It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Sunday, November 07, 2021
'Millions of stars': Astronaut shares shimmering space views from the ISS
The beauty of the cosmos shows up in a trio of stunning images.
European Space Agency astronaut Thomas Pesquet shared some different ISS views this week, and they star a whole lot of stars.
"When you let your eyes adapt to the night, you start seeing millions of stars and it's amazing," Pesquet tweeted on Wednesday. The astronaut shared three photos that all show parts of the station and the gentle glowing curve of Earth. But the thick speckles of stars are what draw the eye.
There may not literally be millions of stars visible in the images, but there are way more than you'd want to try to count. The slice of space visible from the ISS shows just a fraction of what's out there in the universe. According to NASA, some astronomers estimate our own galaxy, the Milky Way, contains at least 100 billion stars.
Oh my stars. ESA astronaut Thomas Pesquet delivered some stunning space views full of stars as seen from the ISS.ESA/NASA–T. Pesquet
"You always tend to focus on Earth when you take pictures from the International Space Station, because it's right there in front of you when you look out the window, in all its splendor and diversity, but there's also a lot of beauty in the cosmos itself, it's just harder to see (and to photograph) at first," Pesquet said on Flickr.
Pesquet is set to return to Earth soon on a SpaceX Crew Dragon spacecraft. He's dedicated some of his time in orbit to delivering knockout photos, including this epic aurora image. His skill with a camera will be missed, but he's cemented his legacy as a standout space photographer.
Australia, Canada and Japan team up to send a rover to Moon by 2024
The Australian Space Agency is already under contract with NASA to send another rover as early as 2026
NOVEMBER 06, 2021 The ultimate goal is to find a way to extract water from the lunar surface
A mission to be conducted by Canada's Stardust Technologies and Australia's EXPLOR Space Technology may see them hunting for water on the surface of the Moon by 2024.
The Australian Space Agency in October had announced a partnership with its American counterpart, NASA, to send a rover to the Moon as early as 2026. The objective for both missions is the same. (Via The Hindu Business Line)
In conjunction with University of Technology in Sydney, Stardust and EXPLOR will use a 10 kg rover made by iSpace, a space exploration company in Japan. The rover will be outfitted with an integrated robotic arm made by Stardust and EXPLOR.
The arms will use various cameras and sensors to collect high-resolution visual and haptic data that will be sent back to the mission control centre at the University of Technology in Sydney.
It will also send information on the physical and the chemical composition of lunar dust, soil and rocks to try and identify water. The ultimate goal is to identify regions of the Moon, that can be made habitable for food growth and mining operations. This could be a foundation for a manned moon base in the future.
The team is figuring out the design for the robotic arm and ways to integrate it on the rover. They will also undergo testing at a lunar test bed in New South Wales.The rover is also capable of sending back Virtual Reality (VR) data and haptic data, that will allow people on earth to experience the Moon. Haptic data will simulate "touches" made by the robotic arm on the surface.
Australia Aims to Launch Water-
Hunting Lunar Rover in 2024
The moon is a big deal again. NASA is currently working toward a return to the lunar surface with the Artemis program and the (heavily delayed) Space Launch System rocket. Recently, the Australian Space Agency announced it would cooperate with NASA to send a rover to the moon in 2026, but a private Aussie rover could beat it there by two years. This robot, designed in cooperation with the University of Technology Sydney, will search for signs of water on the lunar surface, which could help support future exploration efforts.
This will be a pint-sized rover with limited capabilities, but the designers have come up with some interesting gimmicks. The 22-pound (10 kilograms) rover will measure just 60x60x50cm, slightly larger than your average proverbial breadbox. It will ride to the lunar surface aboard the Hakuto lander. Both the rover and the lander are being designed by ispace, a Japanese aerospace company that gained notoriety during the Google Lunar XPrize contest.
The rover will have a robotic arm, designed by Stardust Technologies (based in Canada) and Australia’s EXPLOR Space Technology. The arm will sport sensors and cameras, some of which will be able to collect “haptic” data. The idea is the mission will beam back this data, and people on Earth will be able to “touch” anything the robot has touched with a special sensor glove. The cameras will also capture high-resolution images to render in virtual reality.
The Hakuto lander designed by ispace.
Currently, the team is testing different configurations for the arm. Once engineers have settled on a design, they will have to integrate it with the rover. Then, EXPLOR Space Technologies will test the fully assembled bot at a facility in Australia. This testing will replicate the conditions on the moon as much as possible, ensuring that the robot will be able to operate in harsh conditions while also maintaining contact with Earth.
As we look to the moon and beyond, having accurate geological data will help make long-term missions more feasible. NASA and other space agencies are very interested in so-called “in situ resource utilization.” That simply means you harvest resources at the destination to build infrastructure, manufacture fuel, grow food, and so on. This can reduce the amount of mass we have to launch from Earth, which is phenomenally expensive. We can look forward to hearing more about the little Aussie rover in the coming months.
Hubble Sees Cleopatra’s Eye Nebula Nov 5, 2021 by Enrico de Lazaro Cleopatra’s Eye, or NGC 1535, is a planetary nebula in the constellation Eridanus. This nebula has an unusual structure that is similar to the better-known NGC 2392, with an outer region and a brighter inner center.The NASA/ESA Hubble Space Telescope has captured this vivid image of NGC 1535, or the Cleopatra’s Eye Nebula.
This Hubble image shows NGC 1535, a planetary nebula located 5,500-7,500 light-years away in the constellation of Eridanus.
Image credit: NASA / ESA / Bond et al. / Gladys Kober, NASA & Catholic University of America.
NGC 1535 is a 10.5-magnitude planetary nebula in the constellation of Eridanus.
Also referred to as BD-13 842, HD 26847 and IRAS 04119-1251 in various astronomical catalogues, it lies at a distance between 5,500 and 7,500 light-years from Earth.
NGC 1535 was first spied by the German-born British astronomer William Herschel on February 1, 1785.
“A planetary nebula forms when a star approximately the size of our Sun dies, exhaling its outer layers into space as the core turns into a white dwarf star,” the Hubble astronomers said.
“Through early telescopes these objects resembled planets — giving them their name — but planetary nebulae are unrelated to actual planets.”
NGC 1535 has an unusual structure that is similar to the better-known Eskimo Nebula (NGC 2392), with an outer region and a brighter inner center.
“Hubble observed this nebula as part of a study of over 100 planetary nebulae with nearby stars,” the researchers said.
“The proximity of the stars indicated a possible gravitational connection between the nearby stars and the central stars of the nebulae.”
“Observations of the distance between NGC 1535’s central star and its possible companion suggest that Cleopatra’s Eye is indeed part of a gravitationally bound binary star system.”
An object is now orbiting alongside China’s Shijian-21 debris mitigation satellite
Shijian-21 lifting off atop a Long March 3B from Xichang at 9:27 a.m. local time, October 24. Credit: CASC
HELSINKI — U.S. space tracking has detected a new object orbiting along with China’s recently launched Shijian-21 space debris mitigation technology satellite.
Shijian-21 was launched into geosynchronous transfer orbit Oct. 23 by a Long March 3B rocket. Chinese state media reported that the satellite would “test and verify space debris mitigation technologies,” but no further details have been revealed.
The Shijian-21 spacecraft was developed by the Shanghai Academy of Spaceflight Technology (SAST). SAST in September unveiled a “supplemental service spacecraft” concept at the Zhuhai Airshow.
On Nov. 3 U.S. Space Force’s 18th Space Control Squadron (SPCS) catalogued a new object alongside Shijian-21 with the international designator 2021-094C. The object is noted as a rocket body and more precisely an apogee kick motor (AKM), used in some launches for a satellite to circularize and lower the inclination of its transfer orbit and enter geostationary orbit.
Apogee kick motors usually perform a final maneuver after satellite separation so as to not pose a threat to active satellites through risk of collision. However both Shijian-21 and the SJ-21 AKM are side by side in geostationary orbit.
It is currently unknown whether the object is an AKM, an object possibly related to space debris mitigation tests, or part of potential counterspace operations tests. The object could be used to test rendezvous and proximity operations, refueling experiments or manipulation using a robotic arm or other means.
Given the lack of transparency the activities of Shijian-21 and its companion are likely to be closely tracked and scrutinized. It also follows complex maneuvers carried out in geostationary orbit by other Chinese test satellites in recent years.
China’s TJS-3 (Tongxin Jishu Shiyan-3) satellite launched in 2018 released a payload of unstated purposes. The pair maneuvered in concert and carried operations including spoofing, which involves coordinated maneuvers at certain times in an attempt to confuse rivals’ space tracking networks.
The activities take place in a context of growing tests of counterspace and clandestine activities in geostationary orbit by China, the U.S. and Russia. An Oct. 28 article published by Breaking Defense highlights some of these activities using videos from commercial space situational awareness company COMSPOC.
These include USA 271, a space surveillance satellite,which approached China’s large Shijian-20 satellite and Russia’s Luch/Olymp approaching to within 1.8 kilometers of a U.S. commercial satellite.
Against this backdrop Lt. Gen. B. Chance Saltzman, U.S. Space Force deputy chief of space operations for operations, cyber and nuclear, suggested Nov. 3 that hotlines could be established with foreign rivals to reduce the risk of an accident or miscalculation triggering conflict, as have been set up previously in other domains and crises.
“I don’t see any reason why a similar approach couldn’t work for the space domain,” Saltzman said.
The nature of the Shijian-21 and the companion “AKM” will likely become more apparent over time, such as if and when the spacecraft maneuver and the nature of any changes of orbits and if these are coordinated. A maneuver by the SJ-21 AKM would indicate an active rather than passive object.
SAST and its parent CASC may also reveal more information if the mission successfully carries out civilian purpose tests such as refueling.
Geostationary satellite servicing is seen as a growing market. Space Logistics, a wholly owned subsidiary of Northrop Grumman, has launched two Mission Extension Vehicles and has released footage of rendezvous with target satellites, while a number of other agencies and companies globally are developing spacecraft and missions.
Strange Object Appears Next To Newly Launched Chinese Satellite In Earth's Orbit
HighlightsThe 'Shijian-21' was launched last month to assess ways in which space debris can be cleaned up in Earth's orbit.Now, a mysterious object has appeared near the recently launched Chinese satellite.
The object is currently in a geostationary orbit next to Shijian-21
The era of space exploration leaves more room for unanswered questions than it provides answers. Now, a mysterious object has appeared near the recently launched Chinese satellite.
The 'Shijian-21' was launched last month to assess ways in which space debris can be cleaned up in Earth's orbit.
Now, the United States Space Force detected a new object suspected to be a rocket body called an "apogee kick motor" or AKM, designed to pull satellites into a geostationary orbit, according to SpaceNews.
NASA/Reuters What is this strange object?
The object is currently in a geostationary orbit next to Shijian-21. This is odd because AKMs are designed to get out of the way of nearby satellites to avoid a collision.
Owing to this strange behaviour of the suspected AKM, observers are confused. For starters, it could be an entirely unrelated object. The fact that the Chinese government keeps all of its space activities under wraps means we may never find out the true origin and purpose of the object.
While countries claim their new tech is aimed at cleaning space debris, equipping satellites with capabilities to knock down satellites of other countries is a powerful capability, as space becomes the latest place for countries to exercise their power, dubbed as "space wars."
The United States, Russia, and China are at the forefront of this war, as always. Signs of the challenges to come have already become pronounced. For instance, last week Breaking Defense reported that a Chinese satellite was following an American satellite and adjusting its orbit to keep up.
NOONE JUST 'FALLS' OUT OF A WINDOW
Russian diplomat found dead in Berlin was intelligence officer
German media identify man who apparently fell from window of Russian embassy as member of FSB
A police officer stands in front of the Russian embassy in Berlin.
A Russian diplomat found dead near the country’s embassy in Berlin last month was an undercover intelligence agent, German media have reported.
The news magazine Der Spiegel reported on Friday that police had recovered the body of a Russian diplomat who apparently fell from an embassy window, and that the man had been identified as a member of the Federal Security Service (FSB), Russia’s main intelligence and law enforcement agency.
The death has not previously been reported. Der Spiegel said police had discovered the body near the embassy on 19 October and that emergency services were unable to resuscitate. The news outlet reported that German security sources were not sure of the cause of death and that the Russian embassy had not authorised an autopsy.
The embassy has declined to comment on the death of any of its staff. The German foreign ministry has confirmed the death of a Russian diplomat but said it cannot give more information.
The investigative news outlet Bellingcat, citing leaked databases, identified the intelligence agent as the son of a high-ranking FSB officer, a deputy director of the intelligence agency’s Second Service, which has been accused of plotting overseas assassinations.
Those include the 2019 murder of Zelimkhan Khangoshvili. The former Chechen rebel commander, who was a Georgian citizen, was killed in Berlin’s Kleiner Tiergarten. Other targets of the Second Service have included the Russian opposition leader Alexei Navalny, who almost died after a poisoning attack in 2020. Russia has denied it was behind both attacks.
According to Bellingcat, the diplomat arrived in Berlin two months before Khangoshvili’s murder. There is no evidence linking the two events, the outlet reported. Before that posting, the diplomat was posted to Russia’s mission to the United Nations in Vienna.
Here’s How Much Elon Musk Would Pay In Taxes If He Sells 10% Of His Tesla Stock
Musk owns 170.49 million shares of Tesla, plus a bunch of very valuable options. Leaving the options aside, 10% of his stock is 17.049 million shares, worth $20.8 billion based on Friday’s closing price of $1,222.09 a share.
What would Musk pay in taxes on a $20.8 billion sale? Just about $5 billion, assuming he’s not offsetting it with losses on other investments. His capital gain is enormous. Musk paid about 49 cents a share for his initial investment in Tesla, according to the SEC filing for the company’s initial public offering; the shares have split 5 for 1 since then, so his cost basis from that investment is just under 10 cents a share.
The notion of selling shares follows a short-lived proposal by Sen. Ron Wyden to tax billionaires’ unrealized gains in response to the fact that some billionaires don’t pay federal income tax because they can borrow against their shares instead of selling them. Musk tweeted on Saturday “Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.”
Since Tesla went public in 2010, Musk has only sold stock twice. In 2016, he sold 2.7 million shares for a total of $593 million in order to cover taxes for options he had exercised. In July 2010, when Tesla had its initial public offering, Musk sold a bit more than 1.4 million shares for a pre-tax total of $24 million. The stock has climbed nearly 1,400% since the start of 2020 and Musk has gotten nearly $294 billion richer in the process. Forbes calculates his net worth as of Friday evening November 5 at $318.4 billion. Musk is the first billionaire Forbes has tracked in our four decades of chronicling the richest Americans to cross the $300 billion mark.
Musk has made a big deal about being cash poor and selling all his homes. He lives in a tiny box house that he says he rents from SpaceX, the rocket company he runs. This Twitter poll may be a way for Musk to make it look acceptable to cash out of some of his stock, which he has suggested is trading too high. So one way to look at this: It’s not about taxes but about moving tens of billions of volatile Tesla stock into cash—at a time when the stock looks incredibly pricey.
It’s unlikely that Musk would sell 17 million shares of Tesla in one day. Such a flood of shares on the market could drive down the stock price. A more likely scenario would be smaller sales over an extended period of time—maybe months or a year, or possibly longer. If the past is any guide, we’ll likely know more soon by keeping an eye on Musk’s Twitter account. Musk has not responded to a request for comment from Forbes on his plan for the sale.
Tesla Inc. CEO Elon Musk talks to the press as he arrives to have a look at the construction site of the new Tesla Gigafactory near Berlin, Germany, on Sept. 3, 2020.
(Maja Hitij/Getty Images) Tesla Inc. CEO Elon Musk should sell about 10 percent of his Tesla stock, according to 57.9 percent of people who voted on his Twitter poll asking users of the social media network whether he should offload the stake.
“I was prepared to accept either outcome,” Musk said, after the voting ended.
The world’s richest person wrote on Twitter on Saturday that he would offload 10 percent of his stock if users approved the proposal.
Musk has previously said he would have to exercise a large number of stock options in the next three months, which would create a big tax bill. Selling some of his stock could free up funds to pay the taxes. As of June 30, Musk’s shareholding in Tesla came to about 170.5 million shares and selling 10 percent would amount to close to $21 billion based on Friday’s closing, according to Reuters calculations. The poll garnered more than 3.5 million votes.
“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10 percent of my Tesla stock,” Musk said on Saturday, adding that he does not take cash salary or bonus “from anywhere”, and only has stock.
Senate Democrats have unveiled a proposal to tax billionaires’ stocks and other tradeable assets to help finance President Joe Biden’s social spending agenda and fill a loophole that has allowed them to defer capital gains taxes indefinitely.
Musk has criticized the proposal saying, “Eventually, they run out of other people’s money and then they come for you.”
Senate Finance Committee Chairman Ron Wyden, who floated the tax proposal, said on Saturday: “Whether or not the world’s wealthiest man pays any taxes at all shouldn’t depend on the results of a Twitter poll.”
“It’s time for the Billionaires Income Tax.”
Including stock options, Musk owns a 23 percent stake in Tesla, the world’s most valuable car company whose market value recently exceeded $1 trillion. He also owns other valuable companies including SpaceX.
His brother Kimbal Musk on Friday sold 88,500 Tesla shares, becoming the latest board member to offload a large number of Tesla stocks which hit record highs.
A week ago, Musk said on Twitter that he would sell $6 billion in Tesla stock and donate it to the United Nations’ World Food Program (WFP), provided the organization disclosed more information about how it spent its money.
Tesla bull Gary Black, portfolio manager at The Future Fund, said that Musk’s potential stock sale would lead to “1–2 days of modest selling pressure,” but said there would be solid institutional demand to snap up the shares at a discount.
Taxes on Stock Option Exercise
Musk has said he does not want to borrow against stock to pay taxes because stock value could go down.
He has an option to buy 22.86 million shares at $6.24 each, which expires on Aug. 13 next year, according to a Tesla filing. The option exercise could lead to gains of roughly $28 billion based on Tesla’s Friday closing price of $1,222.09.
In September, Musk said he is likely to pay taxes of over half the gains he would make from exercising options. Last year, he said he has been relocated from California to Texas which should lead to a cut to the total tax bill because Texas has no income tax, experts say. “(It) seems crazy to borrow that much to pay taxes, so I have to assume he’d need to liquidate a substantial amount of the shares purchased from the option exercise to pay taxes,” said Bryan Springmeyer, an attorney at San Francisco-based law firm Springmeyer Law.
By Aishwarya Nair and Hyunjoo Jin
WAITING FOR THE EV FORD 150
What is holding Canadians back from electric vehicles?
Electric Car FAQs: Can You Drive A Tesla In Snow?
Electric cars are just like gas cars — until they’re not. In this FAQ series, we’ll explore that 1% of the time that EVs are just different enough to require some explanations.
Supporters of EVs will tell you that electric cars are just like regular cars. For the most part, they’re right. You step on the pedal on the right and the car goes, you turn the wheel and the car turns, and the only real difference is what kind of fuel goes in it. If we’re being completely honest, though, that’s only mostly true. Most of the time, the only difference is what kind of fuel goes into the car, but the other differences probably need explaining in order for mainstream buyers to buy electric cars.
To provide that explanation, we’ve launched a new segment called “Electric Car FAQs” that hopes to answer those oddball questions that come up one percent of the time.
Today’s question: can you drive a Tesla in Snow?
EV FAQs: Can You Drive a Tesla in Snow?
Let’s get this out of the way up front: yes, you can drive a Tesla in snow. Heck, you can drive just about any electric car in snow, just like you can drive just about any internal combustion engine (ICE) powered car in snow — but the experience can be very different, for two reasons.
The first is that electric cars deliver all of their torque at 0 rpm. Max power now definitely makes for great fun and spirited driving, but isn’t necessarily what you want on a slick, icy road. The second is that extreme weather, heat or cold, has a negative impact on your vehicle’s efficiency — which means you’ll have a shorter driving range with a full “tank” of electrons in your battery.
A woman prepares to plug in her electric vehicle in Markham, Ont., on April 15, 2020. (Frank Gunn/The Canadian Press)
Our planet is changing. So is our journalism. This story is part of a CBC News initiative entitled Our Changing Planet to show and explain the effects of climate change and what is being done about it.
When Judy Goodwin wanted to test drive an electric car, she didn't head to a dealership. Instead, she went to a non-profit facility in north Toronto called Plug'n Drive.
"They're hard to come by," she said of electric vehicles (EVs). "My sister tried to buy one and she couldn't find one that was available."
Not only does Plug'n Drive have a showroom where people can test drive zero-emissions vehicles (ZEVs), its staff are also trained ambassadors who will answer questions about how to charge the vehicles, their range and their costs.
"We have found that over and over again, just that experience of trying it is what convinces people," said Cara Clairman, the CEO of Plug'n Drive, which seeks to accelerate the adoption of EVs in Canada.
A customer looks over a Ford Fusion parked at a lot in Colma, Calif., in this 2011 file photo. According to a 2020 study commissioned by Transport Canada, nearly two-thirds of dealerships in Canada do not have a single electric vehicle available to purchase or test drive. (David Paul Morris/Getty Images)
Whether driven by high gas prices or a sense of climate change-fuelled urgency, more Canadians are thinking about making the switch to electric vehicles (EVs). According to a recent survey by KPMG, nearly 70 per cent of Canadians planning to buy a new vehicle in the next five years are likely to buy electric.
But at the same time, electric cars made up just under four per cent of all vehicle sales last year — even as Canada set a mandatory target for all new cars and light-duty trucks sold in the country to be zero emissions by 2035.
To meet that goal, advocates say much more needs to be done.
Have questions about COP26 or climate science, policy or politics? Email ask@cbc.ca.
Tackle the supply problems
Nearly two-thirds of dealerships in Canada do not have a single electric vehicle available to purchase or test drive, according to a 2020 study commissioned by Transport Canada.
Boosting supply is essential to revving up electric car adoption by Canadians, said Merran Smith, executive director of Clean Energy Canada, a program housed at Simon Fraser University.
"They don't want to buy sight-unseen new technology, and they don't want to put their name on a list and wait for six or 12 months to get a car. When you need a car, you need it now."
Smith said the federal government needs a strong, national mandate around zero-emissions vehicles, requiring the country's car dealerships "to have the cars and to sell a certain percentage of [electric] cars."
Affordability is another key issue
While prices for zero-emission vehicles are falling, they remain more expensive than their gas counterparts — as much as $20,000 more, according to a recent TD report. The cheapest EV on the market, the 2022 Nissan LEAF, comes with a price tag of $37,498 before discounts.
More affordable electric vehicles, like the Nissan Leaf, are designed to entice entry-level buyers. (The Associated Press)
The federal government offers a rebate of up to $5,000. Smith said those incentives should continue until there is cost parity between electric and gas-powered cars, and they should also be targeted to low-income families.
"They often are the ones that can't quite afford that extra $5,000 or $10,000 that it's going to take to get the EV. But they're the ones that are going to benefit from the savings," she said.
Meanwhile, provincial rebate programs vary widely. Ontario, Alberta, Manitoba, Saskatchewan and Nunavut currently don't offer incentives to purchase new zero-emission vehicles, but the other provinces and territories have strong programs.
Another roadblock to adoption is the availability of infrastructure for charging electric cars, whether the driver is going on a road trip or lives in a crowded urban centre. According to Natural Resources Canada, there are over 6,000 publicly available charging stations across Canada, but some 12,000 gas stations.
During the recent federal election, the Liberals campaigned on a platform that included spending an additional $700 million to create 50,000 new electric- and hydrogen-charging stations. If the government makes good on that promise, it would give Canada's infrastructure a big boost.
Advocates say one roadblock to the wider adoption of electric vehicles is the availability of charging infrastructure. (Nacho Doce/Reuters)
Companies are also tackling the infrastructure issue. General Motors recently announced plans to install 4,000 charging stations in Canada as part of its plan to invest more heavily in electric vehicles.
"We've got Canadian companies champing at the bit," said Smith. "We're going to see more and more of this in the energy transition; new jobs, new opportunities for businesses as we shift off of fossil fuels onto an electric system."
Ford Motor Co. has announced a cash tender offer to repurchase up to $5 billion of the company’s high-yield debt in the hopes of rebalancing its budget after needing to borrow so much during the back-to-back-to-back production shutdowns incurred since the start of 2020. The automaker is retiring as much of the $8 billion in bonds the company issued at the start the coronavirus pandemic as it can and will be doing the same for some older bonds issued at similarly high rates (over 8 percent annually).
However this will be used to make room for environmental, social and corporate governance (ESG) initiatives and establish a “sustainable financing framework” the automaker said would be a first for North America. Ford clearly believes social governance investments will become increasingly routine and is attempting to showcase itself as one of the kinder, more forward thinking, and environmentally responsible multinational industrial concerns. Sort of like a fully armed M1 Abrams tank painted with peace symbols and hippie daises.
“Winning businesses are financially healthy and lead in sustainability – it’s not a choice, they rely on each other,” said Ford CFO John Lawler. “We’re again putting our money where our mouth is, prioritizing and allocating capital to environmental and social initiatives that are good for people, good for the planet, and good for Ford.”
ESG investing is growing in popularity, with financial backers increasingly prioritizing strategies that take into account a company’s environmental, social, and governance factors. However critics have pointed out that ESG strategies are often more about the perception of doing good than any genuine altruism and run the risk of setting up corporations as ethical arbitrators. It’s also encouraging investors to pour real money into a corporation’s perceived moral values, rather than focusing on what it’s bringing to the table in terms of legitimate business. This is one reason we’ve seen so many EV startups awash with cash long before they even have a working prototype.
Social Capital founder and CEO Chamath Palihapitiya has called the ESG trend fraudulent, suggesting whatever merit it previously had has been undermined by the way in which environmental jargon has been weaponized to benefit the largest corporations in the world. The venture capitalist/engineer now believes people should be weary of being scammed by business entities and government agencies championing ESG investments because they’re being used to game the system and give certain players an unfair advantage. At their worst, they can even encourage businesses to become overt political actors.
While your author is inclined to agree, let’s test those claims against Blue Oval’s plan to rejigger Ford Credit into a more “inclusive, equitable, and sustainable” business model.
From Ford:
Today’s announcement was made on the fifth anniversary of the Paris Climate Agreement, as Ford executives joined world leaders, environmental advocates and other forward-looking companies at the United Nations Climate Change Conference (COP26) in Glasgow, Scotland.
Among other expected benefits, initiatives outlined in Ford’s sustainable financing framework are intended to help the company become carbon neutral no later than 2050, in line with its commitment to the Paris Agreement. Ford was one of the first full-line U.S. automakers to pledge to reduce greenhouse gas emissions from its vehicles, operations and supply chain in alignment with goals of the accord. This pledge is backed by science-based interim targets the automaker intends to achieve by 2035.
The potential positive environmental and social influence of projects described in Ford’s sustainable financing framework earned an “advanced” rating – the highest possible – from Vigeo Eiris. Vigeo Eiris, an arm of Moody’s Corp., makes independent assessments of organizations’ goals and performance against environmental, social and governance matters.
Guided by aggressive environmental and social goals, a significant portion of related financing will go toward accelerating Ford’s leadership in electric vehicles. Objectives include expanding EV technology and charging infrastructure to remove obstacles to adoption and improve the customer experience, and EV and battery manufacturing to reduce emissions.
The automaker then goes onto explain how new green bonds should enable Ford Credit to extend financing to customers with lower credit scores. Everything else was vague promises about how it would be putting some of the money back into electric vehicles, cleaner manufacturing protocols, community revitalization projects, and “advancing economic opportunity and equity for underrepresented and/or disadvantaged populations” via programs that help scale up Ford’s dealer diversity networks. That pertains specifically to the advancement of “businesses owned by minorities, women, military veterans and disabled people, and for women-focused community ventures and social enterprises that promote better health, develop critical skills, and support child and maternal health, education and disability support services.”
It’s all incredibly broad. But Ford will also be creating a new “sustainable financing committee” to assure that the funded projects comply with Blue Oval’s corporate social responsibility plan and otherwise meet eligibility criteria. It will be comprised of senior representatives from the automaker’s treasury, sustainability, corporate finance, investor relations, Ford Credit and legal teams.
Considering the report we published outlining the massive amount of automotive debt currently being carried by Americans and the increasingly predatory nature of lenders, Ford creating a kinder, gentler credit arm should be a blessing. But its getting difficult to take any ESG chatter seriously anymore. My guess is that Blue Oval simply wants to upgrade its credit rating after it lost its investment-grade status in March 2020 and thinks ESG can help it avoid future scrutiny.
NASA/Reuters
