A recent posting by Jessica Ground—Global Head of ESG at the Capital Group—on the Harvard Law School Forum on Corporate Governance shows that investors are slowly increasing their efforts to support companies that have Environmental, Social, and Governance (ESG) characteristics. However, a separate posting on the forum’s website by Prof. Lawrence Cunningham—Georgetown University School of Law—draws attention to a sharp distinction between institutional investors’ appetite for ESG-related investing and that of individual or “retail” investors. In her June 17 post on the forum, Ground said that about a quarter of investors continue, as in 2021, to describe ESG as “central to their investment approach (26% in 2022 vs. 28% in 2021).” Cunningham, posting on the forum on June 23, said, “It is well-known that institutional investors vote for environmental shareholder proposals at about twice the rate of individual investors.” According to Ground, investor stances have shifted this year to one of “acceptance” (34% vs. 32% in 2021) and “compliance” (29% vs. 24% in 2021). Cunningham cited a Gallup Poll of 953 U.S. adult individual investors that found most “prioritized the expected rate of return and risk for potential losses over environmental and other issues.” Ground added that the percentage of global ESG investors rose to 89%—up from 84% in 2021. Cunningham stated on the other hand that “less than 2% of mutual fund money is invested in ESG funds.” According to Ground, only 13% of global investors say ESG is a temporary “fad.” Meanwhile, Cunningham cited a survey of 1,228 retail investors conducted by NORC at the University of Chicago and the FINRA Investor Education Foundation in which “individual investors identified environmental aspects of a potential investment as the least important consideration compared to financial, governance, and social factors.” Challenges in ESG investing include inadequate standardization of information and difficulties getting high-quality data. Source: https://corpgov.law.harvard.edu/2022/06/17/esg-global-study-2022/

The US Energy Information Agency (EIA) released its first short-term energy forecast for 2023–2024 in January. With flat economic growth expected in 2023, total US energy consumption is predicted to fall by 0.9%. Total US energy consumption is expected to rise by 1.0% in 2024. Global production of liquid fuels is forecasted to average 102.8 million barrels per day (b/d) in 2024, up from 100.0 million b/d in 2022, driven by large growth in non-OPEC production. Global consumption of liquid fuels is expected to rise from an average of 99.4 million b/d in 2022 to 102.2 million b/d in 2024. With oil production expected to surpass consumption, global oil inventories are expected to increase over the next two years, putting downward pressure on crude oil prices. Natural gas production is predicted to grow with the completion of pipeline infrastructure expansions in 2023 and 2024. EIA expects the share of electricity generation from coal to fall from 20% in 2022 to 18% in 2023 and to 17% in 2024. The decline should be partially offset by a forecasted increase in the share of combined utility-scale solar and wind generation from 16% in 2023 to 18% in 2024. Source: https://www.eia.gov/outlooks/steo/

The nation of Nepal reported in the Year of the Tiger (2022) that it had tripled its wild tiger population through a several-years-long effort led by the Nepalese government, local communities, youth, enforcement agencies, and conservation partners. Here are the numbers: Nepal's National Tiger and Prey Survey 2022 reported a near-tripling of the nation’s tiger population from a baseline established in 2009—an increase of over 190%. The survey covered 18,928 square kilometers (1.892 million hectares)—about 12% of the country—and involved 16,811 days of field staff time to complete. Nepal was faced with a decreasing tiger population estimated at 121 individuals in 2009. The 2022 survey reported a wild tiger count in Nepal of 355 individuals. A target to double wild tiger populations, known as Tx2, was established by tiger range governments in 2010 at the St. Petersburg International Summit on Tiger Conservation. Part of Nepal’s comeback strategy involved “people-centered tiger conservation,” which involved such initiatives as compensating farmers for livestock lost to predatory tigers. World Wildlife Fund-US’s Ginette Hemley noted that the previous Nepalese survey in 2018 saw a near-doubling of the wild tiger baseline population. “It is remarkable to see what twelve years of high-level political commitment, dedicated conservation action, partnership with local communities, and collaboration between the government and conservation organizations can accomplish,” she said. Sources: https://www.worldwildlife.org/press-releases/nepal-nearly-triples-wild-tiger-population https://www.worldwildlife.org/stories/nepal-nearly-triples-its-wild-tiger-population https://www.worldwildlife.org/stories/what-is-people-centered-tiger-conservation

Global temperatures for 2022 ranked fifth warmest on record, NASA says. This continues a warming trend, the agency adds. The average global surface temperature in 2022 tied with 2015 as the fifth warmest on record. Global temperatures in 2022 were 1.6 degrees Fahrenheit (0.89 degrees Celsius) above NASA’s average for the baseline period of 1951–1980, according to scientists from NASA's Goddard Institute for Space Studies (GISS). The last nine consecutive years were the warmest consecutive nine on record. Earth in 2022 was about 2 degrees Fahrenheit (or about 1.11 degrees Celsius) warmer than the late 19th century average. Human-caused greenhouse gas emissions saw an uptick in 2022, following a short-lived dip in 2020 due to the COVID-19 pandemic. NASA scientists, along with international scientists, determined carbon dioxide emissions to be the highest on record in 2022. Arctic region warming is nearly four times the global average—according to GISS research, as well as a separate study. Source: https://www.prnewswire.com/news-releases/nasa-says-2022-fifth-warmest-year-on-record-warming-trend-continues-301720785.html

A recent review of natural science studies—those published since 2005—has sought to identify the top drivers of biodiversity loss. The systematic review was part of the global assessment report from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES). Most of the studies reviewed did not cover impacts before 1970, with 1983 being the median start year. Here are some of the research team’s key findings: The number one cause of global biodiversity loss was “land/sea use change,” also known as converting natural forests and grasslands to intensive agriculture and livestock usage. Coming in a close second was “direct exploitation” of wildlife via fishing, hunting, trade, and logging. Loss due to pollution was ranked in third place. In fourth place and “significantly” below the top three was climate change. Coming in fifth was biodiversity loss caused by invasive species. Sources: https://www.science.org/doi/10.1126/sciadv.abm9982 https://phys.org/news/2022-11-destruction-forests-grasslands-biggest-biodiversity.html

A recent international study, led by researchers from Mount Sinai Health System and New York University Grossman School of Medicine, quantified the cardiovascular risks of exposure to multiple environmental factors, such as air pollution. The study, published on June 24, 2022 in PLOS ONE, was carried out in Iran between 2004 and 2008 in a “lower-income, multi-ethnic, and mostly rural area where cardiovascular disease is the leading cause of death.” The team analyzed data from more than 50,000 participants, all over the age of 40, and controlled for traditional risk factors such as obesity, physical inactivity, diabetes, tobacco use, and hypertension. “By combining many environmental factors in a single model, we could better control for interactions between risk factors, and identify which environmental risk factors matter most for cardiovascular health,” said the study’s first author Michael Hadley, MD, a Fellow in Cardiology and incoming Assistant Professor of Medicine (Cardiology) at the Icahn School of Medicine at Mount Sinai. According to the independent Institute for Health Metrics and Evaluation based at the University of Washington School of Medicine, environmental hazards played a role in an estimated 11.3 million deaths in 2019. More than 5 million of those deaths were from cardiovascular disease. The Mount Sinai-led study showed that air pollution increases the risk of heart disease mortality by 17%, with all-cause mortality risk from air pollution increasing by 20%. Exposure to indoor burning of wood, dung, or other biomaterials (without ventilation) led to a 36% higher death rate from heart disease and a 23% higher likelihood of all-cause mortality. Individuals exposed to indoor kerosene burning (without ventilation) were 19% more likely to die from heart disease, with 9% more likely to die from all-cause mortality. For every six miles participants lived away from a life-saving catheterization lab (catheterization is an investigative procedure that involves inserting a thin, hollow tube into a large blood vessel that leads to the heart), risk of cardiovascular death rose by 2%, with all-cause mortality increasing by 1%. Residing within approximately 0.06 miles of a smaller roadway and 0.25 miles from a larger highway was associated with a 13% higher risk of all-cause mortality. Source: https://www.mountsinai.org/about/newsroom/2022/specific-environmental-exposures-may-help-predict-increased-risk-of-death-from-cardiovascular-disease

In a 2022 study by Stanford University (US), researchers reported health risks attributed to the residential use of gas stoves. The popular cooking devices are now under increased scrutiny following a controversial regulatory proposal from the US Department of Energy (DOE) that cited the Stanford research team’s findings. Gas stoves are used in about 40% of US homes. In its proposal, the DOE cited the Stanford team’s findings that gas stoves contribute methane emissions estimated to be “0.8 to 1.3 percent of gas consumption for active (cooking) mode due to incomplete combustion and post-meter leakage during active, standby, and off modes.” The DOE proposal stated that Stanford researchers found 48 out of 53 gas ranges studied—including nearby associated piping—leaked methane continuously in standby mode. The DOE estimated an annual health benefit (in economic terms) of $93.8 million if their suggested regulations are implemented. “The level of health benefits may also depend on the degree to which a household uses or has access to proper ventilation,” DOE said. The Stanford team’s data suggest that families who do not use range hoods and/or have poor ventilation can surpass the US safety standard (100 parts per billion) for nitrogen oxides (NOx) “within a few minutes of stove usage, particularly in smaller kitchens.” The Stanford study stated that methane emissions, co-emitted with health-damaging air pollutants such as nitrogen oxides, may “trigger respiratory diseases.” Sources: https://www.theguardian.com/environment/2023/jan/29/why-electric-stoves-are-better-chefs https://www.regulations.gov/document/EERE-2014-BT-STD-0005-0096 https://www.nbcnews.com/politics/politics-news/gas-stove-debate-reignites-energy-department-proposes-new-rules-rcna68728 https://pubs.acs.org/doi/10.1021/acs.est.1c04707 https://www.bloomberg.com/news/articles/2023-01-09/us-safety-agency-to-consider-ban-on-gas-stoves-amid-health-fears

The American Lung Association (ALA) tracks government air quality data in all 50 states and has been issuing an annual report since 2000. Here are some highlights from the ALA’s latest annual “State of the Air” report. Over 40% of Americans—more than 137 million people—live in areas with failing grades for unhealthy levels of ozone or particle pollution. This means that 2.1 million more people are breathing unhealthy air compared with last year’s report. Almost 9 million more people were affected by daily spikes in deadly particle pollution than last year. Ninety-six counties in 15 states received failing grades for short-term particle pollution. Eighty-six of those counties were in 11 western states. Historically, ALA found that urban, industrialized eastern and midwestern states, like New Jersey, New York and Ohio, which in 2007 collectively had 21 counties on the list, had serious air quality issues. Now, these states are getting passing grades. In 2022, Fresno, California, replaced Fairbanks, Alaska, as the US metro area with the worst short-term particle pollution. Los Angeles remained the worst US city for ozone pollution. Sources: https://www.lung.org/research/sota https://www.lung.org/research/sota/key-findings/cleanest-cities

A recent joint study by the UN’s Food and Agriculture Organization (FAO) and the Center for International Forestry Research (CIFOR) found that Zambians enjoy a wide variety of foods foraged from the nation’s forests. The foods range from wild mushrooms, fruits, tubers, and nuts to insects, wild meats, fish, and aquatic and green leafy plants. FAO Forestry Officer and project co-lead Ashley Steel says the study’s results show the “key role” forests play in “food and nutrition security,” as well as biodiversity and other ecosystem services. Foraging accounts for 250,000 cubic meters of produce consumed by Zambians per annum. The authors were able to estimate that rural households in Zambia collect at least 12 million large (20 liter) buckets of wild forest foods per year. According to FAO Forestry Officer Ashley Steel, “On a global scale, if all 1.6 billion people who live near forests were to collect similar quantities of wild forest foods, that would mean 2.65 billion buckets of food would be collected in forests each year.” The wild fruits foraged from Zambia’s forests each year are enough to meet 25% of international recommendations for average annual fruit consumption in Zambia. Zambia has one of the highest percentages of forest cover in the world—about 60% of Zambia’s land area. Source: https://phys.org/news/2022-08-wild-food-foraging-accounts-cubic.html

Global coal-fired power generation trends are off track to meet the Net Zero Emissions by 2050 Scenario, which calls for annual average 9% reductions in coal-fired generation between 2022 and 2030—and a total phaseout by 2040. In fact, coal-fired generation reached a record high in 2021, according to an International Energy Agency (IEA) report last year, despite increased public and private sector calls to lower CO2 emissions from coal-fired power plants. Here is what the IEA report had to say: Coal-fired power generation accounted for more than one-third of total global electricity generation in 2021. In 2021, CO2 emissions from coal-fired power plants rose to a record 9.7 Gt, an increase of almost 6.6% from the prior year. No new coal plants have been fitted with carbon capture, utilization and storage (CCUS) technologies. To meet the Net Zero by 2050 Scenario, 8% annual average reductions of emissions from coal-fired power plants will be needed until 2030 and beyond. In contrast, coal-fired power generation increased by 8% in 2021, a record high, reversing a downward trend over the prior two years. Coal-fired generation grew faster in absolute terms than renewable energy for the first time since 2013. When compared with 2020, coal-fired power plant emissions increased by about 16% in the US and by 20% in the EU. Coal-fired generation in India reached a record high, 13% above 2020 levels. In all, coal's share of total global power generation rose above 36%, far from the trend needed to achieve the Net Zero by 2050 Scenario, which seeks a reduction of around 55% by 2030. Source: https://www.iea.org/reports/coal-fired-electricity

The non-profit Environmental Working Group (EWG) has released its latest Shopper’s Guide to Pesticides in Produce, which reviews US government*data on residual pesticides on US produce. The report updates EWG’s “Dirty Dozen” and “Clean Fifteen” lists that rank fruits and vegetables deemed generally safe or in need of careful washing before eating—https://www.mashed.com/42595/need-know-washing-fruits-veggies/though not everyone agrees that washing is enough—due to detected pesticide residues. About 75% of non-organic fresh produce (sold in the US) contains potentially harmful pesticide residues. Even though the USDA peels or scrubs and then washes produce samples before testing (the FDA only removes dirt before testing), tests detected the presence of 251 different pesticides. Green beans made the Dirty Dozen list for detected residues of the toxic pesticide, acephate, banned by the EPA over 10 years ago for use on food-grade green beans. Cantaloupes were dropped from the Clean Fifteen list, whereas carrots were added. Strawberries topped the Dirty Dozen list, followed by favorites such as spinach (#2), apples (#7), and blueberries (#11). Altogether, 210 pesticides were detected on Dirty Dozen produce. Dirty Dozen produce samples showed up to 23 different pesticides on one sample. Avocadoes, sweet corn, and pineapples topped this year’s Clean Fifteen list. US government sources are the US Department of Agriculture (USDA) and Food and Drug Administration (FDA) and Environmental Protection Agency (EPA). Source: https://www.ewg.org/foodnews/summary.php

In its State of the World’s Fisheries and Aquaculture 2022 report, the UN’s Food and Agriculture Organization (FAO) warned about 811 million people today are hungry, while 3 billion “cannot afford healthy diets.” With fishing and aquaculture playing a major role in feeding global populations, the FAO keeps a close eye on the industry. Here is some of the key data in their latest annual report. In 2020, fisheries and aquaculture production reached a record 214 million tons, valued at about $424 billion. Aquatic foods provide about 17% of global animal protein, reaching over 50% in the cases of several nations in Africa and Asia. Aquatic animal production in 2020 was over 60% higher than the average in the 1990s—substantially outpacing global population growth—mostly due to increased aquaculture production. Total aquatic animal production is projected to reach 202 million tons in 2030, due mostly to growth of aquaculture. People are eating more seafoods than ever—about 20.2 kg (44.5 pounds) per capita in 2020—more than twice the average of 9.9 kg (21.8 pounds) per capita per year in the 1960s. Asia dominates world aquaculture, producing 91.6% of the global total. Fishery stocks—within biologically sustainable levels—declined to 64.6% in 2019, but 82.5% of 2019 landings were from biologically sustainable stocks, a 3.8% increase from 2017 levels. Aquaculture expansion has led to growth of aquatic animal production in inland waters (from 12% of total production in the late 1980s to 37% in 2020). Source: https://www.fao.org/3/cc0461en/cc0461en.pdf