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February 8, 2021

ESG Investing – What is our 2021 plan?

Exciting things are happening in this space for 2021. When review the attachment you will note there are many approaches to ESG investing. The green energy sector is one way to approach the issue. There are also ESG “screens” that identify socially sensitive practices and try to replace holdings with negative attributes with positive attribute firms. That can be things like energy and social issues.

Your 360 Family Office is introducing several new investment themes for portfolios. One of them is a sustainable energy investment theme. It turns out that there are some investable approaches that are really interesting. One of them is sustainable renewable energy. This is almost always solar and wind energy projects. The growth in this area is driven by state legal mandates for replacement energy targeting 2035. The areas of the country that are moving in this direction are not unanimous. While the West are leaders as a result of legal mandates targeting 2035 the Southeast is running at almost zero.

I was surprised by one thing I found. Who is the leader in renewable energy in the country when it comes to online, in planning and under-construction – Wyoming, Texas, North Dakota, Colorado, New Mexico. Also, wind is the predominant form of renewable energy and really dwarfs solar. Solar has a big hurdle known as battery development. The only place in America with new Nuclear development is Idaho which just was awarded a new contract to do so by the US Government. For clients interested in this area of investment you may be interested in adding a 4 piece investment portfolio as a satellite to your Core portfolios.

There is also a new Energy Income portfolio that may be added to a portfolio focused on income that earns a majority of their cash from the transportation, storage and processing of energy commodities.