Tariff uncertainty, inflation and high interest rates are challenging U.S. utilities’ renewable-energy investments. Long-term decarbonization remains critical, however, for sustained market outperformance.

Oil and gas are in, renewables are out — at least, that’s what the headlines say. But what’s really happening in energy markets? We take a closer look at shifting U.S. policies, investor reactions, and how global energy trends might shape the future.

Energy-hungry data centers are the backbone of AI. And as big tech companies look to meet rising demand for AI capabilities, their emissions are ticking up. So, are net zero ambitions at risk? Or can they be saved by a decades-old energy source in a new guise?

Heat waves are getting longer and more intense. And although mitigating climate change will remain a long-term priority, investors will also be thinking about adaptation technology. The humble air conditioner is an off-the-shelf solution, but does it have any downsides?

Chronic heat is causing stress on workers and driving the need for adaptations to current working conditions. Using geospatial intelligence, we assess the potential impact of heat at the asset level for U.S. constituents of the MSCI ACWI Investable Market Index. 

Since the introduction of the U.S. Inflation Reduction Act, there has been an influx of investments from companies upstream from the power-generation value chain. Understanding these energy-transition trends could be key in identifying opportunities. 

The Inflation Reduction Act provides large incentives for a shift to clean energy in the U.S. MSCI teamed up with the RMI to investigate its effects on utilities.

U.S. utilities are increasing investments in solar, wind and battery installations. Investors can learn more about a company’s transition strategy from these energy-generation plans than from tracking past performance on emissions. 

Everyone is talking about AI, but on today’s episode we focus on the technology’s potential to disrupt health care. Then, we switch things up to look at how wildfires are exacerbating physical, legal and financial risks for electric utilities in the U.S.

The SEC’s climate disclosure rule is finally here. It’s been a journey, one akin to a film drama full of plot twists, cliff hangers and edge of the seat moments. So in honor of the drama, this week we do a film review of sorts on this wide reaching regulation - going into the plot, the actors involved, and how the industry is likely to be affected by it.

The Securities and Exchange Commission (SEC) have finally unveiled their plans for climate-related disclosures. The rules may create more transparency for investors and help narrow the disclosure gap between the U.S. and other developed markets.  

COP28 concluded with an agreement for countries to transition away from fossil fuels, marking a historic pivot away from the primary sources of energy that have powered society for nearly 200 years. How can countries — and investors — address these goals? 

This week, we are returning to five stories we have already covered to see what progress has been made (if any!): The Adani Group and its attempt to address a short seller report that questioned the group’s governance that led to a massive loss in market share; the United Auto Workers strikes and the continued struggle in the auto industry; the Inflation Reduction Act and the trillions of dollars of capital is supports; what the EPA’s methane rule has done for the gas industry in the US; and how Exxon has changed after having three seats of its 12 member board taken by over by Engine No. 1, an activist investor worried about carbon emissions.

Our planet’s hottest days on record were recorded July 3 to July 5. Global average temperatures rose to a new high of 62.9 Fahrenheit. And even as the days get less sweltering, we all seem to be collectively looking around wondering what might happen next month. It is a collective fear that doesn’t seem to have rattled the market. Even so, today we discuss what the ever increasing temperatures mean for the companies you invest in and what cities might be most affected in the coming decades if the world continues to warm.

As temperatures rise, so do the risks from extreme heat. Using hazard percentiles compared across climate scenarios, we assess the cities and sectors that could be most impacted and the costs they could face. 

To meet net-zero ambitions, it looks like we’re going to need a whole lot of solar energy, and fast. And a complex value chain is bracing for soaring demand. In this episode, we work through the risks and opportunities for investors and for companies (and it’s not only the ones you’re expecting).

The Colorado river is shrinking and the tens of millions of Americans that rely on the water source are having to deal with the possibility of imposed water cuts. The urban sprawls that have peppered the desert are also in competition with the industries that operate in the area and use the water from the Colorado river: agriculture, semiconductors, and energy. In this week’s episode we discuss what happens when companies no longer have access to the water they need to operate.

What if there is a water utility that saves a city millions of gallons worth of water a day, but also increases its carbon emissions by a large amount? What if a company makes a product that saves people, but it allegedly uses forced labor to do so? Do you avoid these companies and products? Are you a follower of the Ethics of Ambiguity in that the means of production is the same as the ends? In this episode, we discuss the conflicts that arise for investors, impact investors especially, due to the inherent conflicts that are present in the operations of some companies.

Emissions-intensity metrics can help compare the relative contributions of different holdings to a portfolio’s carbon footprint. However, understanding the reasons behind a firm’s changing emissions is key to identifying sustained reduction trends.

The EU taxonomy for sustainable activities and U.S. Inflation Reduction Act may give power generators in the EU and U.S. incentives to invest in low-carbon power.

The Inflation Reduction Act may help utilities and energy firms reduce direct and indirect emissions through tax-credit incentives designed to scale up the deployment of renewables and accelerate development of frontier decarbonization technologies.  

A massive provision called the Inflation Reduction Act was passed in the US Senate on August 7 and is making its way to US President Biden. If signed into law, it hails as one of the largest climates, health care and tax bills ever passed in the US. We discussed some of the most impactful provisions in the climate and energy security provision of act through an ESG lens. We will discuss the changes to the tax code and healthcare in later episodes.

The US Customs and Border Protection agency released operational guidance for importing companies on how to comply with the Uyghur Forced Labor Prevention Act (UFLPA), which was signed into law on December 23, 2021. The big ask for companies was for more supply chain transparency. We discussed what UFLPA means for the world’s economy and why supply chain transparency is still so difficult. Then we discussed the most recent ruling US Supreme Court ruling that limited the Environmental Protection Agency's ability to regulate greenhouse gas emissions from power plants.

Every fund manager with an ESG fund seems to be under routine but detailed examination by financial regulators into their use of “ESG” in said fund label or how they incorporate ESG in their investment process. We explore what this means for the industry and why it matters. Then, we discuss the current state of the wind energy industry, exploring the companies that are leading the chart for a cleaner energy world.

Use our chart to examine which companies have the highest exposure to wind power.

A USD 1 trillion deal is scheduled to be signed into law by US President Biden on Monday, November 12. The deal, in the White House’s words, is imperative for the US to meet its commitment to reduce U.S. emissions by 50-52% from 2005 levels in 2030, create a 100% carbon pollution-free power sector by 2035, and achieve a net-zero economy by 2050. It allocates funds toward updating the US transportation system, its energy infrastructure, its climate resiliency, and its water system. We discussed how these plans move from the political stratosphere to the more habitable land of economic stimulus.

It is climate week this week in New York city. So, we decided to throw a climatepalooza for you all by examining the climate plans of three companies in the most the most pollutive industries. In this episode, we give you a roadmap for the climate plans that have been coming out this week and tell you what to pay attention to as you sort through a company’s emissions reduction plan.