There are three drivers that are pushing sustainability into an investment megatrend in 2013.
This off-balance sheet liability is equivalent to seven percent of their combined revenues and 50 percent of their EBITDA (earnings before interest, taxation, depreciation and amortization). In response, a Sustainability Accounting Standards Board was launched in 2012 with funding by the Bloomberg Philanthropies and the Rockefeller Foundation. The organization’s main goal is to establish and maintain industry-specific sustainability accounting standards for use in Form 10-K and 20-F. What this means for investors is that sustainability is now a CFO issue. A Deloitte white paper entitled Sustainable Finance: The risks and opportunities that (some) CFOs are overlooking reports that half of surveyed CFOs are planning capital investments that support the implementation of sustainability initiatives.
If oil had dropped in price as much as solar panels it would be selling for $10 per barrel. A report by ILSR projects that unsubsidized solar will grow from .1 percent of U.S. electricity supply to 10 percent by 2023, as it wins price parity against utility supplied electricity. Hawaii provides a current example where the price of rooftop solar is now lower than utility supplied electricity resulting in a 75 percent leap in construction applications to install rooftop solar electricity systems.
Tomorrow's article will profile five sustainability trends shaping stock valuations in 2013.
Bill Roth is the Founder of Earth 2017 He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues.
Bill Roth is a cleantech business pioneer having led teams that developed the first hydrogen fueled Prius and a utility scale, non-thermal solar power plant. Using his CEO and senior officer experiences, Roth has coached hundreds of CEOs and business owners on how to develop and implement projects that win customers and cut costs while reducing environmental impacts. As a professional economist, Roth has written numerous books including his best selling The Secret Green Sauce (available on Amazon) that profiles proven sustainable best practices in pricing, marketing and operations. His most recent book, The Boomer Generation Diet (available on Amazon) profiles his humorous personal story on how he used sustainable best practices to lose 40 pounds and still enjoy Happy Hour!