Bobby Bartell, CFA

No express train from the airport: Climate change solutions must start with government.

Bob says governments must take a lead if they want to drive transformation. “We can all share the same views and values and concerns, and we all want to change. Unfortunately, these changes cannot happen in 24 hours because we are typically reliant on these sources of energy. I do think that sometimes government policy is oftentimes blind towards its investments. For instance, in New York City, one of the biggest and most robust cities in the world, travel from an airport like LaGuardia lacks an express train, which is surprising given that it remains a hub for most national domestic air travel. In addition, an express train is lacking in Manhattan’s primary work district.”

“I would like to see the government take steps to make it more feasible to take public transport, like trains, or even follow many of the European cities with safe and accessible bike routes for people who live less than five or 10 kilometers from work. It's not always an option for everybody but the most important thing is it's a zero emissions ride. 

“I think when government looks super-local, the business community can work closely with government agencies to create ways of tackling climate change. Renewables must increase from the current percentage of energy production; it's still a pretty low number. If that number could go to 25%, it would be massive in terms of the impact for all of us.”

Companies can take more responsibility with simple innovations.

Bob says there are several important challenges at the forefront that companies must consider: using too much paper and allowing too much business travel. 

“An enjoyable part of the business world is client interaction, and sometimes, we're required to get on an aeroplane to get to meetings. But the traveler may not know what carbon impact that has. Even dynamics that are making travelers aware of their emissions, such as the airlines or travel agencies providing a personal estimate, may force travelers to reduce their numbers of trips and elect to be virtual. This shift in travel volume may have ramifications for the economy because it means you're not taking an Uber, not going to the hotel, the bartender doesn't get a tip, and so on. All of these have different economic impacts and a domino effect. But the next step is awareness; if you give employees knowledge, I believe most will do the responsible thing.” 

Bob applauds carbon footprint offsets and says firms can look outside their business to have a tangible impact.

Restaurants could make us more aware of how waste is disposed and businesses should aim to minimise waste and reduce the plastics in packaging, Bob adds. Shops that tell you to bring your own bag, or coffee mug, are appreciated by consumers, who will reward them with loyalty. In addition,  there are many big quick service restaurant chains that could provide recycling bins and waste bins, but oftentimes they don’t.

“Driving changes to a company’s footprint often proves to be challenging, and some organisations whose intent is to change is often met with hurdles and resistance. It is often difficult for small businesses to do the right thing when they lack the necessary resources. They may be living payroll to payroll, and a strong wind could abruptly stop the company in its tracks.”

Emerging markets need caution, but the right conditions can help investment.

“Companies do want to have impact globally, for example, in areas like the Middle East and Latin America, but this often requires a business reason to be there first,” Bob says. “These markets are delicate and fragile; many people may not fully understand them, and in certain businesses, there may be a little bit more concern over the right way to do things. I think investing is often easier said than done because anti-bribery and anti-corruption mandates are not fully understood or practiced with care. However, if countries practice safe legal and financial systems, I think the investment will eventually come.”

Role of the sector: Big institutions could do more with their power.

“I think many very large pension funds, asset managers and sovereign funds have significant influence in their mandates,” Bob says. “So, I do think that many more of these organisations should address the right type of policies on how their capital is allocated.”  

Major pension or sovereign funds could consider allocations into venture capital in certain emerging markets, or into private equity. Investors could seek out women-owned or minority owned businesses, or emerging market businesses to have a meaningful impact that way.

“Large institutional investors need to lean in, and try to figure out and identify where there are meaningful returns that ultimately add value to their investment portfolios. It isn't just the ownership that matters, or someone's ethnicity, gender, race or religion. It should be the fundamentals of the business, but you can be actively seeking those types of businesses and have a conduit for conversations that are impactful.”

The 2050 dream: using climate targets to promote global fairness and harmony.

Bob says the less environmentally focused organisations should come together and collaborate on technologies to help developing economies. “Half the world lives in China, India and Africa. We also know that the U.S. is one of the largest polluters in the world almost by default because of its economic activity.” 

“This may be aspirational, but I believe the countries in question could come together, and it would actually help world peace. Russia, China, the U.S., some leaders from Western Europe and a couple of the Middle Eastern nations could unite forces and put energy, money and time into creating new and renewable technology capabilities.”

“There may be politics and incumbent policies involved, and perhaps difficulty in communicating, and some of these countries are still heavily dependent on fossil fuels. That's just the reality. And so, it’s not entirely realistic to think that change can happen overnight. So, companies and global organisations will have to compromise, examine the data and put plans in place to combat the challenges we see ahead.”