What do we mean by California is the future when applied to politics? Modern California politics has an uncanny knack of prefiguring what happens in the rest of America in about a 15-year timeline. In other words, what happened in California 15 years ago should be studied closely to see how it wi…
…e non-tech economy to the Everything Store’s rapacious and robotic approach to platform capitalism. Around the same time, Europe slapped both Facebook and Google with massive fines and legal uncertainty, focused on both tech’s use of data and its monopolistic business practices.
There is an alternative center of gravity that CEOs can rally around. The innovative and inclusive agenda for sustainable prosperity is the consensus strategy, at least officially, for most world leaders and global organizations. It is best encapsulated in the 17 Sustainable Development Goals, which were ratified by 193 nations, including the United States. The Paris climate agreement entered into force last year and now has the endorsement of 158 countries and 68% of global emissions; next year, countries will ratchet up their nationally determined contributions to tackling climate change. Along with the often overlooked Addis Ababa Action Agenda for financing development, adopted in July 2015, the three agreements set an architecture for the 21st century economy as much as the agreements at Bretton Woods in 1944 set up the second half of the 20th century.
So how are you going to play the great energy transition? What are you going to tell your kids and grandkids when they ask you in a decade or two, “Back in the teens, when the great energy transition was underway, which side were you on?”
The long-term drivers have a way of reasserting themselves in the face of short-term market swings. The 20-year energy transition is going to proceed in spurts and lags. “All we’re seeing is the manifestation of that lumpiness. It’s going to be a long transition,” Weatherley-White says. “But the transition itself is inevitable.”
Such universal owners are saying, ‘We do think the world will manage toward a two-degree budget,’” John Goldstein, a managing director at Goldman Sachs, told ImpactAlpha. Or, ‘The world will make material progress on the Sustainable Development Goals and make the investments required to do so.’”
e, calling for greater tran…orate “the realities of global warming,” the city’s Comptroller Scott Stringer said in a statement. State Street, with $2.47 trillion under management is sending a letter to companies it invests in asking them to disclose their climate preparedness strategies. Washington state’s public pension fund was an early mover on the issue, calling for greater transparency on climate change risk back in 2014.
Such big asset owners — those with assets of, say, more than $100 billion or so — are interested in risk. They are so broadly diversified that they “own the market,” if not the world. Forces that affect the market, up or down, will inevitably hit their portfolios. Unlike a day trader, they can’t just make bets on individuals winners and losers. And they can’t duck the coming dislocations. Social unrest, political instability, environmental catastrophes, wars — bad for long-term asset values. Owning the world means institutional asset owners have a stake in its viability. For such “universal owners,” there are no externalities, positive or negative.
Solar energy could supply 23 percent of global power by 2040, according to Carbon Tracker. (ExxonMobil sees all renewables supplying only 11 percent by then.) Electric vehicles could capture a third of the transport market by 2035, the report found. (BP’s EV forecast for that year: 6 percent.)
…by Europe’s five major utilities from only an 8 percent growth in renewables between 2008 and 2013. A separate Goldman Sachs report last year forecast solar and wind will generate more new energy capacity in the next five years than the shale-oil revolution did in the last five.