Hannon Armstrong’s 2018 ESG Report: Investing in Climate Change Solutions
April 24, 2019 - Hannon Armstrong (NYSE: HASI), a capital provider focused on sustainable infrastructure markets that address climate change, today announced that its inaugural 2018 ESG Report is available online.
“The principles of environmental, social, and corporate governance have long been embedded in our corporate DNA and we recognize the importance of transparency in reporting our impact,” said Jeffrey Eckel, chairman, president & chief executive officer, Hannon Armstrong. “We are pleased to share our approach to ESG integration across our company, including in our investment process – where the most meaningful environmental impact is achieved – as well as within our corporate culture and employee experience. Our employees’ commitment to advancing these types of initiatives is inspiring and I am honored to work alongside them with a shared sense of purpose and mission.”
What it Means to Invest in Climate Change Solutions
Our investment thesis states that in a world increasingly defined by carbon, we will make superior risk-adjusted returns investing on the right side of the climate change line. As such, any proposed investment must either reduce or be neutral on carbon emissions or have some other tangible environmental benefit such as reducing water consumption. We believe we are the first public company to make such a commitment, having focused on these types of investments for over 30 years.
With approximately $1.2 billion in new investments completed in 2018, we estimate that a total of 496,000 metric tons of CO2 emissions will be avoided annually, with a CarbonCount® score of 0.42 metric tons of CO2 emissions avoided per $1,000 invested. CarbonCount continues to be our true north in quantifying environmental impact, as it removes the ambiguity of the word "green” and sets the bar for other capital providers’ environmental impact reports.
Additionally, the 2018 ESG report illustrates Hannon Armstrong’s efforts to implement the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. The recommendations of the TCFD are focused on four thematic areas that represent core operational elements, including: (1) governance, (2) strategy, (3) risk management and (4) metrics and targets. We believe that our core principles are in substantial alignment with the goals and objectives contemplated in these TCFD themes and we address each of them in our management and decision-making processes as well as in our public disclosures, including in our 2018 Form 10-K. Hannon Armstrong is among the first public companies to report in line with the TCFD recommendations.
Highlights from the 2018 ESG report include:
- Financed $1.2 billion in climate change solutions
- Formalized board of directors oversight of our ESG strategies, activities, policies, and communications
- Established an internal cross-functional ESG Committee
- Implemented the recommendations of TCFD in our financial filings
- Became a signatory to the United Nations Global Compact
- Enhanced and further defined our Sustainability Investment Policy and our Environmental Policies
- Formalized and documented our Human Capital Management and Human Rights Policies
A full version of the Hannon Armstrong ESG Report is available at www.hannonarmstrong.com/ESG
A Call for Carbon Pricing to Address Climate Change
Given the continued rise of global carbon emissions, green investments and sustainable business operations are essential components of climate action, but the urgency of climate change requires business leaders to do more. That’s why we actively engage in environmental discussions to advance policies that reinforce our stringent and transparent corporate sustainability standards.
On this front, the release of the 2018 ESG report comes on the heels of Hannon Armstrong’s 2018 Annual Report and letter from our CEO, Jeffrey Eckel. In the 2018 letter to stockholders, Mr. Eckel outlines the need for a carbon tax and dividend plan in the U.S. to meaningfully address the systemic threat of climate change. The full text of his letter is available at www.hannonarmstrong.com/about/annual-letter/
About Hannon Armstrong
Hannon Armstrong (NYSE: HASI) focuses on solutions that reduce carbon emissions and increase resilience to climate change by providing capital to the leading companies in the energy efficiency, renewable energy and other sustainable infrastructure markets. Our goal is to generate attractive returns for our shareholders by owning a diversified portfolio of investments that generate long-term, recurring and predictable cash flows from proven commercial technologies. Hannon Armstrong is proud to be the first U.S. public company focused exclusively on making investments in climate change solutions. We are based in Annapolis, Maryland. For more information, please visit www.hannonarmstrong.com. Follow Hannon Armstrong on LinkedIn and Twitter @HannonArmstrong.
Forward Looking Statements
Some of the information in this report alert contains forward-looking statements and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this report alert, words such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," "target," or similar expressions, are intended to identify such forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption "Risk Factors" included in our Annual Report on Form 10-K for our fiscal year ended December 31, 2018, which was filed with the U.S. Securities and Exchange Commission ("SEC"), as well as in other reports that we file with the SEC.
Forward-looking statements are based on beliefs, assumptions and expectations as of the date of this report alert. We disclaim any obligation to publicly release the results of any revisions to these forward-looking statements reflecting new estimates, events or circumstances after the date of this report alert.