If there was ever a week where it became clear the halls of corporate power smashed through an inflection point in acknowledging the climate crisis, this was it.
The week began with the CEO of Blackrock, Larry Fink, writing an explosive letter, saying that the climate crisis will lead to a “fundamental reshaping of finance.”
I can’t stress enough what a big deal this is. Blackrock manages $6 trillion. That’s trillion, with a T. The scale is a bit incomprehensible for us normals, but it’s worth noting, this is not a twenty-something Extinction Rebellion protestor ringing the alarm. Fink is as old-fashioned and establishment as it gets, yet here he is, writing:
Last September, when millions of people took to the streets to demand action on climate change, many of them emphasized the significant and lasting impact that it will have on economic growth and prosperity – a risk that markets to date have been slower to reflect. But awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance
An example of how finance will change is banks will have to completely rethink how they price a 30-year mortgage if we have no idea what will happen in the next 5, 10 or 50 years. Another one is, if the cost of food shoots up from a lack of farmable land, it blows up any predictions we have on inflation. These changes completely transform how investors need to think.
The most important thing for our Adore Me teammates to understand is, this mentality will trickle down into the entire investor class. Money will walk away, and then run, from businesses that are polluting (Blackrock already said they will remove money from coal companies). Not because it’s the right thing to do, but because it will increasingly be a bad investment. This is a massive mindset shift.
The second announcement was from Microsoft (thanks for posting @Bogdan L.) The tech giant made a bold proclamation:
By 2030 Microsoft will be carbon negative, and by 2050 Microsoft will remove from the environment all the carbon the company has emitted either directly or by electrical consumption since it was founded in 1975.
That’s right – they are seeking to not only go carbon neutral, but rather carbon negative (meaning they remove more carbon from the atmosphere than they emit). That is a first for any major corporation, much less one of Microsoft’s size. You know it was a big deal when it received grudging praise from even Greenpeace:
Greenpeace praised the announcement, saying that Microsoft, which had previously been “in the middle of the pack”, was now acting in a “serious and holistic way”. But it also pointed out that Microsoft will, as it stands, continue to sell machine learning and AI services to fossil fuel companies such as Exxon, BP and Chevron, despite imposing a “carbon fee” on its own suppliers.
That last point is important, for Microsoft, Blackrock, and the rest of us. No one is perfect and we’re all still trying to find our way. But the encouraging part is the urgency is becoming more widely known. And when the Microsoft’s and most conservative investors in the world start talking about it, hopefully everyone will start moving faster.
Happy Reading,
Ranjan
FASHION
How ThredUp Plans To Educate Consumers On Fashion’s Environmental Impact
A really cool new tool / quiz from ThredUp helps consumers better understand their own fashion footprint. It’s worth trying out here: https://www.thredup.com/fashionfootprint/
I’ve linked to Forbes coverage of its launch, and the article had one scary statistic:
A recent survey of 1,000 women across the U.S. conducted by Green Story and online consignment marketplace ThredUp that leveraged peer-reviewed research studies, clothing supply chain databases, and an independent life cycle analysis found that nearly half of those surveyed did not believe their individual shopping habits contributed to climate change.
What’s more: 68% said they thought the issue of fashion waste should be the responsibility of apparel brands—not consumers.
Net-A-Porter’s Sustainable Collection Focuses On Pieces You’ll Wear Forever
In June 2019, online luxury retailer Net-a-Porter launched Net Sustain, a curated platform of brands deemed sustainable by the company.
As part of the initiative, this week they announced the launch of a “Forever Wardrobe”. An idea to help consumers build out staple items that can last forever.
This Is the Cost of Your Beauty Routine
The NY Times digs into the clean beauty movement:
Clean beauty is expected to generate nearly $25 billion by 2025, according to a report from Grand View Research. That may be only a fraction of the beauty industry (an $863 billion business by 2024, according to Zion Market Research), but the demand for products that are marketed as “clean” or “natural” continues to be strong.
Jessica Minh Anh and DHL to host “sustainable catwalk” at JFK Airport
A longtime fashion show producer, famous for holding shows on the Eiffel Tower and London’s Tower Bridge, is partnering with DHL to build a catwalk on the JFK runway.
It’s billed as the first fashion show built to highlight “a globally sustainable supply chain.”
The big ideas and tiny details behind Amazon’s new recyclable mailer
Note: This is from Amazon’s blog so a bit promotional, but it’s a good look at how the company went about introducing a new sustainability product.
INDUSTRY
Plastic To-Go Containers Are Bad, but Are the Alternatives Any Better?
Let’s continue on the theme of packaging. Single-use plastic bans are showing up across the nation. But compostable plates and utensils may not solve the plastic crisis.
For Sweetgreen, recycling and sustainability don’t come easy
Another good piece on the topic. Sweetgreen has long said nothing from its stores goes to landfill. On closer inspection, that’s more aspiration than guarantee
Perdue Farms’ new meat-packing foam dissolves in your sink
One last one. Perdue Farms will start packaging some of its meat products in a more earth-friendly way with compostable foam made of cornstarch that disintegrates under running water.
The role of artificial intelligence in achieving the Sustainable Development Goals
This is an entire research paper, so you are excused from not reading in its entirety, but it’s an important look at how technology can drive a lot of the change needed in combating the climate crisis.
AND FINALLY
Here’s How to Keep Your Cat Forever
I think this would qualify as sustainable fashion as you end up with yarn….
