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Climate change does not have a technology problem; it has a political problem. The challenge is not only in the traditional sense of politics, but also in the structural barriers that prevent the full transition to a clean energy economy. The electric utility sector is a prime example of how doing business as usual gets in the way of taking meaningful action to address climate change risks. One idea for addressing this challenge is the energy as a service (EaaS) model.

One huge problem utilities, and their customers, face today

Currently, electric utilities are designed to sell units of electricity. That reality drives business decisions based on the amount of electricity sold, regardless of other costs, such as social or environmental costs. Although some utilities factor in such costs into how they price their services, it is not the prevalent method that U.S. utilities have adopted.

In order to transition to a clean energy market, certain barriers must be overcome: in particular, high upfront technology costs. Further, capital constraints on the customer side, as well as uncertainty about the efficacy of a certain technology’s performance, can also hinder a utility’s efforts to invest in new technologies.

For electricity, energy efficiency has been a conundrum: States set energy demand reduction goals that utilities have to meet, but a reduction in demand also means a reduction in revenue under current business models. Thus, utilities are disincentivized to invest in energy efficiency technologies. In addition, upfront costs present an obstacle for both the utility and the consumer. This leads to underinvestment in energy efficiency, despite its clear financial and environmental benefits.

What is energy as a service, and how can it help take on climate change?

Because of the market opportunity created by this investment gap, a new model of service within the energy efficiency space has emerged.

Now, EaaS offers one potential solution for evolving the business model to renewable energy as well. And as companies set increasingly ambitious climate change goals, sorting out how to meet them in a cost-effective manner has become a priority.

One way to think of EaaS is the combination of technology and energy that operates as a subscription service. The customer pays for a bundle of energy technologies, rather than the amount of electricity it consumes. Further, the customer is not tied to a particular type of technology, as the the EaaS provider finances and manages the entire energy efficiency program.  Therein lies the evolution of the energy service company (ESCO), which can provide demand and supply energy efficiency solutions and takes on any risk that the customer would have otherwise assumed.

How EaaS helps with both budgets and sustainability

Ameresco, a renewable energy and energy efficiency company, has been advancing EaaS as a solution for its customers’ problems. “Many of our customers come up with admirable sustainability goals on top of a laundry list of deferred maintenance needs, with more capital needs than available capital,” Lou Maltezos, Executive Vice President of Ameresco, told TriplePundit in a recent interview. “We step into the breach to tie all those pieces together.” 

What that means in practice is developing an energy plan that contains costs while also meeting sustainability goals. It also delivers flexibility based on the customer’s needs. For example, Ameresco worked on a project - the U.S. Marine Corps Recruit Depot (MCRD) Parris Island - that places an extremely high value on resilience given the installation’s locations and missions.

For MCRD Parris Island, Ameresco deployed extensive energy efficiency upgrades, installed battery energy storage systems and launched microgrid technologies to enable better control over the energy system as a whole. “Parris Island was a huge project,” Maltezos told 3p. “It was extremely complex, with a mission-critical campus. We had to take a more robust approach.”

As for financing, Parris Island did not put up any money upfront as the entire project was conducted under an energy savings performance contract (ESPC), a standard model in energy efficiency projects done by ESCOs. Such an ESPC enables Ameresco to assume the risk for designing and commissioning a project, while receiving a service fee under the agreement’s terms. Ameresco will receive payments once the systems have started working. Maltezos noted that it anticipates $7 million in savings from reduced utility costs after one year of operation, giving Parris Island more bang for the buck - and with less risk.

The future of EaaS

ESPCs are a proven model for deploying energy efficiency, and increasingly, EaaS is seen by commercial and industrial customers as a solution for taking on climate change. EaaS could help customers integrate better demand-side management, deploy more renewable power technologies, and encourage electrification of facilities and buildings.

Some utilities are starting to notice the benefit of EaaS for their own operations, allowing them to redesign their traditional business models. As more utilities get involved, the range of services and service providers increases. Because of this, companies such as Ameresco view their projects as opportunities to develop long-term partnerships.

For example, a recently announced project with Northwestern University will enable the university to look at the entire campus and take on aggressive sustainability goals and address deferred maintenance needs over the course of several years. As part of the partnership, Ameresco will also offer sustainability fellowships, helping provide a roadmap for work with other higher ed institutions.

As more sectors, such as transportation and telecommunications, are digitized and modernized to fit the needs of the customer, it makes sense that the power generation sector will follow that path. Adequate policies still need to be put in place, but EaaS can provide a solution to help overcome barriers to addressing climate change risks while securing a clean energy future.

Image credit: Matthew Henry/Unsplash

When international organizations and nonprofits launch projects worldwide, usually they are in regions such as India, Africa and some parts of Latin America. The reasons are all over the map: an opportunity to show some “doing good,” a recognition that renewables can work as a leapfrog technology when there is no reliable grid in the first place – and quite frankly, sometimes the driver is white savior complex.

Meanwhile, other areas that could use such investment, such as parts of rural Latin America, the Balkans and the Caucuses, are often overlooked.

One organization that has gone against the grain when it comes to investing in renewables is Masdar. Abu Dhabi’s renewable power and sustainable urban development initiative has long invested in such regions as the United Kingdom and western Africa. But the company’s clean power projects have also landed in places as diverse as the Seychelles, Jordan, Egypt, Afghanistan and the South Pacific.

Now, add the tiny country of Armenia, a little larger than Massachusetts but smaller than Maryland, to that list. The landlocked nation of 3 million people, long roiled by conflict with its neighbor, Azerbaijan, along with corruption within its government (though in fairness that has improved in recent years) has selected Masdar to take the lead on a 200-megawatt solar plant located a hour’s drive west of Yerevan (pictured above), the country’s capital and major population center.

According to an emailed news release from Masdar, the total amount invested in this solar installation will reach $174 million. The 500-hectare complex will be the largest clean power investment in Armenia’s history, according to Armenian National Interest Fund (ANIF), which will have a 15 percent ownership in this venture. Long-term plans also call for Masdar to deploy another 200 megawatts of solar power in the country.

Data from IRENA (International Renewable Energy Agency) suggests Armenia’s solar power capacity is largely untapped. That’s not surprising, as much of the country is bathed in sun, which helps to explain the country’s rich legacy of agricultural products. But only about 15 percent of Armenia's land is arable. On that point, the communities of Talin and Dashtadem, where this first Masdar-led solar installation is slated for development, scores plenty of sun but the surrounding land is not a prime candidate for farming.

Like many countries with a sizable global diaspora, Armenia’s economy had long depended on remittances, though the country’s surging GDP pre-pandemic saw that share fall from 20 percent in 2013 to 11 percent in 2019. That largess coming from Armenians living and working abroad has also been met by investments and philanthropic projects in the country within a wide range of industries including renewables. The diaspora’s focus on the motherland, especially in communities with a large Armenian population such as Boston and Fresno, have helped launch new investments since the country scored independence from the former Soviet Union in 1991. Over the years, in fact, Armenia frequently ranked as one of the fastest growing economies on the planet.

On the renewables front, Masdar can help scale up renewables in Armenia – and assist the country in weaning itself away from its primary sources of power, natural gas and nuclear. Currently, 11 percent of the country’s energy supply comes from renewables – and currently that slice of the pie is almost equally divided between biofuels and hydropower.

Image credit: Levon Vardanyan/Unsplash

On both sides of the Atlantic, antsy travelers in this post-pandemic era are booking flights as airlines are reporting a surge in traffic. But the sudden increase of air travelers has come with countless hiccups as a convergence of disengaged employees, bad weather and technological snafus have caused more flights to end up either delayed or canceled. Could train travel become an option?

As anyone who’s done a gap year abroad or a summer in Europe can verify, train travel on the continent is often a singular experience, as countries from Spain to Sweden can brag about high-speed rail systems that would leave any U.S. passenger train far behind in the dust. But that rite of passage, the overnight train journey, had fallen out of favor in Europe as discount airlines offered cheap tickets with the promise to get passengers to their destinations quickly.

For many reasons, however, including frustrations with flight delays, Greta Thunberg’s clarion call for “flight shaming” and consumers’ growing awareness of their carbon footprint have together started to make train travel en vogue once again.

Meanwhile, several time zones to the west, Amtrak is experiencing a bump upward in passengers as the threat of the global pandemic wanes. And America’s train system sees that trend continuing to a point at which the company announced a new fleet that will include up to 83 new trains, which will run up and down Amtrak’s bustling northeastern corridor.

The $7.3 billion investment, for which Amtrak contracted with Siemens Mobility Inc., will result in a new rail experience as trains that have been running for as long as 40 years will be replaced with a more modern version. Assuming all goes to plan, these train cars, will score more comfortable seating, individual power outlets and USB ports, onboard Wi-Fi, improved lighting along with panoramic windows, larger vestibules and revamped in-dining options. On the environmental side, some of the trains running on New York state’s Empire Service will reportedly include a hybrid battery engine, which promises fewer emissions.

While that’s certainly an upgrade for train enthusiasts here in the U.S., the reality of a country in which 48 of its states are spread across four time zones means overnight train travel for many travelers is still too far of a stretch.

But what if Amtrak could promise a more comfortable experience?

A young company in Europe might offer some ideas.

France-based startup Midnight Trains is promising a far more comfortable service than the seat-turned-into-a-bed experience that’s the prevalent choice for most passengers choosing train travel across Europe. The company’s goal is to launch its first line by 2024, with services branching out as far west as Porto, Rome to the south, Berlin and Copenhagen to the northeast and Edinburgh to the north.

“The experience imposed by commercial airlines is full of stress and discomfort,” says the company on its website. “The speed they sell is an illusion and a 1-hour flight is actually 4 hours long from door to door.”

Therein lies the company’s key selling point – along with the fact train travel has much less of an impact on the environment compared to travel by plane.

What Midnight Trains is also promising is more than a place to crash on the rails while reaching the next destination. For travelers, the journeys on these trips will feel like a stay within a hotel, with access to a restaurant and even a bar, with additional services accessible through a smartphone app.

Amtrak does have sleeper cars on its long-haul routes, but reviews are all over the map. The Points Guy mentioned several pros but also expressed disappointment with the food and service. One reviewer on Trip Advisor was overall effusive about the experience, but added “If you don't sleep well bouncing a little, might not be for you.”

Could a “rolling boutique hotel” experience work here in the U.S.? Amtrak does not have to necessarily mimic the plan Midnight Trains has in store for its upcoming service. But between younger generations wanting to try the latest, great trend and older generations seeking to relive their twenty-something experience enjoying train travel across Europe but with a 2020s twist, Amtrak has an opportunity to boost ridership while capitalizing on travelers’ growing disenchantment with the hassles of flying.

Image credits: Andreas Stutz/Unsplash; Midnight Trains/Facebook

Stellantis, the house of automotive brands born earlier this year after a merger between Fiat Chrysler Automobiles and PSA Group (the former Peugeot S.A.), has announced a massive drive toward electrification across its entire portfolio. The target of $35.5 billion for spend over the next several years seeks bold results in new electric vehicle (EV) models, new software development and a transformation in battery technology.

Included in those plans over the next half-decade are bets on dual battery chemistries, as in a high energy-density option as well as one based on nickel cobalt-free technology. The company said it would also roll out solid-state battery technologies starting in 2026. The focus on solid-state batteries will surely raise some eyebrows, as it is a technology generally seen as superior to the conventional lithium-ion batteries currently powering today’s EVs, but one that is also significantly more expensive.

Notwithstanding any debate over which battery technology will surge ahead in the next several years, this decision by Amsterdam-based Stellantis certainly looms as a disruption for many of its brands. Besides the familiar (depending on which side of the pond you are) automotive brands such as Chrysler, Citroën, Dodge, Fiat, Jeep, Peugeot and Ram, Stellantis’ portfolio also boasts the likes of Alfa Romeo (of which a recent Giulia Quadrifoglio is shown above), Lancia and Maserati.

From the point of view of Stellantis, this shift toward EVs is not only about guessing consumer preferences or doing its part to push forward on climate action. The chips that Stellantis is putting on the table are about long-term profitability. The company’s quest for achieving double-digit adjusted operating income margins by mid-decade dovetails with a strategy based on increased electrification, the streamlining of its operations and distribution costs - and a drop in the price of battery technologies would also help the company reap higher margins.

Investors so far don't appear moved by this shift in strategy; shares of the company were priced at just under $19 yesterday after closing at $19.60 on Wednesday. But the race toward electrification will be a marathon or two, not a sprint.

While the company is bullish on new battery technologies, lithium-ion batteries are still part of the company’s plans for the long run; Stellantis said it has signed two memoranda of understanding (MOUs) with two lithium geothermal brine processors in North America and Europe.

Fans of the various brands managed by Stellantis will have to wait to see which models will emerge with an all-electric train, though the rebranding effort is already underway. Dodge’s new mantra, for example, will be “Tear Up the Streets… Not the Planet.” As for Maserati: “The Best in Performance Luxury, Electrified.”

According to CNBC, the upcoming changes at Stellantis will result in 55 newly electrified vehicles by 2025 across the U.S. and Europe, with 40 of them EVs and the other 15 plug-in hybrids. Dodge could see a “muscle car” rivaling the Charger by 2024; Ram will introduce an all-electric pickup that same year; Jeep is targeted to have a range of all-electric SUVs by the end of 2025.

Plans at Stellantis diverge somewhat from its main global competitors. Eschewing plug-in hybrids, GM has said it will eventually offer only all-electric vehicles. Ford is embarking on a similar path, symbolized by its all-electric Mustang Mach-E. Honda has said it would phase out all gasoline-powered vehicles by 2040. And Volkswagen has pledged that its cars in Europe will be all EVs by 2035, with a similar strategy for the U.S. market in the longer term.

Image credit: Łukasz Nieścioruk/Unsplash

Public awareness is finally awakening to the ocean plastic pollution crisis, and consumers are also becoming more aware of their power to push for solutions. That can motivate investors to apply their resources to new, more sustainable fields. One of those fields is cell-free biomanufacturing, and it could lead to new fabrics that help reduce plastic microparticles in the ocean and elsewhere.

Laundry and the ocean plastic microparticle problem

Waste-strewn beaches and sea creatures entangled in plastic debris are the most visible forms of ocean plastic pollution, but waste mismanagement is only part of the crisis. The other part consists of microscopic particles of plastic that collect in ocean habitats and concentrate in food chains.

Some types of ocean microplastic form when larger plastic items disintegrate in water.  At least in theory, that problem could be resolved by improving and enforcing waste management and recycling systems.

Cutting down on plastic packaging, reducing the amount of single-use plastics in circulation, and introducing more biodegradable materials into the market can also help resolve the waste management part of the microplastic problem.

Unfortunately, solutions to the other part of the ocean microplastic problem are much thornier. Millions of people all over the world make a significant contribution to the microparticle problem, simply by doing their weekly laundry. Microparticles of synthetic fiber get knocked loose during the wash cycle. They flow down the drain with rinse water, and then become part of this ongoing ocean plastic problem.

Wastewater treatment plants can collect some of the fibers, but many are too small to be caught. They enter drains that lead to the oceans, either directly or through rivers, and they become part of the global ocean plastic crisis.

How big is the fabric microparticle problem?

The connection between the washing of synthetic clothing and the pollution of the marine environment has been confirmed by researchers since at least 2011, when the American Chemical Society published a widely cited study of microplastic accumulation on shorelines. More recently, the journal Nature published a study that exposed the role of everyday habits in the problem, by measuring the amount of microfibers released by ordinary household washing machines.

“Results showed that microfibers released during washing range from 124 to 308  [milligrams per kilogram] of washed fabric depending from the type of washed garment that corresponds to a number of microfibers ranging from 640,000 to 1,500,000,” the study’s authors reported. They also noted that many of the released microfibers were small enough to escape from wastewater treatment plants.

The washing machine study also took note of extensive literature on the subject.

“A recent review related to microfibers detection in real samples highlighted how microfibers can be found in beaches worldwide, in the water of the Pacific Ocean, the North Sea, the Atlantic Ocean and even in the Artic and in deep sea sediments,” the authors observed. “Textile fibers were also found in fish and shellfish on sale for human consumption, sampled from markets in Makassar, Indonesia, and from California, USA.”

No easy solution to the laundry problem

The laundry problem may seem intractable, but solutions are on the horizon.

Upgrading municipal wastewater treatment systems is one effective way to reduce microfiber pollution. However, such work is time consuming and expensive. Though it can make a significant difference for older treatment plants that are overdue for an upgrade, it may not completely eliminate microfiber discharges.

Another avenue is the emergence of “waterless” laundry machines that deploy polymer beads to remove dirt and stains. The technology only requires a cup-sized amount of water and a small amount of detergent. Because so little water is involved, the technology makes it possible to capture microparticles at the source, before they wash down the drain. Those same particles could then be caught in a microfilter and disposed with the regular household solid waste.

The startup Xeros has been working on waterless laundry technology for several years, and the company recently introduced a microfiber trap for commercial laundries. Unfortunately, a similar solution for household laundry machines may be years away.

Another pathway would be to reduce the use of petrochemical fibers in clothing and household goods, and to rely more on natural fibers that can biodegrade safely. That solution is already at hand, but a rapid transition to all-natural fibers will raise new conflicts in the already stressed area of land, water, and energy in agriculture.

The high tech, cell-free biomanufacturing solution

Encouraging or requiring the reuse and recycling of natural fabrics would help alleviate some of the stress on agriculture. An additional pathway would be to use new cell-free biomanufacturing methods to “grow” bio-based building blocks for synthetic fibers that can degrade harmlessly in water.

Cell-free systems are not a new phenomenon. They emerged in the 1950s as a powerful research tool for conducting precise, efficient investigations without the distraction of cultivating entire cells.

A decade later, cell-free systems enabled researchers to decipher the genetic code in the 1960s. They are still best known for their application in medical and biological fields, and they have also been applied to energy and agriculture.

As applied to fabrics, such cell-free systems could provide a more sustainable way to replace synthetic fibers with bio-based ones. The challenge is to scale up and reduce costs.

One company that seems to have figured it out is the startup FabricNano.

“We have created a novel DNA-based flow reactor to produce biochemicals by engineering enzymes with the ability to bind directly to DNA,” the company explains. “The use of DNA as a scaffold allows high spatial precision, while the ability of enzymes to attach anywhere along a string of DNA provides deep flexibility.”

Fortune recently profiled the company and described its biomanufacturing process as harnessing “the chemical laboratories that exist inside the cells of living organisms, but it does so without the need to actually use living things.”

The process still requires energy input in the form of natural sugars. However, since there is no need to tailor the input for living cells, FabricNano can deploy impure waste sugars. That provides the company with an additional layer of sustainability.

The Fortune profile specifically mentions waste glycerin from biodiesel production. Although pure glycerin has many commercial uses, biodiesel waste glycerin is impure and unsuitable for most applications. As a result, there has been an ongoing glut of waste glycerin in the global supply chain. The oversupply is all but certain to persist as demand for biodiesel rises.

Waste glycerin provides FabricNano with a practically limitless supply of inexpensive feedstock and a firm foothold in the circular economy, too.

As Fortune notes, FabricNano has some  powerful backers supporting it financially, including actress and gender equality activist Emma Watson as well as Twitter co-founder Biz Stone and former Bayer CEO Alexander Moscho.

FabricNano is also a welcome addition to the growing field of nanomaterial manufacturing. In recent years, there has been considerable activity in the areas of specialized fabric coatings and other applications, some of which may involve toxic materials. By relying on a bio-based, biodegradable platform, FabricNano could help steer the entire field in a more sustainable direction – and help tackle the mounting ocean plastic crisis.

Image credit: Cristian Palmer/Unsplash

While the U.S. has about 12.3 million female-owned businesses that generate approximately $1.8 trillion in revenue annually, when it comes to business proposals getting seed money, the major share of the funds still go to men. Meanwhile, women entrepreneurs often find themselves left in the cold and find themselves having to look for alternative sources of funding.

To help bridge that divide, as well as assist other groups of all ages, life stages, ethnicities and backgrounds, according to Peanut, it created StartHER, a microfund to help startups. Peanut, which also operates a social networking app for women, is targeting entrepreneurs who lack family and friends who can pull out their checkbooks.

“The assumption that founders should have networks able to invest in their businesses creates an unfair starting line for most groups. If we don’t remove barriers to that initial funding by providing access to capital, how can we ever hope to see a changing founder profile further through the fundraising funnel?” said Peanut CEO and investment committee member Michelle Kennedy, in a prepared statement. “Peanut’s StartHER fund opens the door to founders looking for that early funding.”

StartHER is launching with $300,000 and expects to award between three and four investments this year. Peanut will not have any equity in the businesses in which it invests, according to the company. Among the goals of StartHER is to find “pre-seed” businesses striving for a positive impacts on society, healthcare or the environment. Individual grants will range between $25,000 and $50,000. 

“As a member of the Female Founders Fund, I’m excited to be a part of StartHER’s investment committee to help these entrepreneurs, who have not been adequately recognized, grow their networks in the venture capital community,” noted Anu Duggal, founding partner of the fund, in a statement.

Currently, women entrepreneurs receive only about 7 percent of venture capital funding for business ideas, despite the fact that as a whole, women entrepreneurs are more successful than men, as discussed in the book Female Entrepreneurs: the Secrets of Their Success. Approximately 17 percent of venture capital funding went to companies with at least one founder who is female, according to Crunchbase. When it comes to all-women businesses, though, only 2 percent were awarded funding. For women of color, the statistics are even worse.

The COVID-19 pandemic also hit women entrepreneurs on multiple fronts. According to Crunchbase data, between 2019 and 2020, there was a 27 percent decrease worldwide in funding for businesses started by women. When schools and childcare centers closed and education went virtual starting in 2019, many women had to put business plans - and their businesses - on hold to take care of their families. The elimination of in-person networking opportunities also put women at a disadvantage.

The reasons women entrepreneurs are awarded smaller investment loans and grants than men vary; often they ask for less money, because they are more cautious when it comes to estimating the value of their businesses. In some cases, women’s proposals for companies are less conventional, making traditional investors wary. “Women entrepreneurs often don’t reflect the image financial backers have for this group of business leaders,” according to the aforementioned book. “...They (women) just don’t conform to the norm of the young hoodied-male geek.” 

Not to mention that most of those in charge of the dollars at venture capital firms are male; only 13 percent of decision-makers are women. Some women also reported experiencing sexism during the application process or said interviewers focused more on their personal lives than work plans.

But with the post-COVID economy, more women are poised to launch new businesses. Companies owned by women are poised to stimulate the economy and can – if only investors would take this reality into consideration.

The StartHER fund is currently accepting applications; the committee is scheduled to meet every six months to review proposals. Besides seed money, fund recipients also will receive support from committee members and their networks. 

Criteria for StartHER applications also will evolve. “Moving forward, we’ll be considering other factors such as deal flow to help inform how we invest and the companies we choose to invest in,” Kennedy explained. “We’re heavily focused on making the right investments that will have the most impact versus simply making returns.”

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Critical race theory is a scholarly discipline formerly confined to the halls of law schools. Now suddenly, white supremacists and their allies have ginned up fears over its application to grade school children. As a group, the opponents are unable to explain how they made the leap from the rarified air of law school lecture halls to K-12 classrooms, but one thing is sure: Business leaders should take the time to understand what critical race theory really is, and ad agencies provide one good example of why.

Critical race theory becomes the latest target in the culture wars

Legal scholars coined the term “critical race theory” (CRT) in the late 1970s. It is not a single subject, or even a group of programs. It is a discipline. It refers to the study of laws and other government-sanctioned systems that may not appear race-based in abstract. However, in combination with other elements, these systems can cement and perpetuate the race-based suppression that cascades throughout American history from its earliest beginnings on up to the present day.

For political purposes, Republican office holders and their allies are deploying critical race theory as the new “red scare,” portraying it as a form of racial indoctrination meant to shame and blame white people. Former President Trump himself sparked the movement while campaigning for a second term last fall, when his administration threw critical race theory into a list of forbidden diversity training topics.

However, that is clearly a false representation.

“CRT is not a diversity and inclusion ‘training’ but a practice of interrogating the role of race and racism in society that emerged in the legal academy and spread to other fields of scholarship,” the American Bar Association explains, adding that “It cannot be confined to a static and narrow definition but is considered to be an evolving and malleable practice.”

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In the academic context, critical race theory provides a platform for scholars to critique the outcomes of legal systems and other social constructs objectively, without becoming entangled in the subjective weeds of whether or not individual policy makers are racists.

As a complement to diversity training programs in the corporate world, the discipline of critical race theory could help business leaders analyze their hiring practices objectively and lower the temperature of conversations about race and exclusion. That would be especially helpful in breakout sessions, where close quarters can easily enable emotions to run high.

Ad agencies drop the ball on Three’s a Crowd diversity pledges

Ad agencies provide an especially good example of the need for an understanding of critical race theory in business, partly because the field is notoriously behind the curve on diversity hiring. The exercise in disciplined discussion could help business leaders analyze generations of exclusionary practices from a solutions-based perspective.

Ad agencies also reveal that the work of diversity hiring needs to begin far ahead of the first job interview.

The advocacy organization Three’s a Crowd (TAC) made an important step in that direction back in 2018, when it embarked on a mission to help Black creative professionals embrace Blackness in advertising and other fields including marketing, production, fine arts and entrepreneurship:

“We rise on the shoulders of a rich history of Black thinkers and leaders who advocated self-reliance and black agency. From the Harlem Renaissance to BET, from Sojourner Truth to Spike Lee, and from Marcus Garvey to Dr. Dre, we follow the example of those who never asked for a seat at the table, all the better to build their own.”

As part of that endeavor, last summer Three’s A Crowd asked ad agencies to commit to hiring more Black leaders. The organization marked 13 percent by 2023 as the hiring goal, to match the percentage of the Black population in America. As of last summer, Blacks only accounted for 8 percent of employees at ad agencies, and Three’s a Crowd estimated that Blacks hold only 2 percent of leadership positions in ad agencies.

The campaign launched in the midst of the reenergized Black Lives Matter movement, and the response was encouraging. Three’s a Crowd received 172 pledges from 71 ad agencies for its “In for 13” campaign.

The campaign involved far more activity than simply signing a pledge. Three’s a Crowd developed a full program in consultation with diversity experts. It was designed to complement additional work that would need to be undertaken by those signing the pledge.

Unfortunately, it appears that “additional work” was far too big of an ask for some firms.

Last week, AdWeek reporter Larissa Faw noted that 49 agencies have dropped their diversity commitment to Three’s a Crowd. Currently, the roster of those remaining includes just 20 agencies, two production houses and two holding companies.

Talking is not the same as walking

So, what went wrong?

In part, the problem is a familiar one that cuts across all sorts of businesses: the pledge signers promised more than they delivered.

Over-promising on corporate pledges is not unusual in any business sector, but it can be especially acute in the ad agency field, where the practice of self-examination, accountability and transparency has not yet taken hold.

“TAC from the beginning made it clear that joining the pledge would include markers of accountability and transparency that the industry doesn’t usually demand,” Faw explained.

In addition, many of those signing the Three’s a Crowd Pledge were mid-level executives. When it came time to implement the program, upper management balked.

Three’s A Crowd core member Tahirah Edwards-Byfield noted that “promising to increase Black leadership by 2023 is one thing. Committing to doing it — and the structure changes it will take for many companies to do so effectively — is another thing entirely.”

“Creating action around anti-racist practices felt like a lot of work that many agencies either weren’t equipped for or interested in,” Three’s a Crowd co-founder Reonna Johnson added.

On a more optimistic note, Faw observes that some of those dropping out have incorporated some elements of the program. She also indicates that Three’s a Crowd accomplished the important work of exposing a key missing link in diversity hiring: namely, the need for an overhaul of internal corporate culture, not simply the application of new training programs.

Why critical race theory should be taught in schools

The notion of overhauling corporate culture from the inside out can easily be fraught with emotion. In that regard, the discipline of critical race theory can help business leaders promote constructive self-examination without falling into the blame-and-shame trap.

The especially compelling need of an overhaul in the ad industry was laid out last year in an op-ed published by NBC News. It was written by Christopher Boulton, associate professor of communication at the University of Tampa, who has studied diversity hiring in the ad industry.

“Advertising’s unique ability to persuade by creating the appearance of change through rhetoric, symbols and events has helped corporations and existing power structures conceal and protect white gains and Black losses behind the scenes for generations,” Boulton wrote, launching into a fiery critique of generations-old exclusionary hiring practices.

“When it comes to feigning change while continuing to marginalize Black lives and maintain white power, advertising has a long record as a repeat offender. And nothing demonstrates that more clearly than the ongoing, striking lack of diversity in the advertising industry itself,” he added.

According to Boulton, the root of the problem is an over-reliance on must-hire lists that foster nepotism and friend referrals, amplified and supported by a lack of objective hiring standards. As the Three’s a Crowd experience demonstrates, the practice is supported by a lack of transparency and clear hiring standards.

Nepotism and friend referrals are not uncommon in any entity that hires, whether they are in business, government or nonprofit. However, Boulton excoriates the ad industry in particular for fostering an environment that pushes Black employees out of the mentoring network and leaves them vulnerable to “white backlash.”

Specifically, Boulton interviewed interns and found that “over half of the white ‘must-hires’ in my study opposed affirmative action, even though they got their own spots through just such a program; these white hires nevertheless complained that Black interns got in ‘only because’ of their race.”

That attitude can permeate corporate culture and lead to significant brand reputation damage, as coincidentally illustrated by ESPN earlier this week.

Clearly, it would help ad agencies and other businesses if interns and employees were aware that their must-hire status is nothing more or less than a generations-old form of affirmative action. Getting a good job through family, friends or school connections is nothing to be ashamed of. It happens all the time. The real shame lies in denying the structures that create that opportunity and denying the structures that keep others out of the loop.

Business leaders who are serious about diversity hiring could make some real progress by exposing employees to the discipline of critical race theory in workshops and professional development programs. They could also help cut off racism at the source by advocating for critical race theory as a standard practice in college-level courses and business schools.

For that matter, educators are beginning to fight back against new laws prohibiting the use of critical race theory in public schools. Last month the National Education Association passed a resolution calling for “racial honesty in education including but not limited to critical race theory.”

Considering that an organized effort is well under way to pass laws seeking to restrict critical race theory, the NEA has its work cut out for it. Support from corporate leaders would go a long way towards ensuring that the next generation of interns is well-informed and well-equipped to foster economic growth and opportunity in a more dynamic, diverse, and equitable society.

Image credit: Bruce Mars/Unsplash

As reports keep surfacing about more and more employees suffering from burnout, responses from business leaders, if any, are all over the map.

Meanwhile, a four-year trial of the four-day work week in Iceland led to 86 percent of that country’s working population to qualify for a shorter work week, from 40 hours to 35 hours per week, and for the same rate of pay. The results have included workers reporting that they felt less stress; spending more time with their families; and either enjoying more time pursing their personal interests or finishing those pesky tasks such as household chores.

Some may question whether a relatively isolated country home to only 360,000 people can offer lessons to larger countries, massive multinational corporations or even startups.

Nevertheless, it appears more business leaders realize they have a burnout problem on their hands and preaching the virtues of “self-care” or “well-being” are not going to cut it. For example, the CEO of the software company Okta reportedly emailed all 3,500 of the company’s employees, urging them to take time off and even asked them to share their vacation plans with him. The company allows for unlimited vacation time, a policy advocates say could help motivate employees to both work hard and stay loyal to their companies.

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Furthermore, it is no secret that the work culture in the U.S. is one that leads to many employees feeling “guilty” if they dare take some time away from the office. To that end, more companies are taking a different twist on Okta’s approach, as in offering cash to encourage their employees to get away.

But as anyone who has tried to rent a car or had to fly on a plane this summer can verify, those promises to take time off can hit a brick wall. Until the airlines can iron out all those logistical problems that are making summer plans more nightmare than nirvana (never mind the anti-masker incidents), hitting the road or airspace isn’t necessarily the most palatable option for many workers. The rental car shortage, volatile labor market and summer heat across the U.S. are among the factors leading many citizens to kick the vacation can down the road for a while.

Enter the four-day work week.

One company testing out the four-day work week is Kickstarter, the popular crowdsourcing platform. The New York-based company says it will test out the schedule next year. Employees will receive the same salary, only work fewer hours. According to a recent report, as the logic goes, being in the virtual or physical office will lend to fewer interruptions at work while employees can stay more focused while they are on the clock.

According to the nonprofit 4 Day Week Global, businesses that shift to a four-day work week could score many benefits: happier and less stressed employees; an advantage in finding and retaining talent; and an acknowledgment of 85 percent of working adults who have said, in at least one survey, they favor a four-day work week.

Let’s face it: technology such as instant messaging, email, human resources software and even decades-old developments such as word processing and spreadsheets does not necessarily mean our jobs are easier. The reality today is that people are expected to do even more. And one disruptive global pandemic later, workers have made it clear that they can be trusted, and that they are both efficient, creative and can adapt to just about any situation. It’s about time business leaders respond in kind.

Image credit: Elisa Ventur/Unsplash

If there are any lingering doubts left regarding the reliability of electric vehicles (EVs), a new electric fire truck from the firm Rosenbauer should lay them to rest once and for all. After all, breakdowns and other mishaps can have life-or-death consequences in emergency services. The new fire truck is designed to demonstrate that electrification meets, and beats, diesel engines on performance and on other measures, too.

Volvo and Rosenbauer team up for a revolutionary electric fire truck

Rosenbauer selected Volvo Penta to provide the drivelines for its new electric fire truck, dubbed Revolutionary Technology.

Three of trucks were delivered last year to fire departments in Berlin, Amsterdam and Dubai for on-the-road customer testing, and Rosenbauer has modified the design to introduce a version in North America, too. Last week Volvo announced that it has also begun production-scale manufacturing of the truck’s electric drive system (as shown below).

Rather than simply replacing a diesel engine with a battery on a conventional fire truck, Volvo and Rosenbauer collaborated on a new electric fire truck design that takes full advantage of the flexibility and space-saving features of all-electric technology.

“By walking away from conventional commercial vehicle concepts and developing an electric solution for the truck’s driveline, Volvo Penta and its customer Rosenbauer have introduced a completely new vehicle architecture which is set to transform the fire service industry,” Volvo explained last year. “With its electric driveline, the fire truck boasts excellent ergonomics, functionality, and safety, as well as high loading volumes, compact dimensions and one-of-a-kind agility.”

To be clear, Volvo and Penta are not taking any chances. The new fire truck is equipped with a backup diesel engine in case of long deployment. However, Volvo anticipates that the battery system will provide ample power for all but the most extreme use cases.

The many benefits of an electric fire truck and other trucks, too

The elimination of vehicle emissions is especially important in the emergency services field, where fire trucks and other vehicles often remain parked in idle mode for long stretches of time.

Diesel engines and diesel generators add considerable noise and air pollution to situations that are already stressful and dangerous. Electrification provides a significant health and safety advantage for both first responders and victims, as well as bystanders and local residents.

By demonstrating the peak capabilities of EV technology, the new electric fire truck could also help accelerate the electrification of other types of community service vehicles that could have an impact on local neighborhoods with diesel pollution.

That movement is already beginning to take hold, though it could use a big push. Utilities are slowly beginning to electrify their service fleets, as are delivery fleets including Amazon, UPS and FedEx. The U.S. Postal Service is another fleet owner that comes to mind as a ripe candidate for electrification.

The U.S. military is another high-volume fleet owner with an interest in fleet electrification. A recent analysis concluded that EV technology is not yet capable of powering an entire combat deployment, but electric vehicles and renewable energy are becoming key elements in the Defense Department’s efforts to improve community health and safety in and around its facilities.

Other types of neighborhood trucks could also improve community relations by cutting noise and air pollution from diesel engines and generators, including ice cream trucks and food trucks.

Who will pay for all this?

Fleet electrification has been off to a slow start, mainly because the up-front cost of an electric vehicle is still relatively high. However, EV technology provides long term savings in fuel and maintenance, offering solid bottom-line footing that can accelerate the transition out of diesel.

In addition, analysts anticipate that the up-front cost of an electric vehicle will meet, and then beat, its conventional counterpart within the next few years, as the cost of EV batteries continues to decline.

G7 member nations passed up a chance to promote electrification in the 1970’s, but at last month’s meeting they included electric vehicles among a list of agreed-upon measures to slash carbon emissions. The agreement was panned as too little, too late by some critics, but it will help promote government policies that support electric vehicle manufacturing.

If the power of public policy does accelerate the electrification trend, in a few short years the neighborhood children will not have to breathe in diesel fumes while waiting in line for the ice cream truck, though you may still have to tolerate the jingle blaring from its loudspeakers.

Image credits: Connor Betts/Unsplash; Volvo Group