Energy transition investments globally hit $1.1 trillion in 2022, breaking the $1 trillion mark for the first time, according to BloombergNEF. And a projected $1.7 trillion will be investing globally in clean energy in 2023, significantly more than the approximately $1 trillion expected to flow into fossil fuels, according to International Energy Agency.
In support of the transition to a low-carbon economy, Parnassus Investments, a pioneer in responsible investing, is removing its long-held exclusion on companies that make more than 10% of their revenue from nuclear power generation and/or related activities. We believe nuclear energy offers a critical source of fuel, with benefits that include low to no emissions, safety, and stability.
Your support of our small family farms has made a big impact on the environment and rural communities. Through our innovative farming practices, our cooperative of small family farmers has helped reduce GHG emissions, increase biodiversity and support local economies. We are making progress toward a more sustainable and equitable food system.
Croatan Institute’s recent report, Soil Wealth Areas: Place-based Financing for Conservation, Rural Communities, and Regenerative Ag, summarizes a USDA-funded, feasibility assessment regarding development of place-based financing districts in NC, CA, OR, and WI. The project engaged with 40 farms across 25K acres as well as a diverse group of partners, investors and stakeholders.
“I started Farm Holdings to restore as much land as possible and soon became obsessed with soil and soil erosion. We’re learning a lot about what you need to do to make regenerative ag work financially for investors, including partnering with farmers and ranchers around the collocation of clean energy with regenerative ag,” said Tim Luckow, founder
Regenerative agriculture has become a hot topic over the past few years. While it is more recently trending, our Edible Communities network has seen it being implemented at the local, grassroots level since we started writing more than 20 years ago. Regenerative agriculture offers an alternative approach that prioritizes both food production and environmental stewardship.
By investing in the development and scaling of alternative proteins, we could reduce GHG emissions, create economic opportunities, and contribute to sustainable development. In addition to the environmental benefits, they offer other potential advantages. Plant-based proteins can be produced with significantly less land, water, and other resources than traditional animal agriculture as well as improve animal welfare.
Global meat consumption is expected to grow over the next decade. The changing global climate poses significant risks not just to the growth, but to the fundamentals of the industry. From the rising price of feed to desertification of grazing lands and increasing regulation to reduce GHG emissions, climate-related risks require an extra layer of analysis for asset allocation in the sector.
2022 was a breakout year for organic agriculture. Consumer demand for organic food continued its steady rise, with strong prices for producers, rising land values and excellent returns for investors. Beyond these results, three significant trends were sharply apparent last year that will continue to affect not only organic farming but the entire agriculture sector including investor interest in sustainable farmland practices.
Trillium’s Sustainable Opportunities thematic suite of public equity strategies aims to address global sustainability challenges in three core areas: climate solutions, economic inclusion, and healthy living. As an intersecting theme, sustainable food and agriculture, cuts across these issues. Since 2008, Trillium has identified companies benefiting from the shift to a more sustainable economy.
