For billion of years the sun has risen every morning and will continue to do so, well after we are gone. Let’s forget about the Cov19 for a second and let’s look to a brighter future.
To say that COV19 has massively impacted our day to day is an understatement. These are unusual days, in which for the first time in our adult life we can’t do what we want and do it the way we want to.
When people complain about being stuck in their homes, my sons rightly point out that their late grandfather, who was stuck for 5-years in a Siberian prisoner of war camp, had it much worse. What are a few weeks of health induced lockdown vs. prisoner of war camp?
Lockdown will be over sooner or later, and then the world will be back to normal. Will it or shall it? We think there will be a new normal, with changed patterns and behaviors:
- Will we travel as much as we used to? We doubt it. Some airlines will fold, removing volume, which most likely will force ticket prices up, limiting the affordability.
- The fear of disease will stay with us for a while. The now exposed fragility of certain health systems, will limit our desire to visit those countries.
- The hospitality sector will suffer, and probably result in fewer hotels, coffee shops, and restaurants, as some will close their doors for ever.
- Will the office sector change? Possibly, a new work model will evolve, reducing office commutes and transforming the demand for office space.
- The above will result in increased structural unemployment numbers.
- Taxes will probably need to rise, as the various emergency program will need to be paid for, sooner or later.
Now to the silver lining and our opportunity for a “Green Renaissance”
The intellectual basis of the Renaissance in the 15th -16th century, was” humanism” derived from the rediscovery of classical Greek philosophy, such as “Man is the measure of all things.”
Has the 21st Century discovered “naturalism”? The philosophical belief that “everything arises from natural properties and causes”, which is embedded in the sustainability value system, driving SDG’s and ESG’s.
We’re always going to face different crises, but the climate emergency isn’t going anywhere and we need to act now.
Having experienced improved air quality in many regions, we would like to keep it this way. Clean air is not an “either” “or” choice, but it should, like clean water, be a basic human right. No need to be a Nobel prize scientist, to see the correlation, between the worst air quality, and the highest death rates from Cov19.
The Cov19 induced “economic pandemic” in a globalized world will leave its ravages. Stock markets around the world are down by 25 to 30%, having priced in dark future economic scenario. We should however take comfort from the resilience of the ESG Investment sector, accounting today for USD 137.3 Bio., of assets, having faired substantially better than the overall market place.
New business models will emerge. Should we move from “ownership” to “usership” for cars, appliances, on an “as a service” basis. This would strongly play into the hand of the circular economy.
Today’s appliances, heating and lighting systems are up to 70 % more efficient in consumption and emissions. With empty wallets the population, and companies with ravaged balance sheets will not change their appliances to reduce their emissions.
But, if they would derive a monetary benefit, not need to pay for these exchanges upfront, whilst paying from the savings, and have the feel-good factor they would engage.
It would be easy, to embark on a large-scale retrofitting initiative, which the ESG sector would pre-finance, to be paid back from the shared savings, whilst generating substantial emissions reductions. This could re-launch economic activity, would reduce unemployment as appliances need to be fitted, whilst reducing emission.
Welcome to the world of EnerSave Capital, the ESG focused advisory company for energy saving solutions on an “As a service” basis. On a one-stop-shop basis, we support industry and ESCO’s to seizing today’s large-scale energy saving opportunities and to make a cleaner and healthier world become a reality.
Never forget ‘A society grows great when old men plant trees in the shade of which they will never sit in’ (Greek proverb). This is why our approach at EnerSave Capital is a triple win for all.