PLANADVISER - November/December 2022 - 27

and co-founder of Vert Asset Management in Sausalito, California.
The Environmental Protection Agency calls these
Scope 2 emissions-those created in producing the energy
that the firm buys from a utility-and Scope 3 emissions,
which result from commuting and business travel.
A carbon audit will uncover the sources of a firm's emissions,
and a number of online carbon audit tools are available
(see sidebar).
Cindy Bohlen, research analyst at Riverwater Partners, a
socially responsible investment advisory firm in Milwaukee,
says Riverwater conducted its first carbon audit in 2021. The
firm has been tracking its emissions closely this year, and in
January 2023 it will set targets to cut its carbon emissions,
using this year's levels as a baseline.
She says Riverwater's carbon footprint for last year was
the equivalent of 25 million metric tons of carbon, but, she
notes, that figure also reflects the influence of COVID-19
when there was less business travel and more working from
home. Of that total, 13 metric tons was for office energy use,
not including computers, which added 2 tons.
" We're a growing company, so maybe we won't be able
to absolutely reduce it, but our hope would be to reduce it
as a percentage of our revenue, or use some other type of
metric, " Bohlen says.
Her firm used Terrapass for its audit; that company also
lets businesses buy carbon offsets, which help fund projects
that achieve carbon neutrality. Riverwater spent $400 in
carbon credits to achieve zero net carbon emissions.
Buildings Emit Lots of Carbon
When RBC Wealth Management established corporate
headquarters for its wealth management division in a new,
310,000-square-foot space in Minneapolis this year, sustainability
was on its mind. Jon Fahning, director of U.S. corporate
real estate at RBC, says the company is pursuing Gold
LEED [Leadership in Energy and Environmental Design] certification
for the building. To earn certification, a building must
meet certain standards that address use of factors such as
carbon, energy and water, and indoor environmental quality.
The greener RBC Gateway building is already showing
results in cutting reliance on natural resources. Between this
spring, when RBC moved in, and mid-June, the company's
data show its energy consumption fell by 10%, and potable
water consumption decreased by 42%, among other savings,
compared with traditional construction.
According to a 2020 report from the Global Alliance for
Buildings and Construction, part of the United Nations Environment
Programme, buildings contribute 38% of global
carbon emissions. For advisers, however, their building's
emissions are one of the most difficult targets, as their firm
often rents its space, Vert's Adams says.
" It's a classic problem in real estate: the owner-tenant
dynamic, where the owner owns the building and is not
necessarily incentivized to make it greener, because all
those benefits flow to the tenants, " he says.
Proactive advisers may have some success with landlords.
Gerald Goldberg, CEO and co-founder of GYL Finanplanadviser.com
November-December 2022 | 27
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PLANADVISER - November/December 2022

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