Browsing by Author "Emerson, Holly"
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Item Open Access Carbon Considerations and Pricing in Global Asset Classes(2023-04-28) Tran, Ben; Nair, Nidhi; Schofield, Hannah; McCarthy, Sean; Verma, SnehalAngeleno Group (AG) is a venture capital and growth equity firm interested in pricing carbon costs into their asset class valuations. AG hopes to understand the financial impacts of carbon because companies with higher levels of carbon exposure are expected to be riskier, which should be reflected in higher returns. In this analysis of a portfolio of the S&P 500 from 2013 to 2022, performance is evaluated by considering how a hypothetical carbon cost based on the constituents’ absolute emissions and carbon intensity changes the portfolio’s volatility, returns, and Sharpe ratio. The carbon impacts are analyzed from the perspective of AG and institutions such as endowments and foundations.Item Open Access Could a Sustainable Bio-Based Plastics Supply Chain Become a Commercial Reality?(2023-04-28) Barnett, Patrice; Hyyppa, Reino; Reynolds, Grace; Roberton, KelsieThe objective of this research is to examine the feasibility of scaling the bio-based plastics industry in a sustainable manner and to evaluate the commercial viability of its supply chain. Bio-based plastics present a viable alternative to the use of fossil fuels in conventional plastics by creating innovative plastics from renewable resources that have the potential to be compostable and emit less carbon dioxide than petroleum-based plastics. Nevertheless, the use of bio-based plastics presents certain obstacles, such as competition with food production, limited consumer awareness, and obstacles to achieving cost competitiveness with conventional plastics. The report analyzes the current state of the bio-based plastics sector, identifies key challenges and opportunities, and presents recommendations for sustainably scaling the industry. As of 2021, the bio-based plastic market is valued at $11.2B USD and is expected to grow at a rate of 17.02% per year, reaching $46.1B USD by 2030 (Precedence Research). To identify opportunities for meeting this level of growth sustainably, the Master’s Project team conducted semi-structured interviews with stakeholders in the bio-based plastics industry and conducted desk research. The original scope of research was to determine how waste-based feedstocks for bio-based plastics are defined, however, based on feedback from interviewees, the Master’s Project team pivoted due to limited demand for waste-based solutions. The team adopted a more holistic approach to understand the market by analyzing different feedstock sources and end-of-life (EOL) options for bio-based plastics, as well as the role of the government and certification services to develop a sustainable, competitive alternative to the plastics industry. Based on the report’s findings, a commercially viable and sustainable supply chain for bio-based plastic can be feasible. The report drew on desk-based research and interviews with ten stakeholders in the bio-based plastics sector including producers, buyers, certification services, and non-governmental organizations. As a result, five key areas were identified that stakeholders in the bio-based plastic value chain should consider to enhance the industry’s sustainability. These areas include: 1) Design with EOL in mind, 2) Create partnerships with stakeholders across the bio-based materials value chain, 3) Urge for a global standardized labeling process, 4) Consider bio-based plastic terminology and use of EOL terms carefully for better consumer education, and 5) Confirm how feedstock is sourced with suppliers.Item Open Access Critical Minerals for the Energy Transition(2024-04-21) Duncan, Braxton; Guyett, Lucy; Hsueh, Jolina; Park, JiyoungAs more countries set ambitious clean energy goals, demand for clean energy technologies has skyrocketed. Critical minerals play an essential role in solar PV, EV batteries, and wind turbines, and as demand for these technologies increases, so do the geopolitical concerns over access to critical minerals. Ortec Finance, a Dutch financial technology and risk firm, wants to incorporate the concern over critical mineral supply into its climate risk model. Our objective for this project was to develop a quantitative model examining the relationship between the supply and demand of critical minerals while incorporating global policy impacts into our analysis. Our research focused on the supply and demand of five critical minerals- lithium, cobalt, copper, nickel, and neodymium- in a net zero by 2050 scenario. We chose these critical minerals because they are essential for solar PV, EV batteries, and wind turbines. We had three main research areas: demand, supply, and critical minerals policy. In developing our model, we collected our raw data from public data sources, such as IEA and IRENA, and then used projection methods to extrapolate historical data to 2050. We used the expected demand for our three technologies to estimate future demand. Then, we took the critical minerals used in each technology and calculated the expected future demand for critical minerals. Using the Bass-Diffusion Theory, we calculated future supply by projecting historical data out to 2050. In comparing our supply and demand projections, we determined that each critical mineral has enough known supply to meet the demand. However, to meet the demand for Cobalt, Lithium, and Neodymium, the world will need to tap into known reserves, while Nickel and Copper can meet demand through current deposits. A major concern surrounding critical minerals is the discrepancy between the location of supply and demand. The known reserves of these critical minerals are located primarily in Asia, Russia, and Australia, but demand for these critical minerals comes largely from China, Europe, and the U.S. The mismatch in geography sets the stage for geopolitical challenges. Given the many geopolitical tensions over critical minerals, we chose to research the global policy of critical minerals and its impacts on demand and supply. We examined policy and its impact on global supply and demand through country case studies, specifically looking at the energy and critical mineral policies of Kenya, the U.S., Australia, and the EU. Although each country chose diverse energy and critical mineral strategies, they all had a focus on energy independence to bolster the economy or ensure national security. The policies signified significant steps toward developing clean and resilient energy systems that rely heavily on solar PV, EV batteries, and wind. As our model and policy research demonstrate, there is a heightened need for countries to factor critical mineral access into their geopolitical considerations.Item Open Access Environmental Footprint Strategy for Philadelphia Macaroni Company(2023-04-28) Chan, Meilin; Jani, Chayan; Weinberg, Julia; Qiu, InaTo reach net zero goals, global food industry leaders are beginning to request that their suppliers take data-driven actions to reduce their environmental footprint. This project aims to develop a forward-thinking sustainability strategy which can position Philadelphia Macaroni Company (PMC) as a key sustainable supplier. We determined future requirements for food industry suppliers through industry benchmarking, informational interviews, and an assessment of PMC’s carbon accounting tool. The project focuses on four key metrics material to PMC: greenhouse gas emissions, sustainable agriculture, waste, and water. Our findings indicate that while leading companies have set ambitious sustainability linked supply chain goals, they are not yet actively engaging suppliers in these goals. We recommend a strategy that focuses on three scenarios (meets minimum expectation, adds value and future proofing) to prepare them for the future alignment with industry and meet key customer expectations.Item Open Access Establishing a Carbon Emissions Reduction Target and Action Plan for Philadelphia Macaroni Company(2024-04-24) Kuckreja, Shivani; Ding, Ke (Duke); Ghosh, Samriddha; Liu, Jinxi (Tori)Pasta production company Philadelphia Macaroni Company has spent over a century focused on innovation, which has helped establish them as a successful, global brand. Now, they're ready to shift some of this focus to sustainability and have asked for our help to ensure that they can hit the ground running on their sustainability efforts. Over the course of our presentation, we will discuss the sustainability targets we recommend they set and how we chose these targets, as well as specific strategies that Philadelphia Macaroni Company can implement to achieve these targets.Item Open Access GREENING YOUR HOME: MAKING HOME SUSTAINABILITY BUYER AND SELLER-FRIENDLY(2024-04-26) Tesla, SuzanaFor most, the purchase of a home is the single largest investment that an individual will make in his or her lifetime. While the purchase itself comes with a variety of strings, unexpected expenses and uncertainties, consumers have added an additional level of home sustainability into the mix. As consumers have become more environmentally conscious and educated, they have also started to demand the same from their agents and the industry. However, agents, buyers, and sellers continue to have minimal knowledge regarding residential home sustainability, especially for homes that are not newly built. Green certifications, which could provide various insights, apply primarily to newly built homes, and the green features on MLS are limited and create major gaps for understanding home sustainability. This leaves an opportunity for the development of a system that will provide greater insights on home sustainability to buyers while also being easy to develop and use by the agents and the sellers. This paper bridges this gap by assesses the current environment, green initiatives, and various stakeholder to create a set of guidelines to assist agents in developing a green score that buyers and sellers can use to easily and efficiently compare home sustainability. Six different areas are covered in the green score: indoor environment, external environment, energy efficiency, water efficiency, walkability, and landscaping. Each area is discussed in detail in terms of the components and the opportunities for improvement, and a set of questions is developed that would allow agents and sellers to assess the home’s green features and sustainability. The questions, like the property disclosures that sellers are required to fill out, are simple to answers with either a yes/no response, a percentage, a number, or a selection from the provided options. The questionnaire has a scoring criterion, which is then used to calculate the green score - first by averaging each area separately and then by averaging the average of each area. This prevents areas that have more questions from carrying more weight, and thus gives homes that do not score well in one area the opportunity to still score well overall. An initial prototype of the green score was designed and tested for feedback. Most notably, users were interested to know more about the score, its significance, and its impact on potential buyers. Others also mentioned wanting a more tangible aspect of the score, such as the financial savings associated with a particular score or the health impacts. Based on this feedback, a new design was created that presented the overall green score at the center, with the option to click on the six areas on the side and obtain more information about the scoring for that category and various resources related to the measures. This would help users further explore home sustainability beyond just the green score. This initial design of the green score is just the first step to making residential home sustainability easily accessible for agents, buyers, and sellers. From there, there are three improvements that can be made to the score: integration with outside data providers, addition of a financial savings components, and maintenance of historical data. By collaborating with other sources, such as Energy Star or the Air Quality Index, additional data can be merged to further add to the credibility of the green score. These other sources could also be used to calculate the financial savings more accurately, such as the information from the Energy Star product finder. From there, as more data is collected and the green score if filled out during each consecutive home sale, historical data can help identify trends and improvements in a home, while also making it easier for future agents to fill out the green score questionnaire by adjusting the previous one to include any changes since the last sale. Overall, the green score has the potential to bring greater transparency and information when it comes to home sustainability in the residential real estate brokerage industry. It is more agent, buyer, and seller friendly, with various improvements available down the line to allow for even greater applicability. With greater demands from buyers and increased environmental regulations, the green score can help buyers and sellers make a first, easy step toward understanding home sustainability and the potential changes that can be made. It sets the tone for future conversations and create a needed change in the brokerage industry.Item Open Access Implementing a Net Zero Carbon Strategy in the Real Estate Industry(2023-04-28) Barry, JamieTishman Speyer is a real estate developer that owns an international portfolio of office properties in major cities and has a goal to reach net zero carbon emissions across global operations by 2050. As an intern with Tishman Speyer last summer, I delivered a tool that provides pathways for each US asset to reach operational net zero. I worked with internal stakeholders such as asset managers, portfolio managers, engineers, and members of the sustainability team to inform the tool’s design. The tool includes financial models that project NPV and IRR associated with individual energy efficiency, retrofit, electrification, and on-site renewable projects by evaluating future energy costs, fines from regulators, and future REC/offset costs. The tool also estimates emissions reductions associated with energy projects, recommends project prioritization, and estimates future emissions under multiple decarbonization scenarios. For my MP Project, I expanded the scope of this tool and helped deploy it. I worked throughout the year to add features that provide scenario-level financial models, incorporate scenario Opex and Capex changes into property Profit and Loss Statements, and give users the option to design customized decarbonization scenarios. I helped Tishman Speyer use this tool to generate net zero pathway reports for all US assets. Reports will be sent to employees and investors, ensuring that all stakeholders understand what is needed for Tishman Speyer to reach net zero.Item Open Access Investigating the Quality of Carbon Credits from Nitrous Oxide Abatement in Nitric Acid Manufacturing(2024-04-24) Healey, Liam; Vaidya Subramanian, NagarajanNitric acid is primarily used in the chemical manufacturing industry to produce synthetic fertilizers and is one of the largest anthropogenic sources of Nitrous Oxide (N2O) emissions. Working with Calyx Global’s Renewable Energy and Industrial Gas team under an NDA, we sought to adapt their existing ratings framework to best evaluate the greenhouse gas (GHG) integrity of ‘N2O abatement in Nitric Acid Production’ carbon credit projects. Potential GHG integrity risks were categorized into six standardized factors - Additionality, Baseline, Project Emissions, Leakage, Permanence, and Overlapping Claims. We first independently studied the nitric acid manufacturing industry and individual carbon credit methodologies to identify sectoral and methodology-level GHG integrity risks. From this, we produced a combined sectoral and methodology-level assessment framework to determine the quality of carbon credits. Finally, we rated select N2O abatement projects and awarded them a letter grade corresponding to the GHG integrity of their carbon credits. These ratings will inform potential investors about the reliability of a credit’s claim on its climate impact.Item Open Access Start Right - Environmentall Compliance Strategies for Start-Ups(2024-04-12) Fanslau, TaushaWith the passage of the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and Creating Helpful Incentives to Produce Semiconductors (CHIPS), construction of manufacturing facilities has more than doubled since late 2021. As companies rush to find a site to build these facilities, it is important to consider the environmental responsibilities associated with a new build. Often, companies do not have internal environmental staff at this phase. The cost of noncompliance can be high. The Environmental Plan Guide (EPG) assists companies during each phase of a construction project in performing due diligence and meeting environmental responsibilities while addressing compliance with common environmental issues and a focus on federal regulations. The EPG describes the topic, how to screen for applicability, what steps to take if it applies, and an estimate of how long compliance activities will take. Each topic also includes links to get more information.Item Open Access Sustainable Supply Chain Management for Matthews International(2024-04-24) Liu, Ying; Kry, Sokna; Zu, SebrinaMatthews International recently updated its environmental sustainability commitments, which encompass ten core pledges. This project aims to enhance sustainable procurement practices at the Industrial Technology Business Unit at Matthews. The focal point of our project is the development of an effective process that guarantees suppliers' compliance with sustainable procurement requirements such as CSRD, CBAM, and EcoVadis. By conducting a gap analysis of Matthews' current scoring and a case study of the supply chain process and the impact of one main raw material, lithium, we found that Matthews' procurement practices still has a lot of room for improvement, especially in supplier diversity, stakeholder engagement, and the integration of environmental and social criteria into its supply chain process. As a result, specific recommendations were proposed for each reporting requirement for a more sustainable procurement process.