Systemic Risk


Written by Enrique Lendo, Business Development Mexico Advisor.


The World Economic Forum (WEF) released its 2021 Global Risk Report last week. Climate and environmental risk were ranked at top in its tables in terms of likelihood and second, after Infectious diseases, in terms of impact. It is highly likely that a standard will be set for countries and companies where climate impacts will be perceived as riskier than economic, geopolitical and technological ones.

Climate change impacts capital markets through two types of risk. The first one is Physical Risk which results from damages to property, infrastructure and land. The other one is Transitional Risk which is associated with changes in regulations, technology and consumer/investor preferences towards low carbon economic growth. Risk exposure varies from one country to another depending on geographical, physical and economic conditions. Mexico is a highly vulnerable country, with a high physical risk profile, due to its geographical location between two oceans, complex topography and irregular human settlements.

In 2020, global greenhouse gas went down 7% due to mobility restrictions from the Pandemic. However, temperature records were broken once again with a cumulative increase of 1.25 °C with respect to industrial levels. To avoid catastrophic impacts, scientists recommend global temperature increase to stabilize at 1.5 °C by the end of the century, leaving a very limited space for maneuvering.

At higher temperatures, climate impacts and associated physical risks exacerbate. According to Swiss Re, 2020 was the fifth costliest year for insurance companies in 40 years, with $83 billion dollars in losses. Cyclone Amphan displaced 4.9 million people in India and costed $13 billion dollars in losses, while hurricanes in the United States and Central America displaced 200 thousand people and costed $40 billion dollars. For financial institutions, physical risk materializes through exposure to companies, buildings and countries which are impacted by climate change.  Insurance companies face losses and increase their sure primes, banks face loan defaults and assets in impacted zones tend to depreciate.

Transition risk has been increasing because more countries have committed to “net zero” targets and more consumers and investors demand companies to act responsibly. In his first day in office, Joe Bide signed executive orders to rejoin the Paris Agreement on climate change and revert Trump´s Administration initiatives that lowered standards on environment and climate change issues, while Janet Yellen promised to strengthen climate risk policies in the financial sector. Biden´s Administration will invest $2 trillion dollars to finance the transition towards low carbon growth and will sanction with trade tariffs polluting countries.

Climate risk is transforming capital markets. It is now riskier for banks and investment funds to finance oil and gas projects than clean energy ones, because the latter are more cost effective and better accepted by society. In 2021, global investment in clean energy will overtake investment in fossil fuels. Last week, Larry Fink, CEO of BlackRock, the largest asset management company in the world, sent its yearly letter to CEOs reaffirming its commitment with decarbonizing its assets.  Other financial industries, central banks and regulators around the world are following through.

Mexico´s prime trade and investment partner is committing to a low carbon future while the financial industry is embracing and unprecedented transformation. Oil and gas companies are reinventing its strategies and citizens demand greater responsibility from governments and corporations. Mexico is one of the most vulnerable countries to climate change impacts.

What will its strategy be to manage risk and capitalize the transition?

Article originally published in Reforma news paper.

ENGRAW, a carbon-neutral committed company

ENGRAW contracted ALLCOT Group’s services for the ENGRAW’s 2019 Carbon Footprint report as part of its sustainability strategy.

ENGRAW is a company highly aware of caring for the environment. Its activity consists of processing mulesed-free Uruguayan wool, produced by healthy sheep and following the best livestock available practices. For the 2019 financial year, ENGRAW has decided to calculate its Carbon Footprint for the first time by turning to the expert company in Sustainability Services, ALLCOT Group.

The Carbon Footprint is calculated to know the amount of greenhouse gases (GHG) that are emitted directly or indirectly into the atmosphere as a result of the company’s activity. When referring to the carbon footprint of a company and the emission sources that are analyzed in its calculation, we use the term ‘scope’, classifying it into scope 1, 2 and 3. The scope of the calculation can be more or less ambitious depending on the interests of the company.

ENGRAW, being a company with a strong environmental commitment, has decided to calculate its carbon footprint at the corporate and factory level, covering the 3 scopes as follows:

  • Scope 1: GHG emissions associated with the direct consumption of fossil fuels for the operation of internal machinery, as well as the supply and treatment of water necessary for the development of production: boilers, forklifts, and utility vehicles.
  • Scope 2: indirect GHG emissions associated with the generation of electricity acquired and consumed by ENGRAW facilities. However, as this electricity was generated by its own wind turbines, these emissions were not accounted for.
  • Scope 3: Other indirect emissions such as water consumption and treatment, travel, accommodation, and waste.

On the other hand, ENGRAW has allocated part of its facilities to a tree plantation that is irrigated with treated effluent water from the company’s mill. ALLCOT Group, as an expert developer of climate change mitigation projects, has calculated the total equivalent tons captured from the atmosphere by this plantation, proving that not only does it contribute to the water reuse process, but that the plantation itself acts as a CO2 capture mechanism, mitigating ENGRAW’s environmental impact.

As an objective for 2021, ENGRAW will include in the scope of its next Carbon Footprint report its suppliers of wool raw material. In this way ENGRAW increases its ambition towards its goal of becoming a carbon neutral company.


NOTE FROM FEDERICO RAQUET- Managing Director of Engraw

Last but not least, we applied for the green export award in Uruguay a few weeks ago. Your report was submitted to endorse our environmental impact. Last week we were awarded the prize as the most environmentally friendly large export company in Uruguay. So thank you for your contribution to this achievement that made us very pleased.

Engraw Website.

Veloce Racing becomes first Extreme E team to commit to net-zero carbon target as it joins forces with ALLCOT Group

  • Veloce Racing leading the net-zero carbon charge in pioneering all-electric off-road series.
  • Team aiming to drive change in motorsport industry by joining forces with sustainability solutions provider.
  • ALLCOT to measure and help offset all of team’s pre and in-season carbon production.

Strengthening its resolve to lead the way both on and off the track during the inaugural campaign of Extreme E next year, Veloce Racing has become the first of the innovative electric off-road series’ teams to announce a carbon offset partner, after reaching an agreement with ALLCOT Group.

ALLCOT is a global authority in carbon-offsetting and sustainability initiatives, and teamed up with Extreme E in September with the goal of achieving a net-zero carbon footprint by the end of the championship’s first season.

With environmental sustainability at the very heart of Veloce Racing’s core values – as one of the London-based outfit’s four main pillars, alongside gender equality, automotive electrification and engaging new audiences through esports – the team was eager to make a similar commitment and is the first Extreme E entrant to take this significant step.

The agreement will see ALLCOT measure and help Veloce Racing to offset all of the carbon produced from the moment that the team signed up to compete in Extreme E in September, 2019 – covering the full build-up to the series’ maiden campaign as well as the entire season of racing next year.

Veloce Racing is firmly focussed on its net-zero carbon objective stretching into 2021 and beyond, and in ALLCOT, the team has the perfect partner. The organisation’s tireless work to reduce carbon emissions directly supports the United Nations’ Sustainable Development Goals, which call upon governments, businesses and communities to protect the planet and put an end to poverty.

In addition to its carbon offset pledge, Veloce Racing’s sustainability credentials will be further enhanced by Extreme E’s environmental ethos. All competing cars will be 100% electric, zero-emission vehicle charging will use Hydrogen Fuel Cells generated by water and solar energy, limited team numbers will be permitted on-event and all freight and logistics will be transported to race locations by boat, which it is estimated will reduce carbon by two-thirds in comparison with air travel.

Daniel Bailey, CEO, Veloce Racing, commented:

“Partnering with ALLCOT Group is a significant moment in Veloce Racing’s journey. Ever since our organisation was founded, we have prided ourselves on being pioneers and leading the way amongst our peers – and sustainability has always been one of our three core pillars.

ALLCOT Group’s philosophy perfectly matches our own, and offsetting all of our carbon emissions from the moment we joined Extreme E over a year ago is a key element of our participation in this unique championship. We are fully committed to playing our part in the preservation of our planet – and we look forward to working closely with ALLCOT Group to achieve our net-zero carbon objective.”

Alexis Leroy, CEO, ALLCOT Group, commented:

“This landmark partnership with Veloce Racing is a great opportunity to open the path to sustainability leadership not only with Extreme E but also with its main stakeholders, the teams.

“We welcome Veloce Racing’s leadership and look forward to showcasing impacts compensation beyond greenhouse gas. Working hand-in-hand with Veloce Racing in that respect will allow us to send a strong message within the world of motorsport as we hope this initiative will build traction among its peers.”

The 2021 Extreme E season is set to begin in Al-Ula, Saudi Arabia (20-21 March) before moving on to Dakar, Senegal (29-30 May), Kangerlussuaq, Greenland (28-29 August), Para, Brazil (23-24 October) and Tierra Del Fuego, Argentina (11-12 December).

About Veloce:

Veloce is a London-based organisation that focusses on disruptive areas of the sports and entertainment industries – specifically, esports and sustainable, EV motorsport. The brand comprises established professional gaming organisation, Veloce Esports and Extreme E outfit, Veloce Racing with both teams falling under the overarching Veloce umbrella. As a whole, the business occupies the fastest-growing sectors in motorsport.

Veloce Racing was born from Extreme E’s vision of sustainability-focussed, content-rich and gender-equal sport. The team’s remarkable leadership line-up is spearheaded by legendary Formula 1 designer Adrian Newey and Formula E Champion and ex-Formula 1 driver Jean-Éric Vergne. They are joined by a host of other industry entrepreneurs and innovators who are eagerly awaiting the start of the inaugural 2021 season. Extreme E is an innovative new motorsport championship that sees electric SUVs going head-to-head in areas of the world that have been damaged by climate change or environmental issues.

The Veloce Esports’ driver stable includes many high-profile drivers, influencers and teams from across the globe. Among them are the official McLaren Racing, Alfa Romeo, Sauber and YAS HEAT esports programmes as well as YouTube sensations Tiametmarduk, Aarava, Xpertgamingtech and Lando Norris’ Quadrant channel to name but a few. The organisation’s digital broadcast network, across its various channels, generates in excess of 130 million views per month.

About ALLCOT:

ALLCOT is a veteran project developer offering knowledge, expertise, and management to initiatives that reduce greenhouse gas (GHG) emissions to actively combat the climate crisis under Article 6 of the Paris Agreement is aligned with the 2030 Agenda and its 17 Sustainable Development Goals (SDGs).

ALLCOT is a leading actor in the climate and sustainability impact markets and is recognized as one of the established companies in the sector that has been building a strong reputation in environmental project development and the development of corporate sustainability services in their home and emerging markets.  Developing their own emission reduction projects, ALLCOT supports companies and public bodies to improve their sustainability performance by offering consulting services under various carbon quantification standards (CDM, VCS, GS) and for various sectors (forestry, waste, renewable energy, transport, sports) covering the entire carbon credit value chain for its later management in the markets created under the Paris Agreement.

 

RELATIONSHIP BETWEEN SUSTAINABLE DEVELOPMENT OBJECTIVES (SDGS) AND THE WINE SECTOR


Written by Karen Vega, Business Development Specialist.

 


Times are hard all over the world because of the social, health and economic crisis caused by the pandemic. In these times of great uncertainty and in this critical economic situation, the wine sector, along with other agricultural sectors, will have to intensify their environmental efforts in line with the European Green Pact and the ‘From Farm to Fork’ and Biodiversity strategies.

The European Green Pact establishes an action plan for:

  • Encourage efficient use of resources by promoting practices towards a clean and circular economy.
  • Restore biodiversity and reduce pollution.

Many winegrowers and their cooperatives have been strengthening their sustainability policies in recent years, placing great emphasis on the mitigation of their emissions. Viticulture is an essential part of rural ecosystems and offers a range of benefits that go far beyond wine production. However, in order to achieve the objectives of the European Green Pact, viticulture must have the opportunity to invest in the protection of its natural resources and have adequate guidance and support from government institutions.

Among the main advantages and benefits of the implementation of sustainable practices are: increased energy efficiency, access to specific financing programs for sustainable products, improved commercial image, mitigation of economic risks due to future legislation, transparency and increased confidence of their stakeholders and cost optimization throughout the value chain.

Main SDGs involved in the wine sector:

Companies can have a great positive impact on society by promoting responsible consumption and a healthier lifestyle. On the other hand, they must also improve working conditions throughout the labor chain, ensuring the physical and emotional integrity and safety of their workers.
Promote and invest in content of interest related to the wine sector and sustainable lifestyles to ensure access to employees with skills that meet future business needs.
Also the realization of internal training plans that help to improve the awareness and efficiency of employees.
On the one hand, implement training and support programs and, on the other hand, invest in the integration of technology into agricultural systems as a key facilitator to create opportunities for women to participate in viticulture and at the same time fulfill family responsibilities.
Apply precise agricultural technologies that enhance productivity and minimize water use. This includes drip irrigation systems, water quality control, efficient crop rotation and field application methods, waste control, efficient use of water both for grape washing and at the infrastructure level, etc. This also enhances the resilience of the sector to imminent climatic variations such as drought.
Sustainable initiatives in the wine sector include the adoption of measures that ensure decent, fair and inclusive work: fair labour contracts, flexible working hours, breaks, eradication of child labour. On the other hand, especially in these difficult times, we must promote the creation of synergies with other sectors such as tourism and hotels.

From the point of view of infrastructure, seek investment to support the development of agriculture and markets that include water, connectivity/technology, roads, storage logistics, etc. In this way, the social and technological occupation and development of agricultural areas is promoted.

Wine, being an agricultural product with high added value, is an economic activity that contributes significantly to the establishment of population in rural areas. Its good practices can safeguard the natural heritage of the surrounding areas, promote urbanization and transport plans, improve air quality in the surrounding communities, etc.

Organic farming is the most responsible way to produce food. It is necessary to put in value the commitment to ecological viticulture and sustainable production: to promote recycling, the reuse of organic material either in the manufacture of compost or in the generation of energy from biomass, etc.

Reducing the environmental footprint by implementing new practices and technologies such as the use of renewable energy, reduction of logistic flow, optimization of water use, reduction of greenhouse gases and other pollutants, among others. On the other hand, the cultivation hectares are also used for projects to fight climate change such as CO2 sequestration.

 

The absence of systemic pesticides and herbicides allows and favors a rich variety of both plant cover and insects and birds in the organic vineyard.

 

 

Plastic Waste Reduction Standard


Written by Alfredo Gil, Climate Change Waste Manager.


Our daily life is surrounded by plastic. Due to its high versatility, low price and properties (flexibility, durability and
lightness) it is present in packaging, clothing, construction materials, all kinds of objects and even as an ingredient in cosmetics. However, plastic is also often associated with the "use and throw away culture" since much of this material is used to manufacture a wide variety of containers that have a very short useful life. The simple gesture of throwing a plastic bottle on a beach takes about 500 years until it completely decomposes on the seabed. 8 million tons of plastic waste reaches the seas and oceans annually. This amount is equivalent to the weight of 800 Eiffel Tower, it could cover 34 times the island of Manhattan or equal the weight of 14,285 Airbus A380 aircrafts.

Currently, the most effective solution, when it is not possible to avoid its use or generation at source, consists of the recovery and recycling of these plastic waste. In order to encourage and evaluate the impact of this type of initiative, VERRA, with the support of the 3R Initiative, will launch the new “Plastic Waste Reduction Standard” in early 2021. This program aims to maintain consistent accounting and accreditation of a wide variety of plastic recovery and recycling activities anywhere in the world and to promote funding for projects that increase the recovery of plastic waste from the environment and / or its recycling. The Program will allow projects to be independently audited to determine to what extent they have reduced plastic waste and / or increased recycling rates. The so-called “plastic credits” will be equivalent to one ton of recovered or recycled plastic and will be issued based on the amount of plastic that is collected and recycled above the reference rates (usual or imposed by regulations) in each region.

These methodologies provide procedures for estimating net plastic waste recycled through mechanical recycling activities. Eligible initiatives will be the installation of new recycling facilities, capacity increases or technological improvement in existing recycling facilities, recycling of types of materials (including packaging) that have not been previously recycled in an existing facility, as well as incentivizing or facilitating the increase in the collection of plastic waste. The new program also establishes procedures to estimate the net plastic waste removed or diverted from its destination or usual final disposal through formal and informal recovery activities, with the aim of preventing this plastic from remaining or ending its life cycle in the environment.

Although this program is still in development and in public consultation phase, the technical department dedicated to the waste management sector at ALLCOT is already working on the use of these new methodologies to evaluate, develop and certify the first recycling and recovery of plastic waste projects in the VERRA registry. ALLCOT offers technical support throughout the initial evaluation process of eligibility under the new program of the different initiatives, the development of the project design documentation and the necessary calculations to determine the volume of “plastic credits” that will be generated. Once the project is registered in the program, ALLCOT will participate in the development of the Monitoring Reports and the periodic verification process.

Through participation and development in these new plastic waste recycling and recovery projects, ALLCOT continues to align its activity as always with the objectives established by the 2030 Agenda. These projects, framed in the “Plastic Waste Reduction Standard” will contribute decisively to the following Sustainable Development Goals: 9. Industry, innovation and infrastructure, 11. Sustainable cities and communities, 12. Responsible consumption and production, 14. Life bellow water and 15. Life on land.

 

From ALLCOT we offer our clients a wide range of possibilities to strengthen their strategy and message on sustainability.

Written by Natalia Rodrigo Vega, Head Group Business Development ALLCOT.


Established in 2009, ALLCOT is a veteran project developer offering knowledge, expertise, and management to initiatives that reduce greenhouse gas (GHG) emissions to actively combat the climate crisis under Article 6 of the Paris Agreement is aligned with the 2030 Agenda and its 17 Sustainable Development Goals (SDGs).

ALLCOT develops emission reduction projects under various carbon quantification standards (CDM, VCS, GS) and for various sectors (forestry, waste, renewable energy) covering the entire carbon credit value chain its later management in the markets created under the Paris Agreement.

ALLCOT supports projects, companies and public bodies to improve their sustainability performance by offering consultancy services, including the development of strategies to calculate, reduce and offset GHG emissions, as well as the identification of best practices for reporting on Sustainable Development Goals (SDGs).

For ALLCOT, sustainability has always been a priority on our agenda and modus operandi, is part of the DNA of all of us who make up ALLCOT. At ALLCOT we are committed to sustainability towards our employees. Without a sustainable model for our TEAM, it is difficult to sell a sustainable business model to outside.

Therefore, from our organization we promote flexibility and teleworking before the pandemic. The fact that our staff are masters of their time, without leaving aside their work commitments, improves their self-esteem and efficiency in their jobs and, at the same time, allows them to reconcile with their personal life, hobbies and other
obligations. In fact, we have seen that there has been no decrease in the response capacity during the pandemic and we have all been working at maximum capacity all these months.

The COVID-19 pandemic is significant threat to the health and well-being of billions of people around the world. As the world begins to open up from the blockages and enters a state of unprecedented vulnerability, or what many have called “the new normal” it makes sense to reflect on what we have learned, review our fundamental assumptions, and begin to chart a course to continue working TOGETHER to build a sustainable world.

Without a doubt, the pandemic has had a significant impact on our work. On the one hand, in view of our projects being implemented, the pandemic has made field visits impossible and follow-up and socialization work has had to be done remotely. This has not paralyzed our work, but it has slowed it down and helped to generate more uncertainty in the study of primary and secondary sources.

For this reason, ALLCOT has invested all its strength in seeking alternatives to these new uncertainties generated in the project and to be able to successfully close all its phases.
On the other hand, in relation to the projects that we had pending to execute, we have to adapt and reinvent ourselves to this “new normality”. The coronavirus pandemic presents an excellent opportunity for us to act in solidarity so that we may be able to turn this crisis into an incentive to achieve the United Nations Sustainable Development Goals.

Initially, our objective was focused on supporting companies and institutions, both in thepublic and private sectors, focused on leisure activities, events, catering and tourism. As a result of the pandemic, these sectors are defined as the most affected, so their financial capacity is limited to being able to continue their business and it is very difficult for them to make extraordinary investments. For this reason, from ALLCOT we have strengthened our scope of prospecting and opening business towards the food, energy and transport sectors.

From the company we offer our clients a wide range of possibilities to strengthen their strategy and message in sustainability. Our work relates to non-financial reporting, sustainability reporting, environmental footprint reporting (emissions, plastic) and our flagship product: the mapping, identification, quantification and monitoring of SDG.

ALLCOT has merged its know-how in climate change project development, being our strengths the development of quantification and monitoring tools together with its experience in sustainability to develop a unique and innovative tool. This tool helps us to know at regional (country, nation) and sector level, the degree of commitment and alignment with SDG and Agenda 2030.

Article originally published in Corresponsables.

Self-observation of corporate sustainability

 


Written by Diana Nicol Garzón , Project Management Coordinator Colombia.


We could start by asking ourselves why companies, social constructs with economic and value-added interests, are called upon to integrate into their philosophies concepts related to sustainability, sustainable and human development among other areas until now more related to the public sector and the third sector (non-governmental organizations)?

To address this question, it is enough to understand that companies base their essence on people, from any logic as a group of interest. With this understanding, from ALLCOT we recognize that as agents of change we deserve our stakeholders (customers, employees, collaborators, partners, suppliers, shareholders, among others) to continually rethink our practices with a comprehensive approach and continuous improvement, as well as making
sustainability a pillar of our organizational strategy.

As a result of the above, within our good practices we can observe: the calculation and compensation of our carbon footprint, the broad portfolio of strengthening our corporate social fabric that promotes a good work climate, good labor practices beyond those established by law, among other activities in each of the areas of sustainability as a broad concept.

During our decade of existence in the market and the continuous relationship of ALLCOT with other market players, we have had the chance to identify opportunities and challenges of corporate social responsibility and sustainability itself, which have allowed us to rethink for our clients, services more in line from the perspective of process improvement and corporate environmental strategy, offering specialized services of high added value such as mapping and quantification of the Sustainable Development Goals (SDG), SDG label, Life Cycle Analysis, among others.

 

EXTREME E TEAMS UP WITH ALLCOT GROUP TO SUPPORT NET-ZERO CARBON GOAL

Extreme E, the revolutionary electric off-road racing series, has agreed a partnership with ALLCOT to offset the championship’s carbon footprint in support of its goal to have a net-zero carbon footprint by the end of its first season.

ALLCOT, a world-leader in carbon offsetting and sustainability initiatives, develops innovative impact projects which enable businesses to support local communities to protect the environment by reducing their carbon emissions. These initiatives directly support the United Nations’ Sustainable Development Goals, which call on governments, businesses and communities to put an end to poverty and protect the planet

Alejandro Agag, Founder and CEO at Extreme E commented: “Our sustainability strategy is a crucial aspect of Extreme E so we’re delighted to be working with ALLCOT, a world-leader in climate change and sustainable solutions, to develop this strategy and enable us to support some truly transformational projects.

“Extreme E’s goal is to have a zero-net carbon footprint by the end of its first season, which means removing as many emissions as we produce. We plan to achieve this by following the United Nation’s framework which recommends reducing, measuring, and offsetting carbon emissions. The projects we will support will empower local communities to reduce emissions to help protect the planet, not just now but for the long-term.”

ALLCOT global community projects include the Brazilian Rosewood Protected Forest Project that safeguards 177,899 hectares of high conservation value rainforest, and a project in Mozambique that will replace 10,000 traditional cookstoves with new energy-efficient versions, reducing charcoal consumption by 50 per cent and in turn reducing gas emissions and usage of fossil fuels.

Alexis L. Leroy, Founder and CEO of ALLCOT, commented: “We are very excited to partner with Extreme E not simply with offset but with vanguard vision in term of sustainable strategy solutions, shifting from GHG compensations to Global Impacts, which is at the core of Extreme E’s values. Beyond, we see great potential in synergy with Extreme E and its technology partners to bring sustainable innovative solutions to remote communities.”

Extreme E is consulting with carbon measurement experts Quantis to calculate its corporate footprint and will continue to track and update this figure as its season unfolds.

As well as offsetting, Extreme E focuses on reduction of its footprint through a series of efforts which include;

  • Using 100% electric vehicles.
  • Zero emission vehicle charging using Hydrogen Fuel Cells generated by water and solar.
  • The series centrepiece, the RMS St. Helena ship, which has undergone extensive refurbishment to lower its emissions in order to transport the championship’s freight and logistics around the world. This is estimated to reduce carbon by two thirds in comparison with air freight.
  • Not having spectators at events. (Depending on the type and location of events, fans can represent 20 to 50% of the total footprint of an event once you consider their transport, food and beverage and merchandising).
  • Capping the number of members each team has on-site to just seven each – two drivers, one engineer and four mechanics.
  • Remote broadcast operations which involves using satellites to enable live editing and overlays to take place in a London studio.
  • The use of alternative fuel HVO (hydrogenated vegetable oil) generators instead of diesel counterparts for all on-site power needs.
  • Virtual, at-home hospitality experiences.

In addition to reducing, measuring and offsetting its carbon footprint, Extreme E has appointed an independent Scientific Committee, consisting of leading academics from The University of Oxford and The University of Cambridge, tasked with driving the series’ climate education and practice.

Extreme E will go racing in early 2021, visiting five environments around the world, including Arctic, desert, ocean, glacier and Amazon locations, which have already been damaged or affected by climate and environmental issues.

Inspiring its global audience to take action now, and leaving a lasting positive impact is a key element of the series, and working with organisations like ALLCOT ensures Extreme E is supporting and investing in the right projects with the biggest impact on the environment and its local communities.

Extreme E will use the mass appeal and following of sport to highlight the effects of climate change around the world, which include deforestation, melting icecaps, desertification, rising sea levels, plastic pollution and more, and will educate its fans with important messages around the reduction of our own carbon impact, including the promotion of electric vehicles and other clean energy mobility solutions for a lower carbon future.

To learn more about Extreme E, visit – www.Extreme-E.com

 NOTES TO EDITORS

About ALLCOT:

ALLCOT is a veteran project developer offering knowledge, expertise, and management to initiatives that reduce greenhouse gas (GHG) emissions to actively combat the climate crisis under Article 6 of the Paris Agreement is aligned with the 2030 Agenda and its 17 Sustainable Development Goals (SDGs).

ALLCOT is a leading actor in the climate and sustainability impact markets and is recognized as one of the established companies in the sector that has been building a strong reputation in environmental project development and the development of corporate sustainability services in their home and emerging markets.  Developing their own emission reduction projects, ALLCOT supports companies and public bodies to improve their sustainability performance by offering consulting services under various carbon quantification standards (CDM, VCS, GS) and for various sectors (forestry, waste, renewable energy, transport, sports) covering the entire carbon credit value chain for its later management in the markets created under the Paris Agreement.

About Extreme E:

Extreme E is a radical new racing series, which will see electric SUVs competing in extreme environments around the world which have already been damaged or affected by climate and environmental issues. The five-race global voyage highlights the impact of climate change and human interference in some of the world’s most remote locations and promotes the adoption of electric vehicles to help preserve the environment and protect the planet.

Another unique feature of Extreme E is its floating garage, the RMS St. Helena. The former Royal Mail cargo-passenger vessel is undergoing a modernisation and refit in order to lower its emissions. It will be used to transport the championship’s freight and infrastructure, including vehicles, to the nearest port, minimising Extreme E’s footprint as well as being used to facilitate scientific research through an on-board laboratory.

Extreme E is operated in association with Formula E – the organiser of the ABB FIA Formula E Championship. Extreme E is committed to sustainability and minimising environmental impact – as well as playing its part in re-building and restoring areas already impacted by climate change.

Renew or Die


Written by Enrique Lendo, Business Development Mexico Advisor.


Large oil and gas companies have been consolidating their positions in global markets with products that meet the needs of industrial production, mobility, electricity generation and other industries of modern economies. Without question, they are a strategic industry rarely challenged and even underregulated by governments. It has also been rewarded by capital markets with high rates of return and moderated risk factors despite their externalities. In 2020, five oil and gas companies toped the “Fortune 500” ranking. However, recent socio-economic trends will compel this industry to “adapt or perish”.

Firstly, innovation and technological development have boosted access to oil and gas substitutes along value chains in global and domestic markets. Renewable energy is gaining momentum due to reductions in the cost of production, increase of storage capacity and more reliable distribution technology. In 2020, 29% of electricity produced globally will come from renewable sources.

Secondly, oil and gas prices are extremely sensitive to fluctuations in international markets. Decreasing trends in oil demand for the past few years were exacerbated by mobility and other restrictions imposed to address the Covid-19 pandemic. In the first semester of 2020, oil demand faced a 20% contraction and prices went down to levels not seen for decades.

Thirdly, climate change impacts have made evident the urgency to transit towards a low carbon development model. In 2015, over 190 countries subscribed the Paris Agreement with the objective to stabilize the increase in global temperature at 1.5 °C by the end of the century. The energy sector contributes with over 70% of global greenhouse gas emissions and, according to the Intergovernmental Panel on Climate Change (IPCC), oil and gas production will have to decrease 55% by 2050 to meet the Paris Agreement goals.

Provably, the decisive factor to drive the transformation of the oil and gas industry will be the emerging perception of climate risk in capital markets. Last month BlackRock, the largest asset holder in the world, punished 53 companies due to its weak performance on climate action, including some of the largest oil and gas companies. In the same line, international financial groups are introducing specialized climate solution tools. City Group recently set a $250 billion dollar climate financing target by 2025 and Morgan Stanley will become the first large American bank to publicly disclose the climate change impact of its products.

It is in this context that oil and gas companies with long term vision have begun adapting to the changing environment. This past June, the Oil and Gas Climate Initiative, which gathers a group of companies with a 30% of the production share in the industry, subscribed a carbon intensity reduction target consistent with the Paris Agreement. And last week, British Petroleum (BP), the fourth largest oil company in the world, released its strategy to reach carbon neutrality by 2050, which will very likely set a new benchmark in the industry. BP will go from an oil company to an energy solutions corporation charged with renewable and low carbon products in its portfolio.

In the framework of the Covid-19 economic crisis, even the most polluting companies and industries are presented with the opportunity to reinvent themselves to survive in the long term. What path will Pemex and Mexican energy companies chose?

Article originally published in Mexico´s newspaper Reforma.</span