aim is to encourage a greener and thus more stable international financial system. The TCFD disclosures allow investors and financial institutions to make more informed and clearer price risk related decisions. Making climate disclosures mandatory in alignment with TCFD’s framework encourages a greater international effort to move towards a greener economy.

Categories Economic Concepts

Is UBI a Sustainable and Green Policy?

Universal Basic Income (UBI) has shifted from a radical agenda to a relevant policy proposal, especially since the pandemic · UBI could have positive environmental impacts, such as reducing status-based consumption and facilitating more sustainable food practices · UBI must be introduced in a way that complements other policy shifts towards environmental protection and social justice

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Introduction To Ecological Economics

Ecological economics focuses on the need for human economic activity to not extend beyond our ecological ceiling whilst providing prosperity for all. It differs from neoclassical (more traditional) forms of economics in that there is not an emphasis on growth but rather ensuring planetary and societal welfare through redistributive and regenerative systems. Some current day examples of economic frameworks that use ecological economics are degrowth (Hickel & Kallis) and Doughnut Economics (Kate Raworth).

What is ESG and Why is it Becoming Increasingly Important for Companies?

In the past few years, there has been a strong increase in ESG reporting requirements around the world. ESG stands for Environmental, Social, and Governance. They are a set of standards for a company's operations that have become a popular way to indicate a firm’s sustainability performance. There are various issues reported by companies under each of the three pillars, comprising a variety of metrics. The environmental criterion considers how companies manage their environmental impact and use resources. Some of the factors include greenhouse gas emissions, water use, land-use, biodiversity, pollution management, and climate change adaptation. Social criteria focus on how the company fosters its people and engages with the wider society. Examples of social criteria include workforce diversity and inclusion, community engagement, customer satisfaction, and human rights. Governance considers the company’s internal system of practices and policies. Factors include business ethics and code of conduct, risk governance, supply chain management, and tax strategy.

Categories Business & Finance