Looks like there’s still hope for the plans.
Almost half of workers and consumers believe it is important for companies to disclose their environmental impact and climate-related risks, according to PwC. The 2024 confidence survey shows (PwC is a sponsor of this newsletter). When it comes to building trust in an age where people have so many ways to share information, Aidan Madigan-Curtis believes that honesty is urgently needed.
“Being honest about your business and being really transparent about what it is is doing, what is no what it does, what it stands for and everything in between is more important than ever,” says the venture capital firm’s partner. Eclipse Ventures. “Especially in a world filled with more misinformation and noise.”
Eclipse walks the talk.
The company, which manages about $4 billion, sits at the intersection of digital transformation and heavy industry: think transportation, manufacturing, and logistics and supply chain. Accounting for such industries approximately 75% In a world of greenhouse gas emissions, it invests in companies that use technology to reduce this pollution.
In recent years, more institutional investors have asked Eclipse about the carbon footprint of its portfolio. Madigan-Curtis and her colleagues thought that the positive effect of climate could be important over time.
“But when we were trying to find a (system) to measure that—how much carbon would be avoided or mitigated by leveraging modern technology in those industries—we couldn’t find it,” he tells me from Nevada.
So Eclipse built its own. Analytics with the company The Rho EffectHe developed the Eclipse Carbon Optimization (ECO) framework, which calculates the climate impact potential of a startup. Eclipse then applied ECO to 13 portfolio companies representing a cross section of heavy industry.
Bottom line, a 2023 report: By 2050, these companies could reduce annual carbon dioxide emissions by 172 million metric tons, or about 4% of total US CO2. departure today That is equal to the annual emissions of 22 million households.
“We found it really impactful to have that kind of standard,” Madigan-Curtis says of ECO. In addition to helping companies communicate their carbon impact to potential clients, Eclipse has been well received by other VCs interested in using the framework.
Madigan-Curtis also sees a path for any business looking to build trust in climate reporting. In his opinion, many companies can do better.
“If you look at reports from Amazon or Google, for example, about their carbon footprint, you can be very disappointed,” says Madigan-Curtis, who previously worked at Apple and the connected operations provider. to samsara.
Many carbon reduction targets and statements take offsets into account, he noted. “That’s pretty well known carbon offsets they are not the most reliable.”
True enough. An examination found that more than 90% of forest carbon offsets accepted by the world’s leading certification bodies are likely to be “phantom credits” that could worsen global warming.
Eclipse prefers the sharpness of carbon “inserts,” Madigan-Curtis explains. For businesses, this means doing things that reduce carbon, such as upgrading HVAC systems and investing in new technology that reduces energy consumption.
“Those are the kinds of actions we like to measure,” says Madigan-Curtis. “That’s why we’re promoting this framework, as opposed to the higher level of ‘set a target, then use carbon offsets to get there if you fall short’.”
To be fair, Google has changed course. Thus moves away From buying carbon offsets in bulk, the tech giant aims to achieve net zero emissions by 2030.
Madigan-Curtis sees a big difference in trade-offs for grafts.
“Consumers, investors and workers are smart, and a lot of people care about the climate and how companies are acting around the climate,” he says. With that in mind, Madigan-Curtis believes there’s plenty of room for companies to lead by doing “real work” to decarbonize and measure and report impact.
Those that do will “over time be the ones that get more investment, happier customers and more employee stickiness,” he predicts. “Because people are smart, and they really look under the hood.”
Ideally, it is that vehicle electric.
Nick Rockel
nick.rockel@consultant.fortune.com
IN ANOTHER NEWS
Third time unlucky?
Jamie Dimon has news for anyone who believes we’re going through a rough patch. World War III had already begun, the CEO of JPMorgan Chase he said at the Institute of International Finance. Dimon warned that the conflicts in Ukraine and the Middle East could be much bigger, putting into perspective fears of a US recession. In addition, Russia, Iran and North Korea – not to mention China – have joined forces to disrupt the post-World War II order. Dimon believes that peace may yet break out, but he is not in favor of it.
con job
Looking for a job? Be careful who you trust. They are job scams on the way upadvises Eva Velasquez, president and CEO of the Identity Theft Resource Center. A common trick: By posing as a recruiter online, the scammer tricks their victim into sending money or sharing personal information. Often, a fake job should ring alarm bells because it offers high pay for low-skilled, remote work. To be on the safe side, Velasquez suggests researching the recruiter or company in question and staying away from the links they send you. It seems like work in itself.
military intelligence
Washington doesn’t trust investors to do the right thing about China and AI. To stop China’s military from winning the technology arms race, the Treasury Department will soon block and monitor American financial and other support for AI, computer chips and quantum computing in China. It’s part of a broader push by the Biden administration to thwart Beijing’s high-tech plans, something that Democrats and Republicans can actually agree on. What a machine.
Political gains
No matter who wins next week’s presidential election, Americans can count on getting rich. So says a Bloomberg survey Among 350 economists, portfolio managers and investors, this shows a bullish outlook for the stock market. Nearly half of respondents predict markets will continue or exceed this year’s 2% monthly gains with Kamala Harris in charge. If Donald Trump wins, nearly 40% see growth accelerating. And while respondents believe housing would improve as an asset for Harris, they see a Trump presidency as more favorable to gold and Bitcoin. Voters, take your pick.
CONFIDENCE EXERCISE
“Most CEOs in America understand their duty not to mislead investors and take them seriously. But how many can honestly claim a similar understanding of their duty around consumer feedback? The Federal Trade Commission is now forcing the issue, and all executives need to pay attention.
For too long, consumer confidence has been undermined by the prevalence of false consumer feedback. This summer the FTC announced a new rule banning their use and empowering officials to seek refunds from consumers and, for known violators, civil penalties of up to $50,000. These rules have now entered into force.”
Online, fake consumer reviews have long been a feature, not a bug. No wonder the FTC eventually cracks down on those who create and spread them. That’s good news Adrian BlairCEO of the Danish review website Trustpilot, he participated in the FTC rulemaking process and took down more than 3.3 million fakes last year alone. For Blair, the new rule is not just a deterrent, but an opportunity for leaders to have the confidence to do business.
After all, opinions are very influential. Nine out of 10 consumers check before buying, and almost half trust what they read as much as a personal recommendation, Trustpilot research shows. In addition to misleading buyers, fake reviews have made life difficult for companies that don’t play such games.
For businesses and consumers alike, the fakes are ushering in a new era of trust, says Blair. If the feedback is credible, executives can use it to derive real insights, which can help companies build stronger relationships with customers. And of course, consumers can trust that they are getting an honest view of a product or service. Great reviews all around.
