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Taking a systems approach to sustainability

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Taking a systems approach to sustainability


These days we are all striving for connections. In families, between generations, in neighborhoods, and even among co-workers. We rely on it for learning, for trading, for economic growth, for innovation and for global change.

Audrey Choi is the Chief Sustainability Officer and Chief Marketing Officer at Morgan Stanley.

If we didn’t know it before, we certainly realize it now: our connectedness—the ways we are knit together—holds both benefits and risks for our health, our economies, our communities, and our planet.

That’s the essence of sustainability, really. It’s not just an environmental issue but also a fundamental economic issue. And it’s not just a health issue but also a moral imperative. The size and complexity of the challenges we face require creative, systems-level thinking.

No one acting alone—no country, no sector, no scientist, no corporation—will effect meaningful change. Solving the world’s biggest sustainability challenges will require a new kind of innovation, one that leverages insights and expertise from across a broad spectrum of sectors and industries.

Tackling plastic waste

Take the plastic waste problem. Every year, $80 to $120 billion dollars of economic value is thrown away in the form of single-use plastic packaging.(i) Every minute the equivalent of a garbage truck’s worth of plastic waste is dumped into the ocean,(ii) and according to University of Georgia environmental engineering professor Jenna Jambeck, at the current rate, by 2030 it will be a football stadium’s worth of plastic waste being dumped into our oceans every day.(iii)

Stemming the tide of plastic waste will require innovation across the entire plastics value chain – from how it is formulated in the lab, designed into products, used by consumers, and ultimately collected, recycled, and disposed of.

Two years ago, Morgan Stanley launched its Plastic Waste Resolution,(iv) not because we produce or use a lot of plastic, but because as a global financial firm we are connected to the investors, the corporations, the governments, the innovators, and the nonprofits that can make a difference. If we all work together.

The resolution is very straightforward: as a firm, we committed to facilitating the prevention, reduction, and removal of 50 million metric tons of plastic waste from nature by 2030. As part of that, we’re underwriting the Debris Tracker app,(v) which supports citizen science by empowering individuals to collect and report data litter so scientists and researchers can better understand the causes of plastic waste in coastlines and waterways.

Our social compact

Of course, sustainability is bigger and broader than plastic pollution, and “environment” is just one leg of the environmental, social, and corporate governance (ESG) stool. The last year, in fact, has brought renewed attention to the full spectrum of sustainability, and again, innovation and partnership were key to the response.

A relatively new product, “social bonds” are now helping foundations and other nonprofits fund the critical work of renewing communities, battling racial injustice, and securing a more equal future for all people. Last year, for example, Morgan Stanley partnered with the Ford Foundation to underwrite a first of its kind $1 billion social bond,(vi) which allowed the foundation to increase grant making to nonprofits during the pandemic and ensure the continuity of organizations fighting for equality and supporting vulnerable communities. And later in the year we raised our own $1 billion with a social bond that allocated capital in equal amounts to the financing and refinancing of affordable housing projects for low- or moderate-income individuals and families across the US.(vii)

That broad understanding—that sustainability takes integrated, innovative approaches to achieve—sits at the core of Morgan Stanley’s Global Sustainable Finance Group. We started it more than a decade ago with the express purpose of partnering with teams across our businesses to implement sustainable solutions and integrate sustainability into our products and services. It is also why as a firm, in September, building on our announced goal to be carbon-neutral by 2022,(viii) we became the first major US bank to pledge to reach net-zero financed emissions by 2050.(ix)

What seemed like a novelty to some back then has become core to many investor portfolios and corporate risk statements. Sustainable investing accounts for $1 out of every $3 under professional management in the US,(x) and is now a more-than $30 trillion market globally.(xi) In a recent survey, a remarkable 85% of US individual investors express interest in sustainable investing strategies,(xii) and we think the investment, the innovation and the commitment will only grow.

Real efforts are underway at our firm and across many sectors to develop, launch, and scale real sustainability efforts that together will make a difference for us and future generations. That’s good news, because our most pressing complex ESG problems will not be solved in silos.


(i) MacArthur, D. E., D. Waughray, and M. R. Stuchtey. “The New Plastics Economy, Rethinking the Future of Plastics.” World Economic Forum. 2016, https://www.ellenmacarthurfoundation.org/publications/the-new-plastics-economy-rethinking-the-future-of-plastics

(ii) Pennington, James. “Every minute, one garbage truck of plastic is dumped into our oceans. This has to stop.” World Economic Forum. 2016, https://www.weforum.org/agenda/2016/10/every-minute-one-garbage-truck-of-plastic-is-dumped-into-our-oceans/

(iii) Parker, Laura. “Plastic pollution is a huge problem—and it’s not too late to fix it,” National Geographic, October 6, 2020, https://www.nationalgeographic.com/science/article/plastic-pollution-huge-problem-not-too-late-to-fix-it

(iv) https://www.morganstanley.com/Themes/plastic-pollution-resolution

(v) https://www.nationalgeographic.org/education/programs/debris-tracker/

(vi) https://www.fordfoundation.org/the-latest/news/ford-foundation-takes-historic-unprecedented-action-to-increase-grantmaking-for-nonprofits-by-1-billion-with-proceeds-of-offering-of-social-bonds-in-response-to-covid-19/

(vii) https://www.businesswire.com/news/home/20201021005884/en/Morgan-Stanley-Continues-Commitment-to-Sustainable-Investing-with-Social-Bond-to-Support-Affordable-Housing

(viii) https://www.morganstanley.com/articles/carbon-neutral-by-2022

(ix) https://www.morganstanley.com/press-releases/morgan-stanley-announces-commitment-to-reach-net-zero-financed-e

(x) Nason, Deborah. “’Sustainable investing’ is surging, accounting for 33% of total U.S. assets under management,” December 21, 2020, https://www.cnbc.com/2020/12/21/sustainable-investing-accounts-for-33percent-of-total-us-assets-under-management.html

(xi) Chasan, Emily, “Global Sustainable Investments Rise 34 Percent to $30.7 Trillion,” Bloomberg, April 1, 2019, https://www.bloomberg.com/news/articles/2019-04-01/global-sustainable-investments-rise-34-percent-to-30-7-trillion

(xii) https://www.morganstanley.com/pub/content/dam/msdotcom/infographics/sustainable-investing/Sustainable_Signals_Individual_Investor_White_Paper_Final.pdf

DISCLOSURES – required

This material was published on April 6, 2021. All information in this material has been prepared by Morgan Stanley Smith Barney LLC and/or Morgan Stanley & Co. LLC, Members SIPC (collectively “Morgan Stanley”) for informational purposes only and is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Morgan Stanley Research Department and is not a Research Report as defined under FINRA regulations. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley recommends that recipients should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences, of any transaction or strategy referenced in any materials. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.  Morgan Stanley, its affiliates and Morgan Stanley Financial Advisors do not provide tax, accounting or legal advice. Individuals should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving legal matters.

This material contains forward-looking statements and there can be no guarantee that they will come to pass.  You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made, whether as a result of new information, future events or otherwise except as required by applicable law. You should, however, consult further disclosures we may make in future filings of our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and any amendments thereto or in future press releases or other public statements.

Past performance is not a guarantee of future performance. Information contained herein is based on data from multiple sources and Morgan Stanley makes no representation as to the accuracy or completeness of data from sources outside of Morgan Stanley. References to third parties contained herein should not be considered a solicitation on behalf of or an endorsement of those entities by Morgan Stanley.

Please note that there is currently no legal, regulatory or similar definition of what constitutes a “social” bond or as to what precise attributes are required for a particular issuance to be defined as “social.” Without limiting any of the statements contained herein, Morgan Stanley makes no representation or warranty as to whether a bond constitutes a social bond, unless otherwise specified by Morgan Stanley, or whether a bond conforms to investor expectations or objectives for investing in social bonds. For information on characteristics of a specific social bond, use of proceeds, a description of applicable projects and/or any other relevant information about the bond, please reference the offering documents for the bond.


The returns on a portfolio consisting primarily of Environmental, Social and Governance (“ESG”) aware investments may be lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria.

Information contained in the material is based on data from multiple sources and Morgan Stanley makes no representation as to the accuracy or completeness of data from sources outside of  Morgan Stanley. References to third parties contained herein should not be considered a solicitation on behalf of or an endorsement of those entities by Morgan Stanley. Morgan Stanley is not responsible for the information contained on any third party web site or your use of or inability to use such site, nor do we guarantee its accuracy or completeness. The terms, conditions, and privacy policy of any third party web site may be different from those applicable to your use of any Morgan Stanley web site. The opinions expressed by the author of an article written by a third party are solely his/her own and do not necessarily reflect those of Morgan Stanley. Professional designations mentioned in the articles may or may not be approved for use at Morgan Stanley. The information and data provided by any third party web site or publication is as of the date of the article when it was written and is subject to change without notice.

© 2021 Morgan Stanley & Co. LLC and Morgan Stanley Smith Barney LLC.  Members SIPC.  CRC 3514255 4/2021

This content was produced by Morgan Stanley. It was not written by MIT Technology Review’s editorial staff.

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The Download: a long covid app, and California’s wind plans

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The Download: a long covid app, and California’s wind plans


1 The Twitter Files weren’t the bombshell Elon Musk billed them as 
His carelessness triggered the harassment of some of Twitter’s content moderators, too. (WP $)
+ The files didn’t violate the First Amendment, either. (The Atlantic $)
+ Hate speech has exploded on the platform since he took over. (NYT $)
+ Journalists are staying on Twitter—for now. (Vox)
+ The company’s advertising revenue isn’t looking very healthy. (NYT $)

2 Russia is trying to freeze Ukrainians by destroying their electricity 
It’s the country’s vulnerable who will suffer the most. (Economist $)
+ How Ukraine could keep the lights on. (MIT Technology Review)

3 Crypto is at a crossroads
Investors, executives, and advocates are unsure what’s next. (NYT $)
+ FTX and the Alameda Research trading firm were way too close. (FT $)
+ It’s okay to opt out of the crypto revolution. (MIT Technology Review)

4 Taylor Swift fans are suing Ticketmaster
They’re furious they weren’t able to buy tickets in the botched sale last month. (The Verge)

5 The internet is having a midlife crisis
What is it for? And more importantly, who is it for? (Slate $)
+ Tim Berners-Lee wanted the internet to have an ‘oh, yeah?’ button. (Slate $)

6 We need a global deal to safeguard the natural world
COP15, held this week in Montreal, is our best bet to thrash one out. (Vox)
+ Off-grid living is more viable these days than you may think. (The Verge)

7 What ultra-dim galaxies can teach us about dark matter  
We’re going to need new telescopes to seek more of them out. (Wired $)
+ Japanese billionaire Yusaku Maezawa has some big plans for space. (Reuters)
+ A super-bright satellite could hamper our understanding of the cosmos. (Motherboard)
+ Here’s how to watch Mars disappear behind the moon. (New Scientist $)

8 An elite media newsletter wants to cover “power, money, and ego.”
It promises unparalleled access to prolific writers—and their audiences. (New Yorker $)
+ How to sign off an email sensibly. (Economist $) 

9 The metaverse has a passion for fashion 👗
Here’s what its best-dressed residents are wearing. (WSJ $)

10 We’ve been sending text messages for 30 years 💬
Yet we’re still misunderstanding each other. (The Guardian)

Quote of the day

“There is certainly a rising sense of fear, justifiable fear. And I would say almost horror.”

—Pamela Nadell, director of American University’s Jewish Studies program, tells the Washington Post she fears that antisemitism has become normalized in the US, in the light of Kanye West’s recent comments praising Hitler.

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California’s coming offshore wind boom faces big engineering hurdles

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California’s coming offshore wind boom faces big engineering hurdles


Research groups estimate that the costs could fall from around $200 per megawatt-hour to between $58 and $120 by 2030. That would leave floating offshore wind more expensive than solar and onshore wind, but it could still serve an important role in an overall energy portfolio. 

The technology is improving as well. Turbines themselves continue to get taller, generating more electricity and revenue from any given site. Some research groups and companies are also developing new types of floating platforms and delivery mechanisms that could make it easier to work within the constraints of ports and bridges. 

The Denmark-based company Stiesdal has developed a modular, floating platform with a keel that doesn’t drop into place until it’s in the deep ocean, enabling it to be towed out from relatively shallow ports. 

Meanwhile, San Francisco startup Aikido Technologies is developing a way of shipping turbines horizontally and then upending them in the deep ocean, enabling the structures to duck under bridges en route. The company believes its designs provide enough clearance for developers to access any US port. Some 80% of these ports have height limits owing to bridges or airport restrictions.

A number of federal, state, and local organizations are conducting evaluations of California and other US ports, assessing which ones might be best positioned to serve floating wind projects and what upgrades could be required to make it possible.

Government policies in the US, the European Union, China, and elsewhere are also providing incentives to develop offshore wind turbines, domestic manufacturing, and supporting infrastructure. That includes the Inflation Reduction Act that Biden signed into law this summer.

Finally, as for California’s permitting challenges, Hochschild notes that the same 2021 law requiring the state’s energy commision to set offshore wind goals also requires it to undertake the long-term planning necessary to meet them. That includes mapping out a strategy for streamlining the approval process.

For all the promise of floating wind, there’s little question that ensuring it’s cost-competitive and achieving the targets envisioned will require making massive investments in infrastructure, manufacturing, and more, and building big projects at a pace that the state hasn’t shown itself capable of in the recent past.

If it can pull it off, however, California could become a leading player in a critical new clean energy sector, harnessing its vast coastal resources to meet its ambitious climate goals.

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How Twitter’s “Teacher Li” became the central hub of China protest information

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How Twitter’s “Teacher Li” became the central hub of China protest information


It’s hard to describe the feeling that came after. It’s like everyone is coming to you and all kinds of information from all over the world is converging toward you and [people are] telling you: Hey, what’s happening here; hey, what’s happening there; do you know, this is what’s happening in Guangzhou; I’m in Wuhan, Wuhan is doing this; I’m in Beijing, and I’m following the big group and walking together. Suddenly all the real-time information is being submitted to me, and I don’t know how to describe that feeling. But there was also no time to think about it. 

My heart was beating very fast, and my hands and my brain were constantly switching between several software programs—because you know, you can’t save a video with Twitter’s web version. So I was constantly switching software, editing the video, exporting it, and then posting it on Twitter. [Editor’s note: Li adds subtitles, blocks out account information, and compiles shorter videos into one.] By the end, there was no time to edit the videos anymore. If someone shot and sent over a 12-second WeChat video, I would just use it as is. That’s it. 

I got the largest amount of [private messages] around 6:00 p.m. on Sunday night. At that time, there were many people on the street in five major cities in China: Beijing, Shanghai, Chengdu, Wuhan, and Guangzhou. So I basically was receiving a dozen private messages every second. In the end, I couldn’t even screen the information anymore. I saw it, I clicked on it, and if it was worth posting, I posted it.

People all over the country are telling me about their real-time situations. In order for more people not to be in danger, they went to the [protest] sites themselves and sent me what was going on there. Like, some followers were riding bikes near the presidential palace in Nanjing, taking pictures, and telling me about the situation in the city. And then they asked me to inform everyone to be cautious. I think that’s a really moving thing.

It’s like I have gradually become an anchor sitting in a TV studio, getting endless information from reporters on the scene all over the country. For example, on Monday in Hangzhou, there were five or six people updating me on the latest news simultaneously. But there was a break because all of them were fleeing when the police cleared the venue. 

On the importance of staying objective 

There are a lot of tweets that embellish the truth. From their point of view, they think it’s the right thing to do. They think you have to maximize the outrage so that there can be a revolt. But for me, I think we need reliable information. We need to know what’s really going on, and that’s the most important thing. If we were doing it for the emotion, then in the end I really would have been part of the “foreign influence,” right? 

But if there is a news account outside China that can record what’s happening objectively, in real time, and accurately, then people inside the Great Firewall won’t have doubts anymore. At this moment, in this quite extreme situation of a continuous news blackout, to be able to have an account that can keep posting news from all over the country at a speed of almost one tweet every few seconds is actually a morale boost for everyone. 

Chinese people grow up with patriotism, so they become shy or don’t dare to say something directly or oppose something directly. That’s why the crowd was singing the national anthem and waving the red flag, the national flag [during protests]. You have to understand that the Chinese people are patriotic. Even when they are demanding things [from the government], they do it with that sentiment. 

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