GLOBAL IMPACT VALUE EQUITY STRATEGY - Impact Report, Jan 2021 - Lyrical Asset Management
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GLOBAL IMPACT VALUE EQUITY STRATEGY
GIVES
Impact Report, Jan 2021
GIVES Mission Statement
The world faces difficult problems, and we believe for-profit organizations
should be a part of the solutions. As public equity investors, we aim to drive
companies to align their profit-seeking with positive societal impact.
In our Global Impact Value Equity Strategy (“GIVES”), we seek to invest capital
in companies that are making a positive societal impact, thereby increasing
their valuations and lowering their cost of capital. We will also work with these
companies to measure and report their initiatives of positive change, helping
them gain the recognition they deserve, which should also drive stock price
appreciation. Furthermore, as other management teams and shareholders see
rewards for positive impact, they should become incentivized to make a
difference of their own.
For us to succeed, we believe that we must, first and foremost, generate good
financial returns. This is why our approach combines the financial returns from
value investing with the societal returns from impact investing.
Our hope is to create a virtuous cycle. If we can outperform broad indices
while owning world-changing businesses, we believe we can turn Impact
Investing from a niche into a mainstream investment approach. As more funds
flow into impact investing, more companies may reshape their approach to
consider positive change alongside financial returns. This in turn could cause
the valuations of those companies to rise, and drive more investors into Impact
Investing.
GIVES was founded to drive this virtuous cycle forward.
Value, Quality, Analyzability, and Impact
Value:
As with all investing at Lyrical, our investment process begins with Value. We only look to buy businesses
that trade at a significant discount to our estimate of their intrinsic value. The GIVES portfolio today
trades for 13.4x forward earnings, a steep discount to the MSCI World at 20.9x.
Value is the fuel our returns; it is the reason we expect to outperform the MSCI World Index by 500-
1,000 basis points annually. Looking back to 2004, the cheapest quintile of stocks as measured by our 5-
year P/E delivered an annualized return 3.5 percentage points above the MSCI world. We expect to do
significantly better than that because we only invest in businesses with superior fundamentals.
Quality & Analyzability:
We don’t just buy cheap stocks; we buy high-quality, simple to understand, attractively valued stocks. In
our hunting ground, most stocks are cheap for a reason. For that reason, we add two additional
investment criteria to help sort the gems from the junk. We buy Quality businesses, producing at least
10% returns on tangible capital. We also buy Analyzable businesses or those we can reasonably model
on a long-term basis. Buying good and understandable businesses leads to stronger earnings growth, at
more predictable rates. As seen here, the companies in GIVES grew their EPS at an 8.2% rate from 2007-
2021E, compared with the MSCI World at only 2.2%.
Forward P/E Ratio Indexed EPS Growth
25x 350
LAM GIVES:
20.9x +8.2%
300
20x
250
15x
13.4x 200
10.5x
150 MSCI World:
10x
+2.2%
100
5x
Cheapest
50
Quintile:
-2.6%
0x 0
LAM GIVES Cheapest Quintile MSCI World
2007 A
2008 A
2009 A
2010 A
2011 A
2012 A
2013 A
2014 A
2015 A
2016 A
2017 A
2018 A
2019 A
2020 E
2021 E
2
Value, Quality, Analyzability, and Impact
Impact:
From this small universe of cheap, good, and simple businesses, we invest only in those companies that
are materially improving the world with their core business. Each company must possess four criteria to
qualify as an Impact business: Material, Measurable, Intentional, and Sustainable. First, the company’s
impact must be Material. This means at least 50% of the company’s revenue must be directly tied to a
UN Sustainable Development Goal. We view the UN’s 17 Sustainable Development Goals as major
problems the world needs to solve, and each of our companies must be solving at least one of these
problems with at least half their business. Second, this impact must be Measurable; we must be able to
quantify the positive change the company is making. Third, the company must be Intentional about its
impact. Positive change must be deeply rooted in the company’s culture and business. Finally, the
company itself must be Sustainable, which means that the good things a company is doing cannot be
offset by bad things. Every company has negative externalities, and we analyze them to make sure they
are relatively small.
Impact Investment Pillars
• Material - At least 50% of a company’s revenue
must be directly tied to at least one Sustainable
Materially Development Goal
Generate Improve the
Strong World with • Measurable - Impact must be quantifiable
Financial Measurable
Social and/or • Intentional - Core business and senior
Returns
Environmental management must be deeply rooted in
Returns sustainability efforts
• Sustainable - Negative externalities from a
company’s operations cannot outweigh its positive
impact
• Lyrical’s “VQA” framework produces an unmatched combination of deep value and quality/growth
• GIVES supports impact by investing in companies working to solve major global problems
• Lyrical’s portfolios are differentiated, unlike other managers or any index (active share >95%)
• Lyrical’s portfolios feature long-term holdings and low turnover
• Lyrical is actively engaged on ESG, a signatory of UNPRI, and a participant of the UN Global Compact
• We believe Lyrical is timely, as the valuation spread between Lyrical’s portfolio and the market is
near a historical high
3
Portfolio Company Highlights
Centene Crown Holdings Flex
Largest Medicaid managed care #2 Global producer of food and
company in the U.S.. Lower beverage aluminum cans, which #1 global producer of solar
healthcare costs by 8-15% for can be recycled indefinitely. trackers, which improve
low-income people, compared Recycling content per can is production per solar panel by
to government run fee-for- 73%, compared to 6% for plastic 15-30%.
service care. and 23% for glass.
Grupo Catalana Occidente Hanesbrands NXP Semiconductors
#2 provider of trade credit
World’s largest basic apparel #1 supplier of radar chips for
insurance, which benefits
maker. Leader in sourcing driver assistance features,
smaller businesses. A 10%
sustainable cotton, with the known as ADAS, which could
increase in credit insurance
goal of using 100% sustainable prevent 40% of all auto crashes
availability improves global
cotton by 2025. and 29% of deaths in crashes.
trade flows by 1%.
Quanta Services Redbubble Whirlpool
One of the world’s largest Leading home appliance
Leading specialty infrastructure
online marketplaces for user- producer. Modern appliances
solutions provider that operates
submitted artwork. Generated reduce resource consumption
the Northwest Lineman College.
$67 million of payments for by 40-50% in both developed
Trained 12,800 students in
independent artists in the year and developing markets where
2019.
ending June 2020. WHR generates 25% of sales.
4
Measuring Impact
% of Portfolio Holdings Impacting United Nation’s Sustainable Development Goals (SDGs)
80%
70%
60%
50%
40%
30%
20%
10%
0%
5
Measuring Impact
Ashtead Group
Plc
Atos SE
Centene
Concentrix
Crown Holdings,
Inc.
Elis SA
Flex Ltd.
Grupo Catalana
Occidente S.A.
Hanesbrands Inc.
HCA Healthcare
Inc.
Hitachi, Ltd.
ISS A/S
Kinden
Corporation
Konecranes Oyj
Kyudenko
Corporation
NXP
Semiconductors
NV
Quanta Services,
Inc.
RedBubble
Software AG
SPIE SA
Whirlpool
Corporation
6
Table of Contents
I. Ashtead Group plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
II. Atos SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
III. Centene Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
IV. Concentrix Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
V. Crown Holdings, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
VI. Elis SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
VII. Flex Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
VIII. Grupo Catalana Occidente S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
IX. Hanesbrands Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
X. HCA Healthcare Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
XI. Hitachi, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
XII. ISS A/S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
XIII. Kinden and Kyudenko Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
XIV. Konecranes Oyj . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
XV. NXP Semiconductors NV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
XVI. Quanta Services, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
XVII. Redbubble Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
XVIII. Software AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
XIX. SPIE SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
XX. Whirlpool Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
XXI. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
7
Ashtead Group plc
Company Description:
Ashtead Group provides equipment rental services in the
U.S., U.K. and Canada under the names Sunbelt Rentals,
A-Plant, and Sunbelt Canada, respectively. The company
offers a full range of industrial equipment across a wide
variety of applications such as construction,
infrastructure, facilities maintenance, special events, and
emergency response.
Environmental or Social Problem:
Most industrial equipment—from scissor lifts to power generators—leaves behind a significant negative
carbon footprint. First, the manufacturing of this equipment consumes natural resources and produces
carbon emissions. Second, much industrial equipment is not environmentally-friendly, generating too
many emissions during use. Finally, at the end of the equipment’s life it is disposed, which requires even
more resources. Exacerbating these negative impacts, the world makes too much industrial equipment.
Privately-owned equipment is typically underutilized, which means more equipment must be made than
should be necessary. In the U.S., only about half of equipment is rented, leaving a long runway for
improved equipment utilization.
Ashtead’s Impact:
Ashtead is a sharing economy business. By renting industrial equipment, Ashtead promotes increased
utilization of a ready-made product, rather than construction of a new product. Rented equipment
enjoys utilization rates of 75-85%, far above owned equipment.1 This higher utilization means less new
equipment is needed, which results in lower emissions. According to Aalto University, about 30% of the
emissions from the lifecycle of a typical boom lift come from its production.2 According to estimates by
the European Rental Association (ERA), efficient lifetime use lowers the total carbon footprint of
equipment by 30% to 50% or more, depending on specific user practice.3 The transition to renting is a
critical step towards achieving both sustainable industrialization and sustainable production patterns.
8
Ashtead Group plc
Beyond promoting a sharing economy, Ashtead helps reduce equipment emissions during their use by
providing the very latest low and even zero carbon equipment available. As one of the largest purchasers
of equipment in the world, Ashtead considers its role to help push green technologies with OEM’s and
customers. In fact, Ashtead works with equipment manufacturers to help develop and test low carbon
equipment. With a young, 39-month-old fleet, Ashtead has and continues to invest in the most innovative
equipment, such as electric machinery, hybrid generators and eco-lighting.4 Last year, for example,
Ashtead invested in zero emission excavators from one of their manufacturers, JCB; this was the
manufacturer’s largest order to date of new electric machines.5
Lyrical’s Four Pillars of Impact
100% of Ashtead Group’s business is from renting industrial equipment, a business model that
Material directly lowers the carbon footprint of equipment in the range of 30% and sometimes over
50%.
As one of the largest companies in the industrial equipment rental market, we measure and
monitor Ashtead’s impact by tracking the growth rate of the market as well as the share of
Measurable
rented versus owned equipment in each major geography. We also track Ashtead’s emissions
intensity ratio (tCO2e/FTE).
Intentionality is at the core of Ashtead’s business. They consider it their mission to get more
environmentally friendly equipment out into the field by working with both OEM’s and
Intentional customers. Ashtead is a thought leader in the industry, for example recently hosting the UK
Hydrogen Energy Summit to help spread the message on hydrogen as a sustainable fuel
replacement for diesel.
Ashtead is considered an ESG leader by Sustainaltyics, and our internal research has
confirmed that negative externalities do not outweigh positive impact.
Sustainable
• CDP (D), Sustainalytics Low Risk (19.4), MSCI (AA)
9Atos SE
Company Description:
Based outside of Paris, Atos is a technology services partner to
large corporations. The company provides end-to-end offerings
including data center and cloud management, application design
and maintenance, cybersecurity, and high-end computing for Big
Data. Atos generates 73% of its sales in Europe, where it is the #1
provider. Atos is a global leader in environmental sustainability,
with the most aggressive decarbonization goals in its industry and
a consulting group to help customers reduce emissions. Every
contract above €20 million is priced with an emissions reduction
goal that Atos must achieve for its clients.
Environmental or Social Problem:
Atos’ core business attacks three key global problems: growing IT emissions, increasing cybersecurity
breaches, and decarbonization challenges. These problems are outlined below:
• IT Emissions: the rapid growth in data consumption, globally, results in a need for more and more
data centers and infrastructure. The IT sector already accounts for 4% of total global emissions
and this is expected to rise to 8% in 10 years.1
• Cybersecurity breaches: as we shift more critical data online and to the cloud, we are creating
more risk around cyber attacks, which cost enterprises an annual $600 billion in lost value. 57% of
companies worldwide reported an IT breach of some kind from 2017 to 2019.2
• Decarbonization challenges: While companies are more eager than ever to reduce emissions,
they also typically have limited internal ability to implement emissions reduction plans.
10Atos SE
Atos SE’s Impact:
• IT Emissions: Atos digital solutions can reduce customer carbon emissions by 20% or more, through
programs including: cloud migration, IOT initiatives and edge computing, more efficient data center
utilization, energy and consumption analytics, recycling protocols, hardware upgrades, and more.3 Just
shifting a customer to the cloud from on-premise data management can reduce total emissions by 28%.
• Cybersecurity breaches: Atos is the #1 Cybersecurity services company in Europe and #3 in the world.
Atos helps to protect what is often their customer’s most valued assets: their IP and data. The company
also helps to safeguard the privacy of our personal data around the world. Beyond simply being
defensive, Atos’s cybersecurity business is also an enabler of global commerce as it allows companies
and people to feel safer transmitting and storing data. Security concerns, for example, are a key
roadblock for firms to transition data away from on-premise storage. 65% of organizations globally
report a shortage of staff to help with cybersecurity, indicating that Atos fills a critical need.4
• Decarbonization challenges: With its EcoACT business, Atos has a consulting and analytics division that
focuses purely on helping its customers attack their own ESG initiatives. While this is small relative to
the size of Atos, they are an early leader in the space and are growing rapidly. 77% of Atos customers
have set their own internal decarbonization efforts, and Atos is uniquely positioned to help them
achieve their goals as a data and analytics partner with a long history of successful decarbonation and
circular economy initiatives.5
Lyrical’s Four Pillars of Impact
About 45% of Atos revenue today comes from decarbonization efforts, with a target to
Material increase this to 65% over the medium term. Additionally, 11% of revenue comes from
cybersecurity. In total, 56% of Atos revenues today qualify as making a material global impact.
We are tracking Atos’ goal to increase its decarbonization revenues from 45% today to 65% by
2023. We also continue to monitor Atos’s success in cybersecurity and their internal
Measurable
emissions. Atos manages some of the world’s most efficient data centers, but they plan to
continue improving, reducing to net-zero emissions by 2035.
Atos’ management team and culture are deeply committed to its efforts to improve the world.
Their published raison d'être is to help the world develop in a sustainable way with a safe and
Intentional secure information space. The company has an internal price of carbon (€80/tonne) that it
uses in all decisions. Managers are incentivized on P&L’s, inclusive of their environmental
impact. As an early adopter of sustainable practices, Atos has been carbon neutral since 2018.
Atos is considered an ESG leader by Sustainaltyics, and our internal research has confirmed
that negative externalities do not outweigh the company’s positive impact.
Sustainable
• CDP (A), Sustainalytics Low Risk (14.2), MSCI (AAA)
11Centene Corporation
Company Description:
Centene is a leader in government-sponsored health insurance.
The company is the largest provider of Managed Medicaid,
helping states manage more than twelve million patient lives.
Centene is also a key player in Medicare Advantage, where it
manages over four million lives, and on the Health Insurance
Marketplace, where it covers over two million. Centene’s core
competency is managing lower-income populations. Centene
possesses a durable competitive advantage, driven by its strong
provider networks, highly effective support services, and a
proven ability to apply data and experience to improve health
outcomes and lower costs.
Environmental or Social Problem:
People with lower-incomes or disabilities depend on the government
for quality health care. Their coverage is at risk because of the rising
cost of health care services and increasingly stressed state budgets.
The Medicaid population includes a large portion of medically
complex, high-need beneficiaries, including nearly 12 million elderly
and disabled
individuals.1 Health expenditures for persons with disabilities were $19,750 in 2016 per person per
year or more than twice the national average.2,3 Because of this, approximately 50% of Medicaid
program costs come from just 5% of Medicaid beneficiaries.4 For these people, Medicaid is a critical
program because they do not have access to private health insurance or cannot afford additional
needs like nursing home care.
Medicaid accounted for 29% of all state spending in 2018, up from 21% a decade earlier.5 This has
caused state budgets to come under pressure, which has been exacerbated by the COVID-19
pandemic. As such, it is critical for states to lower the costs of Medicaid, but without sacrificing the
quality of care for the people who need it most.
Centene’s Impact:
Centene’s core business improves health outcomes while also materially unburdening state budgets.
Centene effectively improves health by better coordinating services within a fragmented health care
delivery system and by focusing on the social determinants of health. Improving health outcomes is as
much about addressing the social determinants of poor health as it is about providing high-quality
medical care.
12Centene Corporation
For example, Centene will work closely with its members to determine if a person has adequate housing and
work with them to address it, if not. Centene’s approach lowers costs, while also providing great care.
According to a study by Wakely Consulting Group, Medicaid managed care offers states significant financial
savings, by gradually lowering costs over traditional fee-for-service by 8-15% within nine years.6 The
following are two examples of Centene’s achievements in improving well-being and reducing costs.
• Centene’s Arizona health plan implemented a program to connect members to stable housing,
leveraging the Homeless Management Information System to locally coordinate needs. The health plan
also funded an engagement specialist, working at a social services organization, to directly reach out to
members, connecting them with employment, housing and medical screening through a Homeless
Work Program. After six months, the number of members who were homeless decreased by over 24%
and the overall cost of health care for this group decreased by 13%.7
• Centene provides more than simple healthcare, offering long-term care services such as assisted living
and nursing home care. Centene’s approach to coordinating care for these needs, improves its
member’s quality of life, while reducing costs. Centene plans have supported more than 12,000 long-
term care beneficiaries to transition from institutions back into the community since 2014. This focus on
the social aspects of healthcare delivery have demonstrated positive results in member satisfaction and
resource utilization. For example, South Carolina, Michigan, Ohio and Illinois all saw 14-21% reductions
of in-patient admissions, and 7-17% reductions of nursing home admissions.8
Lyrical’s Four Pillars of Impact
100% of Centene’s business is focused on improving health outcomes and lowering costs,
Material
predominantly for lower income populations.
At the company level, we are working with the company to track the progress of state-specific
programs, such as the stable housing program discussed above. At the industry level, we are
Measurable
tracking the financial savings that managed care provides over traditional fee-for-service. At
the national level, we are tracking statistics on Medicaid healthcare expenditures per person.
By improving health outcomes, Centene reduces expenses, which creates mutual benefits for
shareholders, policyholders, and governments. Centene has two ESHG related committees,
one at the Board level and one at the employee level. The CEO participates in Board level
Intentional
committee meetings and is focused on its progress and priorities. Centene is a participant of
the United Nations Global Compact and an early signatory to the Ethical Principles in Health
Care.
Centene is considered an ESG leader by Sustainaltyics, and our internal research has
confirmed that negative externalities do not outweigh the company’s positive impact.
Sustainable
• CDP (Not Scored), Sustainalytics Medium Risk (22.7), MSCI (BBB)
13Concentrix Corporation
Company Description:
Concentrix is a customer experience solutions provider.
Its offerings facilitate communication between clients
and their customers, provide analytics, and handle back-
office processing. The firm’s portfolio of services includes
support channels, such as voice, chat, email, social
media, and custom applications. The company has more
than 650 clients and boasts a 96% client renewal rate.
Environmental or Social Problem:
Even before the outbreak of COVID-19, one in five countries –
home to billions of people living in poverty – were likely to see
per capita incomes decline in 2020. Inequalities have been
accentuated by the impact of the COVID-19 pandemic. More
than one in six young people have stopped working since the
onset of the pandemic, while those who remain employed have
seen their working hours cut by 23%.1
In many countries, the ability to earn a living wage is made more
challenging because of discriminatory hiring practices based on
gender, sexual orientation, religion, or heritage. According to the
World Bank, as of 2018, 104 economies still had laws preventing
women from working in specific jobs and 59 economies lacked
laws on sexual harassment in the workplace.2
Concentrix’s Impact:
Concentrix provides stable and attractive employment for more than 250,000 employees in more than 40
countries, many in emerging markets. Concentrix is a leader in terms of protecting its staff. When the
COVID-19 pandemic hit, the company voluntarily continued to pay all its employees even though 70,000
were unable to work because of restricted travel or movement. While continuing to compensate its
people, Concentrix adapted quickly to ensure that its staff had the technology, including broadband
connections, to work from home and to support themselves and their families. The company quickly
enhanced its policies to better support the staff working from home and adapted benefits to include
telemedicine and mental health offerings. As the CEO said in March 2020, “by principle of the company,
we pay the staff.”3
14Concentrix Corporation
Beyond offering stable career opportunities in unstable areas, Concentrix seeks out a diverse and inclusive
workforce, including in areas where minority groups are more at-risk. Diversity, equity, and inclusion is in
the company’s DNA. Concentrix’s diversity score is in the top 5% of companies in the U.S., according to
Comparably.4 At different levels of the company, from entry-level to manager, Concentrix strives to be above
the national averages for female diversity. In fact, 38% of Concentrix’s leadership team is comprised of
women, compared to the global average of 29%.5 Concentrix is a vocal defender of LGBTQ rights, often in
countries where equal rights are denied. For example, Concentrix has supported the Pride March in the
Philippines, where, in 2019, congress failed to pass pending legislation prohibiting discrimination based on
sexual orientation.
Lyrical’s Four Pillars of Impact
Concentrix succeeds because of its people. 100% of its business is aligned with creating
Material decent work and economic growth and reducing inequalities for people both in developed
and developing markets.
In 2Q20, Concentrix invested $52 million for a safe environment and for staff that was unable
to work from their traditional office space. Because of that investment, Concentrix achieved
Measurable 100% productivity and was able to retain all its staff, while providing excellent service for its
clients. As of 3Q20, Concentrix was growing revenue 11% year-over-year in its emerging
markets, creating attractive job opportunities in developing countries.
Concentrix’s values are based on a culture of belonging. Concentrix celebrates and embraces
the diversity of its staff with inclusion initiatives such as global listening circles, and
Intentional community/culture days. In 2020, Jiquanda Nelson joined Concentrix as the Senior Director of
Community and Culture. Jiquanda is responsible for leading efforts for staff experience,
diversity, equity and inclusion (DEI), wellbeing, and Global Citizenship.
Concentrix is not currently rated by Sustainalytics as it spun out from SYNNEX Corporation on
12/1/2020. SYNNEX is considered an ESG leader by Sustainalytics, and our internal research
Sustainable has confirmed that negative externalities do not outweigh positive impact.
• CDP (Not Scored), Sustainalytics Low Risk (10.7), MSCI (Not Scored)
15Crown Holdings, Inc.
Company Description:
Founded in 1892, Crown Holdings is the second largest global
producer of beverage and food cans, the most recycled drinks
packaging material in the world. The company operates 146
plants in 36 countries and derives 28% of sales from the
United States / Canada, 34% from Western Europe, and 38%
from developing markets. Crown has joined the CDP, RE100,
and SBTi and is the only North American can maker to run
their facilities exclusively on renewable energy.
Environmental or Social Problem:
Driven by rising global real incomes, increasing urbanization, and an
expanding middle class that demands convenience, the global
packaging market reached $920 billion in 2019, and is expected to
grow at a 2.8% rate annually through 2024.1 Plastics are the most-
used substrate, representing 45% of the market, and they are also
expected to grow the fastest. This creates a major problem for the
world because plastics have a very low recycling rate of only 9%.2
This means much of the energy consumed in making plastics goes to
only one use, which makes the lifecycle of a plastic product highly
wasteful. It also means that most plastics end up in landfills, where
they take more than 400 years to degrade, or in our water system
where they wreak havoc for our sea life. Considering the beverage
market alone, about 60 million plastic bottles end up in landfills and
incinerators each day, adding up to 22 billion plastic bottles per year.
Crown Holdings GHG Emissions Reduction:
16Crown Holdings, Inc.
Crown’s Impact:
Aluminum cans can be recycled infinitely and—because recycled aluminum is much more valuable than
other substrates—recycling infrastructure has been built around the world, leading to recycled content per
can of 73%.3 PET and glass bottles only contain recycled content of 6% and 23%. As shown below, while the
energy required to produce an aluminum can is about 100% higher than a PET bottle, its material gets
reused almost four times through its life. Because the energy consumed in making recycled packaging is
significantly lower than virgin packaging, higher recycling rates result in dramatically lower energy
consumption per use. In this way, cans are about 35% and 72% respectively, more energy-friendly per use
than plastic and glass bottles.
Fossil Fuel
Recycled Recycle Energy Energy
Packaging Type Consumption Lifetime Uses
Content Savings Consumption/Use
(MJ-equivalent)
Aluminum Can 7.85 73% 95% 3.7x 2.41
PET Bottle 3.99 6% 90% 1.1x 3.77
Glass Bottle 9.3 23% 30% 1.3x 8.66
Lyrical’s Four Pillars of Impact
Approximately 70% of Crown’s revenue comes from environmentally friendly metal beverage
Material
and food cans.
Aluminum cans are about 35% and 72% more energy-friendly per use than plastic and glass
bottles over the material’s lifecycle. Compared with glass, cans are also 40% lighter, and the
Measurable
shape allows for 50% more cans to be packed per truck. This significantly reduces transport
emissions.
Crown’s top-level management has 100% buy-in to their sustainability efforts, and they
actively seek for aluminum to replace less environmental substrates, for example by selling
Intentional water in cans. Crown is the only can maker in North America to run their facilities exclusively
on renewables. The company has impressive long-term goals, joining RE100 and SBTI and
committing to stringent Twentyby30 goals.
CCK is considered an ESG leader by Sustainaltyics, and our internal research has confirmed
that negative externalities do not outweigh positive impact
Sustainable
• CDP (B), Sustainalytics Low Risk (11.7), MSCI (BB)
17Elis SA
Company Description:
Elis provides rental services of flat linen, work clothes,
and hygiene & well-being equipment. The company
serves a diversified client base of 400,000 customers
from 440 facilities across 28 countries. 29% of revenue
are from general industry end-markets, 27% from
hospitality, 26% from healthcare, and 18% from other
trade & services. Elis has widespread geographic
exposure within Europe, which makes up 92% of sales.
Environmental or Social Problem:
Washing linens and uniforms is critical for good health, but it
also consumes a significant amount of resources. To promote
good health, we must effectively wash linens for both hospitals
and hotels as well as uniforms for workers, especially those in
health-sensitive areas like food manufacturing. Without clean
sheets on hospital beds, we expose patients to an unnecessary
risk of infection. Despite the positive benefits of washing, the
way in which it is done must be improved. 50% of linens and
70% of uniforms are still cleaned in-house.1 In-house cleaning
is typically inefficient and wasteful, leading to significant waste
of water and energy, which is one reason Elis can reduce water
consumption by around 75% when outsourcing washing. In-
house cleaning also risks using cotton that may be at-risk of
being produced with low-pay, illegal labor practices. The UN
estimates that 17 countries and 102,000 workers harvest
cotton illegally with forced and child labor.2
18Elis SA
Elis’ Impact:
Elis is a circular economy business, promoting the efficient reuse of linens for as many times as possible. Elis
collects linens and uniforms from its customers within a small radius of its large cleaning centers. Each van
that gathers these linens is operated with an “eco-driving” process, whereby software directs the driver to
collect in the most efficient path to reduce fuel consumption. Once collected, dirty linens are cleaned in
massive washers, which use significantly less water than standard commercial machines at about 1.3 liters
per kilogram of laundry, compared to 4.3 – 6.0 for standard washers.3 These machines are built to reuse
water to reduce waste and utilize precise chemical injection systems to control and minimize the amount of
cleaning fluid used. Overall, Elis estimates its outsourced cleaning for uniforms and linens is about 7x and 2x
more resource-efficient than insourced cleaning.
Another key challenge that Elis seeks to solve is responsible consumption and sourcing of the linens
themselves. Elis utilizes an RFID tracking system to ensure its linens are used as many times as possible
before their end-of-life, when over 80% of Elis textiles are recycled. To ensure responsible production, 70%
of linens are purchased from European direct suppliers and 94% are purchased from firms covered by CSR
assessments.4 Any supplier not covered by a CSR assessment receives a rigorous third-party audit before
Elis can purchase from them.
Lyrical’s Four Pillars of Impact
100% of Elis revenue comes from more efficient outsourced cleaning services, performed in a
Material
manner that promotes the circular economy.
Tracing Elis’ impact means tracking the percent of the market that shifts from insourced to
outsourced. Furthermore, we monitor the company on its water and energy consumption
Measurable goals, where since 2010 they have delivered a reduction per kilogram of laundry of 40% and
23%, respectively, across Europe. By 2025, Elis targets another reduction of 50% and 35% on
water and energy use.
Commitment to impact at Elis runs all the way to the top. In conversations with the company
about its impact initiatives, it is CFO Louis Guyot who leads the conversation. Beyond a core
Intentional business centered on impact, Elis makes it commitment clear via targeted ESG goals and by
thinking about the environment in every aspect of its business, for example by using hybrid
and full-electric delivery trucks.
Elis is considered medium risk by Sustainalytics, and our internal research has confirmed that
negative externalities do not outweigh the company’s positive impact.
Sustainable
• CDP (Not Scored), Sustainalytics Medium Risk (24.0), MSCI (Not Scored)
19Flex Ltd.
Company Description:
Flex is the second largest outsourced manufacturing
company in the world, with approximately 200,000
employees at 100 sites in 30 countries. Flex makes a wide
variety of everyday products for well-known OEMs, such as
desktop computers for Apple, wearable devices for Fitbit,
in-car connectivity products for Ford, connected medical
devices, and many more. Through its NexTracker brand, Flex
is also the leading global producer of solar trackers, which
automatically tilt solar panels to follow the sun.
Environmental or Social Problem:
The manufacturing industry is generally inefficient,
accounting for about 10% of global emissions. While many
companies increasingly want and need to reduce their
environmental impact from manufacturing their products,
they don’t know how to effectively reduce and measure
their emissions. Insourced manufacturing tends to be more
wasteful than outsourced production.
Another key problem Flex tackles is maximizing solar panel
efficiency via solar array positioning. If a solar panel remains
static throughout the day, it fails to capture the maximum
amount of energy because the sun moves through the sky.
20Flex Ltd.
Flex’s Impact:
Outsourced manufacturing is on average more efficient than manufacturing in house. Outsourced
manufacturers benefit from scale, expertise, and technology. They focus on one thing, which is to deliver
finished good at the lowest cost, using the least amount of materials and energy.1 Flex goods are also made
in environmentally friendly facilities with energy-efficient HVAC machines, LED lighting, renewable powered
generation, and advanced waste diversion methods that have diverted 89% of total waste, near their goal of
95%. Over the past five years alone, Flex has pursued hundreds of projects to reduce environmental impact,
and energy intensity (scope 1 and scope 2 emissions per revenue dollars) has declined 9% to 33 tons of C02
per $1 million of revenue. We believe this is best-in-class for a manufacturing operation and is 20% better
than Foxconn, which is the largest scale player in the space.2
Beyond its primary impact as a more efficient manufacturer, Flex is the #1 global producer of solar trackers,
which improve the utilization of solar panels by automatically positioning them throughout the day to
capture maximum sunlight. Flex owns and operates Nextracker, the technology leader in this fast-growing
space with a 30% market share. Solar trackers deliver an uplift in PV production of 15-30% depending on
location, allowing operators to get materially more clean energy out of each panel.3 While NexTracker is
only about 15% of operating profit today, we expect this figure to climb with rapid industry growth.
Lyrical’s Four Pillars of Impact
100% of Flex’s revenue comes from efficient outsourced manufacturing or solar tracker
Material
production.
We measure and monitor Flex’s impact by tracking their annual energy intensity compared
with peers. We also track key Flex internal initiatives like increasing number of facilities
Measurable
meeting ISO 14001 standards (60% as of 2019). For NexTracker, we track the percent of Flex
operating profit coming from solar trackers, and we track its global market share.
Flex has a clear culture of sustainability, shown for example by their commitment in 2016 to
meet 20 goals by 2020 that are aligned with the UN’s SDG’s. This initiative was well ahead of
most companies.4 New CEO Revathi Advaithi, an Indian American woman—is a well-known
Intentional
advocate for diversity and inclusion in the workplace and for STEM education for young
women. She is focused on pivoting Flex to not only manufacture better but to also focus on
producing products, like in healthcare, that improve people’s lives.
Flex is considered an ESG leader by Sustainaltyics, and our internal research has confirmed
that negative externalities do not outweigh positive impact.
Sustainable
• CDP (A-), Sustainalytics Negligible Risk (8.6), MSCI (Not Scored)
21Grupo Catalana Occidente S.A.
Company Description:
Grupo Catalana Occidente is a multi-line insurance
company, headquartered in Spain. Traditional insurance
(auto, small commercial, and life) accounts for 40% of
profit and credit insurance - which provides accounts
receivables protection – generates 60% of profit.
Traditional insurance is primarily offered in Spain and
Portugal, and the company focuses on prevention, for
example by providing free auto maintenance and pipe
cleaning to prevent setbacks before they become claims.
The credit insurance business, Atradius, is the #2 player
in the world with broad European exposure and
operations in the Americas and Asia-Pacific.
Environmental or Social Problem:
Grupo Catalana’s credit insurance
business helps solve a key problem of
trust between small and medium
businesses and prospective
customers. In the U.S. alone, it is
estimated that around $50 billion of
orders each year are not fulfilled
because sellers are reluctant of the
credit-worthiness of buyers.1 About
60% of this lost revenue is borne by
small businesses generating $20
million in revenue or less.2 It is during
the most challenging economics
times, like in the pandemic, that small
businesses need revenue the most,
and yet these are the times they are
also less likely to trust buyers.
22Grupo Catalana Occidente S.A.
Grupo Catalana’s Impact:
Through it Atradius business, Grupo Catalana helps to solve this mistrust by insuring the receivables on the
balance sheet of small and medium businesses around the world. For approximately 25 to 35 basis points,
Atradius will insure up to 90% of a firm’s receivables, allowing trust to exist between counterparties and for
global trade to function even in challenging times. Credit insurance is critical to the growth of the global
economy; it is estimated that a 10% increase in credit insurance availability improves global trade flows by
1%.3
Lyrical’s Four Pillars of Impact
Approximately half of Grupo Catalana’s revenue and 60% of its profit comes from its credit
Material
insurance division, which facilitates global trade.
As one of the largest companies in global trade insurance, we measure and monitor the
Measurable company’s impact by tracking the growth rate of the market as well as GCO’s share within the
market.
Grupo Catalana was founded and is controlled by the Serra family in Spain, who pride
themselves on being strong humanitarian leaders. The family started the Jesus Serra
Foundation in 1998, which is now a cornerstone of the GCO group, bringing together
Intentional
employees across business lines to contribute to causes in research, teaching, social action
and more. GCO is a signatory to the UNEP-FI Principles for Sustainable Insurance, the UNPRI,
and outwardly committed to the UN SDG’s.
GCO is considered high risk by Sustainalytics based on its inclusion in the diversified insurance
services industry, which carries higher risk according to Sustainalytics. The Sustainalytics
report does not provide detail on any company-specific issues that result in elevated risk. Our
Sustainable
internal research has confirmed that negative externalities do not outweigh positive impact.
• CDP (No Response), Sustainalytics High Risk (33.9), MSCI (Not Scored)
23Hanesbrands Inc.
Company Description:
Hanesbrands is the world’s largest maker of basic apparel,
including underwear, activewear, intimates, socks, and
shapewear and a global leader in environmentally-friendly
apparel production. Basic apparel does not go out of style,
leading to long shelf lives and significantly less waste than
other forms of fashion. Hanes is a founding member of the
Sustainable Apparel Coalition, was the first leading apparel
manufacturer to join The Sustainability Consortium and is
one of only four apparel companies to become a member of
the Corporate Eco Forum.
Environmental or Social Problem:
The global apparel market is expected to grow at a 5.5% CAGR from
2020-2025 as rising per capita income, favorable demographics, and a
shift in preference to branded products is projected to drive demand.1
This growth exacerbates an ongoing problem created by the resource-
intensive nature of clothing production. The fashion sector is
responsible for ~4% of total global greenhouse gas emissions2 and for
2% of all freshwater extraction globally.3 Furthermore, outside the
United States the cotton industry has routinely faced criticism for
employing child and migrant labor.
Hanesbrands’ Impact:
Hanesbrands makes a positive environmental impact by producing
timeless products in an environmentally-friendly and socially
conscious manner. Unlike most of the industry, Hanes manufactures
most of its units (~70%) through its wholly owned, end-to-end,
internal supply chain. This allows Hanes to monitor and control the
environmental impact of its production, and Hanes has invested to be
able to produce clothes in water unconstrained areas and in highly
efficient facilities.
24Hanesbrands Inc.
By sourcing most of its cotton from the U.S., Hanes also ensures that its clothes are sourced from
sustainable cotton. In contrast, most of the apparel industry utilizes outsourced manufacturing, often in
resource-strained regions of the world and sources Asian cotton which is hard to certify as having been
picked by legal, adult workers. The ecological benefits from Hanes’ captive structure are realized throughout
its supply chain, as noted below:
1. Sustainable Water Usage - Hanes is an industry leader in water reduction efforts. Since 2007, Hanes has
reduced its total water use by 40%4 and intends to reduce it by an additional 25% by 2030. In addition,
most of the cotton Hanesbrands’ consumes is grown in the Southeastern U.S.. In that region, natural
rainfall exceeds the needs of Hanes’ cotton plants and its textile mills are purposely sited in areas that
are not water-stressed.
2. Sustainable Cotton - Hanesbrands is a leader in sourcing sustainable cotton. Hanes sources over 60% of
its cotton from U.S. growers5, who are chosen because of best-in-class practices on water and pesticide
use. By 2025, Hanesbrands aims to use 100% sustainable cotton, certified by leading organizations such
as the Better Cotton Initiative.
3. Recycled Polyester - By 2025, Hanes has set a goal of using 100% recycled polyester in its products
(compared to the industry sourcing more than 97% of materials from virgin feedstock, according to the
Circular Fibres Institute)6. In fact, over the past five years Hanes has incorporated more than 20 million
pounds of recycled products into its products, which is the equivalent of recycling 450 million plastic
bottles.7
4. Electricity from Renewable Sources – Beginning in 2008, Hanes began a significant investment in
biomass technologies. For example, in its El Salvador location, Hanes operates a state-of-the-art
biomass facility that relies on steam, with the balance of power demand coming from a 100%
renewable geothermal generator. That system saves about 20,000 metric tons of greenhouse gas
emissions per year, equivalent to taking 4,000 cars off the road.8 In 2019, Hanes generated over 40% of
its electricity needs from renewables with the goal of achieving 100% by 2030.9
5. Maximal Waste Diversion - Hanes is a champion in reducing waste through its manufacturing efforts. In
2019, Hanes diverted 90% of its facility waste from landfills10 (compared to the industry at less than
50%),10, 11 recycling more than 101 million pounds of fabric-cut parts, corrugate, plastic, and other
materials. That diversion rate is up from 83% in 2017 with a goal of 100% by 2025.
While Hanes is a clear Impact maker in the 70% of its business where it controls the supply chain, the
company has less control over the 30% of its manufacturing that it outsources. This has been a key area of
research for us as our Sustainability criteria requires that any stock in the GIVES portfolio cannot have
negative aspects of its business that offset the positive impact the company makes.
25Hanesbrands Inc.
Our work has shown that Hanes is still actually able to generate positive change in this portion of the
business by requiring best practices from its chosen partners, including a restricted chemical substance list
and a push towards the use of renewable energy. The biggest challenge in their outsourced manufacturing is
identifying where cotton is farmed, but Hanes is working with the Better Cotton Initiative to improve the
accountability of its emerging markets suppliers. To manage its suppliers, Hanes administers an in-depth,
scored audit protocol of over 265 questions encompassing a broad range of issues, including responsible
labor practices and environmental compliance. Hanes maintains a zero-tolerance policy where they will
either immediately remediate any problem or develop an exit plan.
Hanes goes even further than its own supply chain to tackle global warming. It has teamed up with Tide to
establish a media campaign, championing the benefits of washing clothes with cold water. 90% of the
energy a washing machine uses is from heating the water. But most clothes get just as clean with cold water.
If all Americans switch to washing just one load a week with cold water, we could eliminate carbon
emissions, equal to the amount necessary to power 240,000 homes. Hanes has a goal of creating 300
million impressions by 2022 with this campaign.
Lyrical’s Four Pillars of Impact
Hanesbrands makes a positive environmental impact by producing apparel in an
Material environmentally-friendly and socially conscious manner. Unlike most of the industry, Hanes
manufactures most of its units (~70%) through its captive supply chain.
We measure and monitor Hanes’ internal supply chain on the following goals:
• Water Usage: 25% reduced water consumption by 2030
• Sustainable Cotton: 100% by 2025
Measurable
• Recycled Polyester: 100% by 2025
• Electricity from Renewable Sources: 100% by 2030
• Waste Diversion (fabric-cut parts, plastics, etc.): 100% by 2025
Being a vertically integrated company in the apparel world is rare. Being in full control of much
of its production processes is a huge advantage, that has enabled Hanes to design the most
Intentional forward-looking sustainability policies and systems to positively affect the environment. The
company has an entire website dedicated to its efforts: hbisustains.com, and a very strong
Chief Sustainability Officer who works closely with top management.
HBI is considered an ESG leader by Sustainaltyics, and our internal research has confirmed
that negative externalities at Hanes do not outweight positive impact.
Sustainable
• CDP (A), Sustainalytics Low Risk (14.5), MSCI (Not Scored)
26HCA Healthcare Inc.
Company Description:
HCA Healthcare is the largest health care services
company in the U.S., operating hospitals, freestanding
surgery centers, emergency rooms, and urgent care
centers. With more than 2,000 sites and an
inpatient/outpatient model, HCA has a dense and
integrated network that yields superior operational
efficiencies and exceptional utilization of critical
resources.
Environmental or Social Problem:
Rising healthcare costs are a major problem, especially for lower
and middle-income people in the U.S.. The country spent $3.6
trillion on healthcare in 2018, or greater than $11,000 per capita.1
By 2027 these costs are expected to rise to nearly $17,000 per
capita.2 With healthcare costs outpacing wage inflation, it is
increasingly difficult for many people to afford necessary,
sometimes life-saving healthcare services. A 2016 study from the
University of Chicago revealed that 44% of Americans, including
many who are insured, refused to go to a doctor due to cost
concerns.3
HCA’s Impact:
HCA Offers Superior, High-Quality Healthcare:
• Top hospital ratings: 81% of HCA’s U.S. hospitals received a Hospital
Safety Grade of A or B from the Leapfrog Group in 2019, compared
with just 57% of non-HCA Healthcare U.S. hospitals.4
• Better healthcare outcomes: In 2019, HCA delivered nearly 220,000
babies with a mortality rate of 4.3 per 100,000 deliveries, compared
to 14.2 per 100,000 nationally.5
• Proactive health management: HCA is a leader in combating the
opioid crisis. Data from more than 107,000 surgeries revealed a
decrease up to 50% in opioid use for patients using HCA’s Enhanced
Surgical Recovery (ESR) approach.5
27HCA Healthcare Inc.
HCA’s core business improves health outcomes through their superior healthcare services, while also
leveraging their scale and inpatient/outpatient model to lower costs. Industry data and ratings show HCA
operates one of best-performing healthcare systems in the country, consistently delivering top results on
health outcomes.
HCA delivers these superior health results while also doing it at a lower cost, which comes from its outpatient
offerings and from scale. Hospitals provide some of the highest-quality care and are needed to perform the
most complex and time-sensitive procedures, but they are also an expensive treatment option. About 40% of
HCA revenues come from outpatient facilities, where similar procedures can be done for up to a 50% lower
cost.6 HCA’s integrated model, and strong local market positions, allow the company to best utilize its
resources by directing patients requiring critical procedures to hospitals while sending patients with more
routine problems to lower-cost outpatient facilities.
HCA also delivers lower cost healthcare with its scale advantages, operating as the largest U.S. healthcare
company with over 2,000 sites and as the #1 or #2 market share player in 27 different markets.7 For example,
HCA realizes 10-18% cost savings on medical equipment and supplies when compared with lower-scale peers
as a result of using its group purchasing organization (GPO).8 Most of these savings are passed along to
patients.
Lyrical’s Four Pillars of Impact
100% of HCA Healthcare’s business is focused on improving health outcomes through superior
Material
healthcare, while also lowering costs to make healthcare more affordable.
We measure and monitor HCA’s impact by tracking the portion of revenue that is derived from
Measurable outpatient services, which we expect to continue to grow rapidly from 40% of total revenue
today. We also track HCA hospital rankings.
Sustainability is deeply rooted in HCA’s culture. HCA is an active member of Practice
Greenhealth (PGH), a founder of the Healthier Hospitals Initiative (HHI), and a founding
Intentional sponsor of the Greening the Operating Room initiative. The firm has a multi-disciplinary
Sustainability Steering Committee that above all else is committed to the care and
improvement of human life.
HCA is considered medium risk by Sustainaltyics, and our internal research has confirmed that
negative externalities do not outweigh positive impact.
Sustainable
• CDP (Not Scored), Sustainalytics Medium Risk (26.6), MSCI (AA)
28Hitachi, Ltd.
Company Description:
Hitachi is a technology-driven conglomerate with
global leadership positions in IT services, internet-of-
things solutions, smart-grid technologies, smart trains
and elevators, and more. Approximately 50% of sales
are from Japan, 20% from other parts of Asia, and 30%
from the rest of the world.
Environmental or Social Problem:
Traditional electrical power grids are not yet suited to handle the coming
uptake in renewable electricity generation and they are wasteful of
energy resources. In the U.S., renewables are expected to increase from
750 billion kwh in 2019 (19% of total generation) to over 2 trillion kwh by
2050 (38% of total generation).1 America’s electricity grid was designed
over 100 years ago. Today, clean renewable energy can be harnessed
much closer to the end user, so electricity doesn’t have to come from
polluting power plants far away. But the electricity grid needs to be
modernized to allow for two-way electricity transmission and to optimize
for the use of renewables, which have volatile daily production schedules.
Hitachi also addresses the problem of emissions and resource-
consumption across the manufacturing and transportation sectors.
Transport and Industry account for about 50% of emissions across the
U.S..2 A significant chunk of these emissions could be reduced by more
efficient operations.
Hitachi’s Impact:
Hitachi helps to solve problems with our traditional grid infrastructure,
which paves the way for more renewable energy use.
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