How a Miami company’s limiting more CO2 than Tesla
This is the Feb. 8, 2022 edition of the Opportunity Miami newsletter, which we send every Tuesday. Click here to subscribe to get our weekly updates in your inbox.
When it comes to addressing sea level rise and climate change, efforts have generally fallen into three buckets: civic activism, government policy reform, and innovation.
It’s in that third bucket that Endeavor Miami, which is focused on helping promising entrepreneurs, and Future of Cities, which harnesses technology to create more resilient cities, are joining forces.
The two organizations recently announced that the next EndeavorLAB will focus on supporting entrepreneurs leading early-stage climate tech companies driving the transition to a carbon-neutral economy. Applications will be accepted for the two-month accelerator from local entrepreneurs — with a focus on minority-led startups — until February 13. The program will begin March 8.
Around the world, efforts are underway to reach net zero by 2050, transitioning the global economy to one that emits no more carbon dioxide than it removes. Scientists say if we don’t do this in the next 28 years, our planet will warm to dangerous levels.
But, increasingly, this shift is viewed as a generational business opportunity. On a recent Opportunity Miami podcast, Clay Dumas, who leads the $800 million venture fund Lower Carbon Capital, called it the “single biggest opportunity” since the early 20th century.
Bill Gates wrote last year that the places building “great zero-carbon companies and industries will be the ones that lead the global economy in the coming decades.” On our podcast, Patty Wexler of Starlight Ventures and Kiel Berry of Mission One Capital, who both call Miami home, shared that South Florida can be one of these places.
With all of this in mind, it was striking to see London-based investor Christian Hernandez post a Twitter thread last week declaring a Miami company is leading the way. Hernandez is co-founder of the venture firm 2150, which is investing in companies building our net zero future. He was also a recent Opportunity Miami podcast guest.
Take a minute to take in the Twitter thread from Hernandez. He writes about Miami-based Watsco, one of the largest servicers and installers of HVAC and cooling systems in the U.S.
“I’ve fallen in love with what I think could be one of the most impactful companies in our fight against climate change,” he wrote. “It’s not building giant direct air capture machines, or genetically modifying kelp to absorb more CO2…it’s powering thousands of contractors to upgrade heating and cooling in millions of US homes.”
Hernandez cites Princeton research, which asserts that a critical tool to reach net zero will be converting inefficient HVACs in homes to more efficient heating and cooling systems, like heat pumps. Watsco is publicly traded and has some $6 billion in annual revenues.
By its own account, tweeted Hernandez, Watsco has reduced or avoided 11.1 megatons of CO2. To put that in perspective, he added, Tesla stated it mitigated 5 megatons of CO2 in 2020.
“Watsco isn’t included in the Energy Impact Climate Tech index…but I think it should,” Hernandez continued. “HVAC installers…$6 billion revenue…$11 billion market cap… 11 megatonnes…who would have thought.”
It’s remarkable and encouraging that Watsco, a multi-billion dollar company that’s doing more than Tesla to reduce CO2 going into the air, is right here in Coconut Grove.
In full disclosure, I sit on Endeavor Miami’s board with Watsco President A.J. Nahmad. Watsco is a company I’ve known for years, and I have friends there. But I’ll be the first to admit: I hadn’t connected the dots. Nor had many of us in Miami. Instead, it took a venture investor sitting in London to show what’s being led right before our eyes.
Before we close out this week’s newsletter, two quick notes:
- First, at Opportunity Miami, we’re exploring broadband access. As of 2019, 23 percent of Miami-Dade County households weren’t online. Congress’s $65 billion investment to get everyone connected gives us a once-in-a-lifetime opportunity to make home internet access as common as running water and electricity. With that in mind, it was great to see Miami-Dade Mayor Daniella Levine Cava share plans last week to launch a door-to-door campaign to get everyone online.
- Second, tech commentators Kara Swisher and Scott Galloway are coming to Miami Feb. 14–16 to host the PivotMIA conference. The price tag to go is a hefty one, but to help a little bit they’re offering a discount code for our readers: BEACON30.
As always, we want to hear from you. Email us at next@opportunity.miami or engage with us on social media. Please invite friends to subscribe to this newsletter here.
Have a great week,
Matt Haggman
Opportunity Miami
@matthaggman
Photo (top) by Sigmund on Unsplash. Opportunity Miami is powered by the Miami-Dade Beacon Council.
