Monthly Archives: March 2022

They're two of the world's largest countries by land area, with harsh winter landscapes bordered by three oceans. They're rich in oil, potash, uranium, and nickel. But only one has the delicious comfort food poutine, while the other is stuck with Vladimir Poutine (as his name is spelled in French, Qubcois or otherwise).

Canada, the US' resource-rich neighbor, has turned into a favorite destination for countries and companies around the world looking to replace Russian resources.

Russia's sanction pains have turned into maple leaf gains in a matter of weeks due to the two countries' strikingly similar commodity baskets. Before invading Ukraine, Russia provided about 10% of the global oil supply. Canada has the fourth-largest oil reserves in the world. Roughly 30% of the global potash supply has been removed from markets because Russian and Belarus producers can't export. Canada has the world's largest potash reserves, at 1.1 billion tonnes.

The demand flowing in for Canadian resources has sent the S&P/TSX Index, Canada's benchmark, up 3.5% this year, while the S&P 500 has struggled against a backdrop of war and inflation, falling 4.6%. Canadian producers are rushing to get supplies out as fast as a sprinting moose (they're frighteningly quick):

Cash for Gas: "You have an economy that's basically at full employment ... and you have the backing of the commodity-based economy, so you'll have cash flows coming in," Earl Davis, the head of fixed income at the Bank of Montreal, told the Financial Post.

Link:

Canada's Vast Resources Have Made It the World's Russia Alternative - The Motley Fool

Increasing aluminum can recycling rate to 90% would generate $6.6B for the U.S. economy, add more than 100,000 jobs, keep 1.3M tons of aluminum out of landfills and reduce annual greenhouse gas emissions by 12.1M metric tons of CO2e

WESTMINSTER, Colo. and ANN ARBOR, Mich., March 30, 2022 /PRNewswire/ --Today, Ball Corporation (NYSE: BLL) and Resource Recycling Systems (RRS), a sustainable material and resource consulting firm, released a new nationwide study showing the economic and environmental benefits of improving the aluminum can recycling rate in the United States to 90% an increase from the current rate of 38%. Infinitely recyclable and economically valuable, aluminum is among the most sustainable beverage packaging materials, and when recycled, uses 92% less energy than virgin material and supports increased supply of domestic recycled metal.

In 2021, Ball Corporation released its vision for increased circularity across the industry in the Towards a Perfect Circle Report (2021). The report details a vision for the industry to achieve a 90% global recycling rate of aluminum. The new study from RRS and Ball Corporation demonstrates the environmental and economic impact of achieving this goal in the U.S.

The new study entitled "Recycling Aluminum Cans Is Good Business" indicates that a substantial improvement of the U.S. aluminum recycling rate would provide the following benefits:

"There is no question the market for more recycled aluminum is there, and so is the potential for huge energy savings and job creation," said John Hayes, chairman of Ball Corporation. "That's why we're advocating for smart recycling policies at the state and federal level that can help the U.S. reduce our dependence on imported materials, strengthen our domestic supply chain and make these benefits a reality."

"The benefits of increasing aluminum recycling rates in this country are very clear," said Marisa Adler, Senior Consultant, RRS. "Now it's up to leaders at the state and federal level to develop a policy roadmap for making the most of this opportunity."

The "Recycling Aluminum Cans Is Good Business" analysis, was compiled using 2021 data sourced from the Environmental Protection Agency (EPA), Aluminum Association and Ball Corporation. The analysis also demonstrates how improved recycling enhances our nation's domestic supply chain of aluminum and decreases our reliance on primary aluminum imports. The study includes factsheets and data for all 50 states, in addition to a national snapshot.

RRS used state recycling rate data from the 50 States of Recycling Report (2021) to determine baselines. Notably, while the Aluminum Association has reported a 45.2% consumer recycling rate for aluminum cans, the RRS analysis uses 38% as the national baseline to reflect the percentage of aluminum that actually makes it to remelting facilities, after material losses that occur during collection and sorting. Unfortunately, collection and recycling are not synonymous. As detailed in Ball Corporation's Towards a Perfect Circle Report (2021), boosting collection rates exponentially increases the amount of recycled material that is kept in the loop over the long term.

View and download the national and state-specific fact sheets here.

About RRSFounded in 1986 and headquartered in Ann Arbor, Michigan, Resource Recycling Systems (RRS) is a sustainability and recycling consulting firm that strives to create a world where resources are managed to maximize economic and social benefit while minimizing environmental harm. The firm has industry professionals, engineers, economists, technical analysts, and communication specialists who share this vision and possess core strengths in materials and recovery, life cycle management, applied sustainable design, and collaborative action development. http://www.recycle.com

About Ball CorporationBall Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products for customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 24,300 people worldwide and reported 2021 net sales of $13.8 billion. For more information, visit http://www.ball.com, or connect with us on Facebook or Twitter.

Forward-Looking StatementsThis release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," "believes," and similar expressions typically identify forward-looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at http://www.sec.gov. Additional factors that might affect: a) our packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather; footprint adjustments and other manufacturing changes, including the startup of new facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on our supply chain and our ability to operate in Russia and the EMEA region generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and shelter-in-place orders in any country or jurisdiction affecting goods produced by us or in our supply chain, including imported raw materials; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the Company as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, ESG reporting, competition, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of the Company's defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies, including policies, orders, and actions related to COVID-19; reduced cash flow; interest rates affecting our debt; and successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on our operating results and business generally.

SOURCE Ball Corporation

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New Analysis Shows Significant Economic and Environmental Benefits of Boosting Aluminum Can Recycling Rate in US - PR Newswire

As the Furey government prepares for a crucial 2022-2023 budget, it faces a landscape thats changed significantly from last year, given the rising price of oil. This development will boost the provinces revenues, but based on past experience, the government should not seek to balance the budget based solely on royalties. Rather, spending reductions is the only way to put Newfoundland and Labrador on a sustainable fiscal path.

Last fall, Finance Minster Siobhan Coady reported the provincial deficit, which has been among the largest in Canada, stood at $595 million for 2021-2022, down from a peak of $1.5 billion the prior year. But the province still faces the most challenging fiscal situation in Canada, with ongoing deficits and the largest debt of any province (as a share of the economy). The reduced deficit is due in part to the rebound in oil and gas prices, which bring the province revenue through royalties and income taxes.

While the oil and gas sector remains a crucial part of the provincial economy, its revenues are not a sustainable method to balance the budget. Oil and gas revenues are volatile, fluctuating significantly from year to year, making it difficult to align revenues and spending. Further, its not sustainable to fund ongoing operating expenses with onetime revenues from oil and gas. Indeed, relying on oil and gas revenues to fund operating expenses is a key reason for the boom-and-bust nature of provincial finances.

The Furey government cannot control oil and gas revenues, but it can control provincial spending. Despite having the most difficult fiscal position in Canada, the province has chosen to increase program spending in nine of the last 10 years, from $13,149 per person to $15,953 per person (adjusted for inflation). In its upcoming budget, the government should change course and reduce provincial program spending to create a more sustainable future.

The Canadian evidence on successful fiscal turnarounds is clear. Take, for example, the province of Saskatchewan. In the early 1990s, that province faced a deficit equivalent to more than five per cent of the economy, with debt rising at an unsustainable pace not unlike Newfoundland and Labradors present situation. Saskatchewans NDP government of the day tackled spending, reducing per-person spending in four consecutive years.

The result? The province went from a deficit of more than $1.5 billion to a string of surpluses, which not only balanced the budget but allowed the province to reduce its debt load and later reduce taxes. With Newfoundland and Labrador currently facing a deficit of almost $600 million, an uncertain situation for 2022 and beyond, and net debt (which has more than doubled in the last 10 years), these lessons are worth heeding.

Minister Coady recently said this budget will set the direction for a strong, smart, self-sufficient and sustainable province. While the fiscal and economic challenges before Newfoundland and Labrador are daunting, self-sufficiency and sustainability are indeed possible. To achieve that worthy goal, the province must reduce spending and balance the budget.

Alex Whalen and Jake Fuss are analysts at the Fraser Institute.

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OPINION: Spending reductionsnot resource revenueskey to N.L.'s fiscal sustainability - Saltwire

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Since Russia invaded Ukraine on February 24, commodity prices have risen sharply as markets digest potential supply impacts from sanctions on Russia - one of the worlds largest exporters of commodities. The situation threatens to exacerbate record inflation already gripping global economies. Todays note highlights recent events across commodity markets that are magnifying inflationary pressures and how natural resources could be an attractive investment in the current environment.

While stronger demand has fueled a sustained commodity price rally since the doldrums of the pandemic in 2020, the news of Russias invasion of Ukraine sent commodity prices soaring to new highs. The most pronounced impacts have been seen across energy, metals, and agricultural commodity markets, where Russia and/or Ukraine are significant global exporters. Russia is one of the worlds top crude oil exporters and the largest exporter of natural gas. Russia is also the largest wheat exporter while Ukraine is the fifth largest, and combined, they account for nearly 30% of the global wheat export market. Furthermore, Russia is also among the largest producers of aluminum, nickel, palladium, cobalt and other metals and raw materials critical for manufacturing.

On March 1, WTI crude oil closed above $100 per barrel (bbl) for the first time since 2014, surging as high as $130/bbl intraday on March 7. The same day, US natural gas prices at Henry Hub rose above $5 per million British thermal unit, while Dutch gas prices at the TTF hub, the leading European benchmark, closed at the highest level ever recorded. Wheat futures traded limit up (i.e., at the maximum increase allowed on a single trading day) five consecutive days during the first week of March and surged to $14.25 per bushel on March 7, their highest level since 2008. On March 8, nickel prices jumped and briefly surpassed $100,000 per metric ton on the London Metal Exchange (LME), forcing the LME to suspend nickel trading. While commodities that spiked sharply, including oil, wheat, and nickel, have come down from record highs, commodities broadly remain near multi-year highs.

Broad Commodities Performance (Author)

Commodities YTD Price Appreciation (Author)

Supply shocks stemming from the Russia-Ukraine conflict come during a time when inflation across energy and food is already running rampant. As reported by the US Bureau of Labor Statistics, inflation rose to 7.9% in February on an annual basis, with food and energy price increases contributing to the highest CPI reading in 40 years. Moreover, the Food and Agriculture Organization of the United Nations reported global food prices also rose to an all-time high in February. The surge across agricultural commodities could further aggravate global food inflation as the effects from the disruptions spill over to food supply chains. Meanwhile energy prices may continue to see upward pressure, as the Russia-Ukraine conflict has triggered what could be the largest energy supply crisis in decades, according to the International Energy Agency. Historically, commodities have served as a viable hedge against inflation. This commodity outperformance has also corresponded with periods of positive economic growth coinciding with the reopening of the global economy.

Investors that are looking to gain exposure to rising commodity prices, either as a hedge against inflation or for capital appreciation, may find it cumbersome to invest in commodity futures. Trading contracts could be complex for many investors, and owning individual commodity futures makes it difficult to diversify exposure. An index-based approach could provide exposure to multiple commodities via a more familiar product structure like an exchange-traded fund. Equity-based natural resource ETFs offers exposure to commodities through companies directly involved in natural resources and raw materials. Relative to an equity-based approach, an ETF based on commodity futures may have more volatility and can be negatively impacted by the need to roll into new contracts as front-month contracts near expiration.

The VanEck Natural Resources Index (RVEIT), which is calculated by S-Network Global Indexes, includes companies involved in the production and distribution of commodities and commodity-related products and services in the following sectors: Agriculture, Alternatives (Water & Alternative Energy), Base and Industrial Metals, Energy, Forest Products, and Precious Metals. Strong demand for commodities and natural resources has contributed to RVEITs outperformance relative to the broader market since March 2020, during a time when inflation has also continued to edge higher. While record inflationary pressure and rising interest rates have pressured broad equity indexes in recent months, RVEIT has continued its upward trend.

RVEIT Outperformed Through The Economic Recovery (Author)

With continued uncertainty ahead and no clear signs of inflationary pressures easing soon, a barbell approach could be used to incorporate a natural resource allocation into a broad equity portfolio. The chart below provides representative examples of combining natural resources, represented by RVEIT, with a broad equity allocation, represented by the S&P 500, and how sector exposures would be modified. For example, a 25% allocation to RVEIT could moderate exposure to heavily weighted sectors like tech that could see continued pressure from rising interest rates, while increasing exposure to commodity-related companies within the industrial, consumer staples, materials, and energy sectors. These sectors typically have more inelastic demand, do better during rising rate environments, and could benefit from inflation given the pass-through nature of their businesses.

Barbell Approach With RVEIT And S&P 500 (Author)

Given the ongoing global demand recovery for commodities, supply shocks stemming from the impacts of the Russia-Ukraine conflict are likely to exacerbate inflationary pressures. RVEIT offers investors access to global growth and may serve as a potential hedge against inflation.

The VanEck Natural Resources Index (RVEIT), which is calculated by S-Network Global Indexes, is the underlying index for the VanEck Natural Resources ETF (HAP).

Disclosure: Alerian 2022. All rights reserved. This material is reproduced with the prior consent of Alerian. It is provided as general information only and should not be taken as investment advice. Employees of Alerian are prohibited from owning individual MLPs. For more information on Alerian and to see our full disclaimer, visit Disclaimers | Alerian

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Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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Natural Resources: Rich With Inflation-Hedging Properties - Seeking Alpha

Register for the World Standards Week Event on May 18, 2022

NEW YORK, March 30, 2022 /PRNewswire/ -- Digital transformation, accelerated by the pandemic, has rewritten the way companies and organizations are doing business. But what are the implications for the workforce and the workplace? Join leading workforce experts to learn about building a future-ready workforce and peer into the workplace of tomorrow at the World Standards Week (WSW) spring conference, Technology and the Workforce (view draft agenda).

(PRNewsfoto/Workcred)

Hosted by the American National Standards Institute (ANSI) in partnership with its affiliate Workcred, the future-focused conference will take place on May 18, 2022, at the Ronald Reagan Building and International Trade Center in Washington, DC. A virtual attendance option is also available.

REGISTER HERE.

In opening remarks, the U.S. Secretary of Commerce, Gina Raimondo, has been invited to share the Administration's vision for workforce development as a key driver of U.S. competitiveness, and to highlight opportunities for public-private partnerships that will help build an equitable, skilled workforce for the digital, data-based economy. Keynote speaker Van Ton-Quinlivan, CEO of Futuro Health, will share her visionary perspective on the future world of work and what U.S. companies and organizations need to do to compete.

In three fire-side chat-style panel discussions, workforce experts from industry, academia, and the standardization community will take a deep dive into major issues impacting the workforce, workplace, and standardization community, including:

Innovation and Workforce Transformation Building a Future-Ready Workforce

This panel will explore how the increasing pace of technology innovation is reshaping industries and driving demand for new skills. Panelists will discuss changing skills needs and the reskilling and upskilling needs of the workforce.

Moderator: Jane Oates, President, WorkingNation

Panelists:

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Earl Buford, President, CAEL

Todd Greene, Executive Director, WorkRise

Kerri Nelson, Director of Policy and Workforce Research, Society for Human Resource Management (SHRM)

Rethinking the Way We Work a Look at the Workplace of the Future

Has the pandemic toppled the traditional workplace model? Envisioning the future world of work, panelists will explore how companies are successfully embracing new ways of hiring, training, and mentoring to thrive and innovate in a remote/hybrid world.

Moderator: Janet Salm, Managing Director of Research, Strada Education Network

Panelists:

Elise Freedman, Senior Client Partner, Workforce Transformation Practice Leader, Korn Ferry

Diana Gehlhaus, Research Fellow, Center for Security and Emerging Technology, Georgetown University

Standards Community Into the Future

This panel will explore how members of the standardization community are responding to opportunities and challenges, and planning for the future. Panelists will discuss how innovations in standards development, such as SMART standards and greater use of virtual and collaborative tools, are impacting the standards workforce. They will also discuss diversity and inclusion initiatives, as well as creative approaches to growing the next generation of standards professionals.

Moderator: Mary Saunders, VP of Government Relations, ANSI

Panelists:

Muhammad Ali, Senior Standards Strategy and Policy Lead, HP

Alyson Fick, Manager, Standards Development, ASTM International

Veronica Lancaster, Vice President, Standards Programs, Consumer Technology Association

About World Standards Week

World Standards Week is an annual gathering that brings together ANSI members and private- and public-sector stakeholders from across the standards and conformity assessment communities to engage on priority issues and celebrate standardization achievements.

For more information, and to register for WSW events, visit http://www.ansi.org/wsweek.

About ANSI

The American National Standards Institute (ANSI) is a private non-profit organization whose mission is to enhance both the global competitiveness of U.S. business and the U.S. quality of life by promoting and facilitating voluntary consensus standards and conformity assessment systems, and safeguarding their integrity. Its membership is comprised of businesses, professional societies and trade associations, standards developers, government agencies, and consumer and labor organizations.

The Institute represents and serves the diverse interests of more than 270,000 companies and organizations and 30 million professionals worldwide. ANSI is the official U.S. representative to the International Organization for Standardization (ISO) and, via the U.S. National Committee, the International Electrotechnical Commission (IEC). For more information, visit http://www.ansi.org.

About Workcred

Formed in 2014, Workcred is an affiliate of the American National Standards Institute (ANSI). Its mission is to strengthen workforce quality by improving the credentialing system, ensuring its ongoing relevance, and preparing employers, workers, educators, and governments to use it effectively. Workcred's vision is a labor market that relies on the relevance, quality, and value of workforce credentials for opportunities, growth, and development.

(PRNewsfoto/American National Standards Ins)

Cision

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SOURCE Workcred

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Technology and the Workforce: ANSI and Workcred Announce Future-Focused Conference - Yahoo Finance

ESG appears to be taking a back seat, as the latest IEA report reveals that, in 2021, global energy-related carbon emissions increased by 6%, reaching 36.3 billion tons. This was the largest absolute increase in carbon emissions ever recorded. This can be attributed to many parts of the world pursuing a dirty recovery, using fossil fuels to power a Covid-19 rebound. As the Ukraine crisis looms large, the risk of ESG slipping down the agenda once again remains real. As the worlds youth recommenced protests against climate change on March 25, it is clear that more needs to be done to avert dangerous climate change.

The slogan, there is no planet B scrawled across placards has become a common sight at environmental protests in recent years. Against this backdrop, SpaceX CEO Elon Musks quest for Mars could be viewed as tone-deaf. The billionaire has been criticized for taking mass consumption to a planetary level, in his bid for humans to become a spacefaring civilization. However, this reading has generalized the emerging space economy, presenting innovation in space and ESG as a zero-sum game.

In many ways, the space and the environmental aspects of ESG have a shared history. The space age ushered in a new era for environmentalism with the 1972 Big Blue Marble image depicting the Earth from space, emphasizing the finite nature of the planet and the need to conserve its resources.

In addition, space-based infrastructure embodies many of the concepts required for a sustainable future, with a large emphasis on resource self-sufficiency. These learnings have given rise to numerous technological developments. Solar panel technology has been one of the largest beneficiaries, with NASAs Advanced Energy division partnering with private firms to catalyze innovation in renewable energy.

A growing number of satellite companies specializing in high-resolution environmental monitoring could also see the space economy and ESG become the unlikeliest of friends. The company, Planet, currently operates a constellation of over 200 low earth orbit (LEO) satellites. The constellation harvest 15 terabytes of geospatial data a day and can be used to monitor deforestation, improve disaster response, and map emissions. The company also partnered with Human Rights Watch in 2017 and provides satellite imagery to expose human rights abuses.

Other companies such as GHGSat and Descartes Labs are also working to use increasingly granular satellite data to monitor point source emissions and provide carbon accounting. In this respect, the emerging space economy provides a means of adding empirical data, increasing businesses and governments accountability for measuring their environmental impact and reducing their emissions. This rigorous empiricism will be of paramount importance for cutting through the hazy and confusing landscape of ESG disclosure.

Admittedly, space activity has generated its own environmental crises, with the rapid accumulation of space debris posing as its own super-wicked problem. However, several companies have moved quickly to address the problem. Astroscale was the first to successfully demonstrate how its dual satellite mission could be used to collect space debris in August 2021. In addition, Elon Musks $100 million pledge towards a carbon capture contest is evidence of another way in which space economy and ESG can overlap.

Although an emerging industry, space companies are showing themselves to be agile in the face of challenges and could be valuable allies in the fight against climate change. The matter of ESG and the space economy is not always a zero-sum game and if we want to turn the tide against climate change, engagement with the latter will be required.

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Space economy and ESG is not a zero-sum game - Verdict