We think it is important for you to know how your investments are making a difference. We wanted to share a company highlight within one of the mutual funds we use for our clients.
Hannon Armstrong is a prime example of the sustainable and responsible companies we aim to invest in. Based in Annapolis, Maryland, they are the first U.S. public company solely dedicated to investments in climate change solutions. They provide capital to progressive businesses in the fields of energy efficiency, renewable energy, and other sustainable infrastructure markets. They utilize a Sustainability Investment Policy to screen any potential investment, requiring that they are “on the right side of the climate change line” in order to be considered. Through their projects, they have reduced C02 by 3.2 million metric tons annually.
Some of their investment beliefs are below:
More efficient technologies are more productive/less costly and will have a stronger business case
Decentralization and diversity of investments lowers risk and increases resiliency
Investments that are in line with scientific consensus and the beliefs of society will have less reputational and regulatory risk
Investments that reduce carbon may have an inherit benefit when carbon becomes widely priced, which is already happening.
So where does their money meet the ground and what projects do they support? A few real-world examples are below:
Solar, electric charging and energy efficiency infrastructure for corporate clients like Fedex and Target.
10 Megawatt Microgrid (solar panel array/battery storage) with water system and boiler plant upgrade to a Marine Corps facility – estimated energy savings of $6m and reduced carbon footprint.
Awarded a $1-billion 50-year utility management contract by the University of Iowa to help meet zero-carbon energy goal which includes their own microgrid and water management systems across their 1,700 acre, 2 campus property.
Furthermore, they have not stopped at just addressing environmental goals. Integrating social goals has also been important. During a recent earnings call, they disclosed donating $150k to Chesapeake Bay COVID-19 relief organizations who are addressing food insecurity and support for victims of domestic violence. They have also advanced diversity in their hiring practices and expanded the employee charitable giving match for donations made to organizations addressing racial and economic justice.
We are excited to see companies like Hannon Armstong under the hood of one of our mutual funds that we use for our clients. They actualize our thoughts on what Sustainable and Responsible investments should look like and are helping move our economy where it needs to go.
We hope you find this company highlight interesting and insightful.
As always, feel free to pass these articles to others or share your comments with us!
Blue Summit does not directly invest in Hannon Armstong. They are a holding within the Green Century Balanced Fund as of this writing. Some, but not all clients, are invested in this fund.