CFC CEO Andrew Don shared his perspective on the state of the U.S. economy, markets as well as the continued increase in investor interest in environmental, social and governance (ESG) factors at the Iowa Association of Electric Cooperatives Managers’ and Board Presidents’ Summer Conference on July 16.
Don shared that the U.S. economy is continuing to show signs of progress since the peak of the pandemic last year, though U.S. nonfarm payrolls are not quite back to pre-pandemic levels and elevated inflation levels are creating volatility and concern.
ESG bonds are becoming more frequent issuances as part of a broader trend in ESG and sustainable investments, Don explained. In fact, he noted total U.S. assets under professional management using sustainable investing strategies grew to $17.1 trillion in 2020, representing one third of assets under management.
CFC’s own numerous ESG efforts include CFC’s first sustainability bond issuance in October 2020, which helped support rural broadband and renewable energy projects, its inaugural Corporate Citizenship Report in 2020 and contributing an estimated $175 million over the past 20 years to the U.S. Department of Agriculture’s Rural Economic Development Loan and Grant Program—an initiative that provides funding to support economic development in rural America.
Don closed his remarks by highlighting how electric cooperatives are well-positioned to address the current economic and investor environment. He focused on five areas of strength: their unique relationship with member-owners; their outstanding track record of financial and operational excellence; strong credit ratings and reputation; unparalleled access to global capital markets; and a history of innovation and creative problem-solving.