Unraveling the Complexities of Sustainability in a Changing World
First Stance: Sustainability as a Core Business Opportunity
Start-ups, private-capital investors, and incumbents are pivoting to scale up new clean technology, seeing sustainability as a core business opportunity. Investors are becoming more discerning, focusing on "deal origination" rather than funding shortages. Many startups are exploring blended finance and carbon markets to overcome capital scarcity. Some recent failures are seen as execution issues rather than flaws in the business idea.
For example, a startup in the renewable energy sector faced challenges in securing funding initially. But by leveraging blended finance mechanisms and focusing on derisking execution, they were able to attract investors and bring their projects to fruition. Another startup in the carbon capture industry is looking to carbon markets as a bankable source of revenues to support their ventures.
Second Stance: Struggles in High-Emitting Industries
Companies in high-emitting industries like oil, gas, and power, as well as hard-to-abate sectors like steel and aviation, face difficulties in making business cases for deploying new climate technology. They need to rethink business models and partnership approaches to continue reducing emissions.
For instance, an oil company is exploring carbon capture technologies but is struggling to justify the investment based on their current hurdle rates. By collaborating with research institutions and startups, they are trying to find innovative solutions that can make the technology more economically viable and help them meet their decarbonization goals.
Third Stance: Committed to Meeting or Exceeding Commitments
Some companies are committed to meeting or exceeding their previous sustainability commitments. They strive to be leaders in their sectors, responding to customer and employee needs. However, they often face challenges such as geopolitical developments and regulatory changes that can derail their progress.
Take a manufacturing company that had set ambitious sustainability goals. Due to regulatory changes, they had to reevaluate their plans and invest more in compliance measures. By taking an honest look at their emissions footprint and resourcing, they were able to get back on track and continue making progress towards their goals.
Regardless of their stance, companies need to reevaluate their positions, rethink their strategies, and communicate their plans publicly. It's time for a major refresh with a scenario-based approach for the future. They need to accelerate on committed plans while keeping other options viable.
Accelerating Cost-Competitive Climate Technologies
Identifying and scaling up new climate technologies is crucial for companies. While renewables have scaled up, many other technologies are just starting to move from labs to commercial scale. Industrializing these technologies is imperative given their attractive economics and potential to accelerate the transition.
For example, a company working on hydrogen technology is focused on accelerating its deployment. By demonstrating the prototype in an operational environment and reducing unit costs through scaling, they are attracting financing and securing offtakes. Another company is investing in long-duration energy storage to meet the growing energy demand while reducing carbon emissions.
Executing on In-the-Money Technologies with Rigor
For companies that have advanced to the scaling phase, operational and commercial execution is a frequent challenge. Derisking execution requires the same effort as derisking the business case and consistent application of best practices.
Take a company in the smart microgrid industry. They are focusing on speed of execution, driving down unit costs, and locking in offtake agreements. By having teams with prior experience and following best practices in supply chain and operations, they are able to scale up their technology successfully.
In conclusion, the sustainability landscape is constantly evolving, with companies facing various challenges and opportunities. They need to be strategic, collaborative, and embrace digital tools to accelerate action and meet their sustainability goals. The clock is ticking, and true leaders will emerge stronger by taking decisive actions.
Uncover the Geographical Insights of Finance with Atlas of Finance
What was the inspiration for this book?
Atlas of Finance wasn't James Cheshire's idea. It originated from Dariusz Wójcik, an economic geographer based in Oxford who later moved to the National University of Singapore. Wójcik is a map enthusiast but lacked the cartographic background and data visualization skills to realize his dream of creating a financial geography atlas. He recommended the project to Cheshire and Oliver Uberti. Together, they developed a plan to create the first atlas of its kind, showing the financial world from a geographic perspective. Wójcik's drive led to the publication of the book after nearly five years.
There are numerous examples where geography matters, creating disparities and opportunities in finance. One such example is the need to connect trading centers between Chicago and New York quickly due to the New York Stock Exchange. Companies go to great lengths, using microwave transmitters and fiber optic cables, to get data as fast as possible for a trading advantage.
What surprised you about the content? Has working on the book changed your understanding of money and the effects of geography on it?
Cheshire's background is in geography but not financial geography. Working on the book was a learning experience, highlighting the continued importance of geography in finance. Despite the shrinking world through the internet, there are still differences between countries that create opportunities and risks. For example, the need to connect trading centers quickly shows that distance is still a significant factor.
Another example is the visualization of remittances. The book shows incoming remittances to countries as a percentage of GDP in 2019, highlighting the significance of remittances in livelihoods and the global financial system.
Migrating Money: Remittances have become a major part of livelihoods and the global financial system.
The image in the book depicts the incoming remittances to countries, emphasizing their importance. Remittances play a crucial role in many economies and have a significant impact on people's lives.
This shows how data visualization can bring to light important aspects of the global financial system that might otherwise be overlooked.
Where is Money Going? Having penetrated every nook and cranny of Earth, finance looks set to conquer outer space.
The image shows the number of observational satellites per country in 2021, indicating the reach of finance. It's fascinating to see how finance is expanding its influence beyond Earth.
This visual gives a glimpse into the global reach of financial activities and the potential for further expansion.
What were the key data visualization challenges? Were there any topics you found difficult to align with the atlas concept?
The challenge in mapmaking is deciding what to include and what to leave out. While some may consider a physical printed book old-fashioned, printing a paper atlas from high-tech data has its advantages. Knowing the page size and constraints allows for strong editorial decisions about the amount of detail to include.
James Cheshire's role involved working closely with Oliver Uberti and experts. They had to distill a large amount of data into a single story, which informed the data processing and design. This collaborative process was crucial in creating a coherent atlas.
Islands of Wealth: For the rich, London is paradise, a sunny archipelago of expensive properties registered in offshore jurisdictions and tax havens.
The image shows overseas sales and purchases of properties from 2008-18, highlighting the wealth concentration in certain areas. It showcases how finance and property are intertwined in specific locations.
This visual provides insights into the global distribution of wealth and the role of offshore jurisdictions in the financial world.
How did you coordinate the style with the substance in the balance of the book?
The book's designer, Oliver Uberti, focused on making the book look like money. Using techniques from bank notes inspired the colors and rendering of the images. A consistent color palette was chosen to tie the book together and create a seamless experience.
For each graphic, the mantra "it's the topic, the data, the angle, the form" was followed. This ensured that the graphics were focused on a specific topic, used appropriate data, and were presented from the right angle and form.
In hindsight, which key elements stand out since publishing the book?
Like with previous books, the first copy of this one was a special moment. But since James Cheshire was directly involved until the last minute, the final book was an even bigger surprise.
The project was educational for the team. In academics, people are often reluctant to iterate through ideas, but the coauthors were open to it. They learned a lot from each other about financial geography and visualization.
Share more about the spreads you really enjoyed.
The football spread was at the margins of Cheshire's interest but showed how football players are now assets that can be traded. It demonstrated the significant amount of money in football and the trading of these assets.
The Roman coin visual was another favorite. It started as a simple map of dots showing the counts of where coins were found, but it required a lot of iteration to ensure the researchers were happy with the final graphic and its interpretation.
The US ratings visual also stands out, showing the disparities in credit ratings across different parts of the US. It highlights the long-lasting inequalities in the system.
The Quantified Customer: Credit-scoring algorithms try to predict the future, renewing inequalities of the past.
The image shows a heat map of the USA illustrating the percentage of the population with subprime credit scores by county in 2021. It reveals the entrenched inequalities in the credit system and how they affect individuals.
These visualizations bring to light important societal issues related to credit and its allocation.
When we’re creating data visualizations, we’re still looking to persuade people of an idea, potentially. We’re still looking to find new insights. We’re looking to bring people with us.
This is the essence of data visualization. Even in small visuals, the goal is to persuade, find insights, and engage the audience.
By thinking through the process, visuals become more compelling and have a greater impact on communication.
World of Crises: The history of capitalism is peppered with financial crises, but their type and frequency vary from region to region.
The image shows financial crises across the globe by decade from 1600-2020, highlighting the regional differences in financial crises.
This visual helps us understand the patterns and variations of financial crises over time and across different regions.