Financing Carbon Transition and the Business Officer’s Role in Balancing Financial and Environmental Sustainability

Alice Turbiville - Swarthmore College
Dennis Gephardt - Moody's Ratings

College financial officers have an increasing role in balancing the competing interests of funding energy efficiency and greenhouse gas emissions reduction while also fostering financial sustainability. This involves strategic financial planning, investment management, and stakeholder engagement. The financial officer must understand the long-term financial implications of investing in energy efficiency and emissions reduction initiatives. In this presentation, an officer of Swarthmore College will present how the college found equilibrium and is funding its sustainability goals. This will include how stakeholders were involved and consensus achieved for various planning initiatives, including the development of an internal carbon fee within the operating budget that funds energy efficiency improvements and pilot sustainability programs, as well as the College’s major capital investments in a Geothermal exchange system as part of Swarthmore’s To Zero by Thirty-Five program. The college will also be using tax credits from the Inflation Reduction Act for financing its energy infrastructure. A rating agency analyst will address the various ways colleges are funding energy savings and carbon transition projects and the impact of those decisions on credit quality.

Learning Objectives

1. Outline campus-specific approaches to funding carbon transition investment.
2. Identify the competing interests of various stakeholders and how financial tools can assist a campus in achieving consensus.
3. Discuss how infrastructure financing can impact the broader credit profile of a college.

CPE Available

• 1 Credit: Specialized Knowledge