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Politics

Climate Change Is Making CEOs Nervous

On corporate climate resilience, the freezing Iowa caucus, and EV tipping points

Briefing image.
Tesla's New Supply Chain Woes
Heatmap Illustration/Getty Images

Current conditions: New York City’s Central Park has officially broken its 701-day snow-free streak • Extreme flooding from Cyclone Belal submerged cars in the ocean island nation of Mauritius • It’s 24 degrees Fahrenheit and cloudy in Davos, where the 54th annual World Economic Forum gathering begins this week.

THE TOP FIVE

1. Trump’s Iowa speeches offer preview of 2024 climate attack lines

Former President Donald Trump handily won the Republican Iowa caucus on Monday night, and his speeches at the event were sprinkled with anti-climate lines we’re likely to hear more of in his 2024 presidential campaign, writes Heatmap’s Jeva Lange. In his victory speech, Trump made a jab about electric vehicle range anxiety, and promised to do more “drilling” if he gets the White House back. Earlier in the evening he told would-be voters that “I stood up for ethanol like nobody has ever stood up for it” – a dig at Biden’s climate agenda, which has aimed to limit liquid fuel in vehicles, a sensitive issue for Iowa voters during their primary season. On Sunday a group of young climate protesters disrupted one of Trump’s rallies, calling him a “climate criminal.” Trump told them to “go home to mommy.”

This was the coldest caucus in Iowa’s history thanks to a weather system that dragged temperatures below freezing for most of the country. As Lange notes: “Scientists say the arctic blast is exactly the kind of extreme event we can expect more of in a climate-changed world.”

2. Cold snap forces mass school closures

Half a million students in southern states have the day off as a dangerous cold snap forces school closures across Alabama, Arkansas, Tennessee, and Texas. ERCOT, which manages most of Texas’ electric load, has asked residents to conserve energy as the state faces wind chill advisories and hard freeze warnings. At least five deaths have so far been attributed to the severe winter weather. More than 70 million people across the country remain under winter weather alerts of some kind, and something like 250 daily cold temperature records are expected to be shattered today. Temperatures could warm slightly Wednesday but the National Weather Service expects another arctic blast to descend Thursday. Here's a look at the temperature lows currently forecast for Friday night:

Temperature lows forecast for Friday night NOAA and NWS

3. Investors pressure Shell on warming emissions

Oil and gas giant Shell is facing its “most significant shareholder push on climate policy,” reports the Financial Times. A group of 27 investors – including Europe’s largest asset manager Amundi – are backing an independent resolution filed by activist group Follow This demanding the company do more to slash its greenhouse gas emissions. The resolution calls on Shell to better align its pollution targets with the Paris Agreement and focuses specifically on the emissions customers generate when they use Shell’s products, known as Scope 3 emissions. The company called the resolution “unrealistic and simplistic” and insisted its targets already align with the Paris Agreement. This isn’t Follow This’ first resolution aimed at Shell, but this one appears to have the most momentum: Its investor-backers own about 5% of Shell’s shares. Support for the resolution is expected to grow ahead of a vote at the company’s annual general meeting in May, The Guardian reports.

4. Survey: CEOs increasingly worried about climate change

A growing number of company executives across the globe are worried their firms won’t survive the next 10 years unless they undergo a major overhaul, according to a survey of 4,700 CEOs conducted by consulting firm PricewaterhouseCoopers (PwC). About 45% of the respondents are concerned about their current business models, up from 39% on last year’s survey. Among their top anxieties are artificial intelligence and – you guessed it – climate change. Nearly one-third of CEOs say they expect climate change to “alter the way they create, deliver, and capture value over the next three years.” About two-thirds of respondents say their firms are improving their energy efficiency, but support is lacking for other climate-related company initiatives:

Company actions related to climate change PwC

5. BMW says it has passed the EV tipping point

The electric vehicle tipping point has come and gone for carmaker BMW, according to the company’s chief financial officer. Most of BMW’s sales growth now comes from EVs, not combustion vehicles, CFO Walter Mertl said at a media event yesterday. He added that “the current sales plateau of combustion cars will continue and then fall off slightly.” After the company’s EV sales nearly doubled in 2023 to more than 375,000, EVs now make up 15% of total sales, and the company expects to sell more than 500,000 EVs in 2024, Reuters reports.

THE KICKER

FEMA has partnered with the Red Cross to create a printable emergency preparedness children’s game featuring a cartoon penguin named Pedro as its main character:

Ready.gov

Yellow

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Spotlight

Trump Taps Nashville Legend to Fight Solar and Wind Farms

And data centers might be collateral damage.

Farmland.
Simon Abranowicz | Getty Images | Unsplash

After derailing gigawatts of renewable power with a permitting freeze, the Trump administration is expanding its war on renewable energy, retaining one of country music’s biggest stars in a PR offensive against utility-scale projects on “prime farmland.”

The administration recently onboarded John Rich – one half of the stadium-packing American musical duo Big & Rich – to be Trump’s “special envoy for American landowners.” Rich entered activism around landowner rights last January when he backed opponents fighting a large Tennessee Valley Authority transmission project routed through his home county of Cheatham, Tennessee. This led to him joining the Trump team, where he’s fashioning himself as a go-to guy and cheerleader for anyone who wants Trump to help stop a solar or wind farm they don’t want built.

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Hotspots

Data Centers Are the Election Year Villain

And more of the week’s top news around project fights.

Data Centers Are the Election Year Villain
Heatmap Illustration

1. Kansas City, Missouri – Data centers are so toxic that politicians are using them as boogeymen in totally unrelated policy discussions.

  • All week I’ve been thinking about Missouri, where a widely-screened TV campaign ad is airing screeds against AI hyperscale projects to sell a constitutional amendment initiative up for a vote in this year’s November elections. “That hum is the sound of Big Tech making money on online gambling, for porn,” says a nameless man in the ad. “Amendment 5 makes Big Tech pay so you don’t have to. Yes on Amendment 5.”
  • What does Amendment 5 do? Based on the ad, you would think it was focused on tax exemptions for data centers. But no – a yes vote supports cutting the state income tax, a proposal backed by Republican Gov. Mike Kehoe.
  • The ad is misinformation and a mind-blowing use of a confusing conversation around tech infrastructure most were unfamiliar with before this year. Per reporting by the Missouri Independent, the state’s existing tax exemptions for data centers would stay in place if the amendment was adopted.
  • My gut tells me this is only the beginning of the data center industry’s transformation into an election year villain.

2. Ingham County, Michigan – We have our first major anti-data center candidate in a Democratic congressional primary.

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Q&A

Why Data Center NDAs Are a Big Mistake

A conversation with Grant Gutierrez of Carbon Direct

Why Data Center NDAs Are a Big Mistake
Heatmap Illustration

This week’s conversation is with Grant Gutierrez, head of community impacts at carbon management company Carbon Direct. This week Carbon Direct published a white paper Gutierrez authored on opposition around data centers he’s studied. His research reinforces much of what Heatmap Pro has uncovered, but I was particularly intrigued by a topline finding – that transparency is the most common thread in the 46 data center fights he looked into. Was he seeing what I’ve been seeing? So I asked him to hop onto a Zoom call and let me know his thoughts.

The following conversation was lightly edited for clarity.

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