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HomeMy WebLinkAboutFidelity Westlake Solar Introduction 2019-10-28FIDELITY INTERNAL INFORMATION October 28 2019 WESTLAKE SOLAR ARRAY Brian Daigle Vice President, Energy and Infrastructure Fidelity Investments 1 Working Session with Westlake Town Council FIDELITY INTERNAL INFORMATION2 Why is the Westlake solar array important to Fidelity? It’s a business requirement – •Carbon neutrality is part of our broader environmental sustainability strategy which is driven by business demand. •Our stakeholders… clients, employees, the general public and the communities that we operate in… expect us to be responsible citizens minimizing and mitigating our impact on the environment. Solar energy generating facilities are a friend of the Texas electricity grid (ERCOT) in times of stress - •Solar peak output coincides with Texas electricity grid peak demand, thus easing grid stress during high demand periods. •Summer 2019 was record year -The regional grid (ERCOT) experienced historically high demand and was stressed. •Unlike gas-fired, coal, or nuclear generation, solar does not use water, which is an important commodity in north Texas. It’s a good long term investment for Fidelity and the Westlake Community - •Investing in the environment around us, including solar energy, is no different than any other investment that Fidelity makes… we’re in it for the long haul. •We believe that the solar array makes sense for both Fidelity and the Westlake community to foster resilience and economic vitality with more strategic resource consumption. •We demonstrate by example because we ask the companies that we invest in for climate related financial disclosures because climate impacts are material to macro-economic, and therefore financial, performance. Notes: 1 –ERCOT –Electricity Reliability Council of Texas 1 1 FIDELITY INTERNAL INFORMATION Historical Context: Environmental Sustainability In the context of program scope/impact evolution GOOD RESOURCE STEWARD Aligning with Kaizen and efficiency Water * Energy * Paper MARKET DEMAND Increasing business need for sustainability •Client RFPs for new / renewal business •New graduate “green pledges” •Associate green ideas in contest FORMAL PROGRAM Fidelity adopts a sustainability position •Environmental Sustainability Policy •Steering Committee •Sustainability Officer •Internal communications •Benchmarking •GHG measurement COMMITMENT & COORDINATION Taking a strategic position and planning for the next steps •Program priorities •Rolling three-year goals •Cross-enterprise coordination •External reporting and disclosure •ISO 14001 •Investor Center certification •Renewable energy pilots •Citizenship policy •Large-scale renewable energy •EV/LEV benefits •Elimination of styrofoam •Innovation pilots •Sustainability office •UN PRI •CSR funds •Associate engagement •Social media CORE BUSINESS BIG PLAYS Extending sustainability to the core financial business and pushing forward new initiatives •Progress metrics •Scan, Try, Scale ideas •Integrate ESG efforts cross-enterprise •Establish enterprise ESG strategy •Materiality analysis •Enterprise resiliency analysis •External partnerships •Associate empowerment •Integrated messaging internally /externally •Transparent disclosure •Stakeholder engagement BUSINESS INTEGRATION & OUTREACH Fully integrating sustainability into enterprise strategy and daily operations up to 2005 2006-2007 2008-2010 2011-2013 2018-20202014-2017 Market Demand has driven the need for an enterprise focus on sustainability FIDELITY INTERNAL INFORMATION Context: Corporate Citizenship at Fidelity - 50 % of Fidelity’s Carbon Footprint is from Electricity Usage Greenhouse gas emissions Conserving resources External Partnerships Governance & Certification Supply chain Associate experience Diversity and inclusion Community involvement Charitable giving Sponsorships Ethical conduct Supplier risk Information security Privacy Business continuity Environment Making a positive impact for a more sustainable future Social Fostering the well-being of our communities Governance Conducting our business in a responsible manner Reporting Industry Collaboration Investment Integration Client Choice Points of View Products/Services Integrating responsible offerings across our portfolio FIDELITY INTERNAL INFORMATION Sample Sustainability Program Metrics / Goals Program performance 2007 -2018 5 Energy conservation and demand management have played an important role over the years, however, material reductions in CO2 emissions now require a commitment to renewable energy FIDELITY INTERNAL INFORMATION Commitment to Renewable Energy Nearly $50M Invested in Solar –Path to 50% Renewable Not and Easy One 6 289 243 144 31 4 4 6 1 45 54 Boston Net of PPAWestlakeRhode Island North Carolina Electricity Usage New Hampshire PPAElectricity Net of Solar PPA -16%-50% Notes: 1 –Highest annual energy production 2 –PPA –Power Purchase Agreement with assets owned/operated by others •Fidelity interest in solar energy investments is driven by the following: •Visibly demonstrates Fidelity’s commitment to renewable energy •Owned renewable assets play a key role in enterprise renewable energy strategy •Positive reception of on-campus projects by the associates and the community (i.e. New Hampshire, Rhode Island) •The Westlake solar array would be the most productive1 energy asset in Fidelity’s portfolio Energy Usage/Production (Giga-Watt Hours) Nearly $50M Invested Proposed 2