Visualized: The Power of a Sustainable Investment Dollar
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Visualized: The Power of a Sustainable Investment Dollar

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Sustainable Investment

Visualizing the Power of a Sustainable Investment Dollar

Sustainable investments are booming.

Between January and November 2020 alone, investments in sustainable ETF and mutual funds grew 96%. The UN Principles of Responsible Investment now has over 3,000 signatories representing over $100 trillion in assets. The U.S. Commodity Futures Trading Commission established a Climate Risk Unit to analyze climate risk across derivative markets, and as of March 2021, new sustainability disclosures have come into effect in Europe.

But how do we know if sustainable investments have made a difference?

To answer this question, the above infographic from MSCI examines the effect of a sustainable investment dollar by looking at real-world examples.

A Sustainable vs. Unsustainable Dollar

To start, investing legend Benjamin Graham has compared the stock market to a “voting machine.” Just as consumers vote with their purchasing decisions, investors vote with their investment dollars. Especially in the short term, as more dollars flow to sustainable companies, this builds their exposure and access to capital.

In the long term, meanwhile, the market can be compared to a weighing machine. The market recognizes companies with profitable business models that improve their intrinsic value over time. Ultimately, this allows sustainable companies to expand and continue operating.

Given the rising momentum in both green assets and climate targets, here is how investment dollars have influenced and driven change across three industries.

1. Clean Energy vs. Fossil Fuel

Over the last several years, the energy sector has been associated with many of the problems causing climate change. For this reason, many investors are seeking out greener energy alternatives. But how does moving investment dollars from an ESG laggard to an ESG leader support the environment and society?

First, here is a brief explainer of ESG laggards and leaders:

  • ESG laggards: companies with the weakest environmental, social, and governance (ESG) performance in their sector.
  • ESG leaders: companies with the strongest environmental, social, and governance (ESG) performance in their sector.
Industry laggard: U.S. oil & gas companyIndustry leader: U.S. utilities company
Scale of carbon-intensive business lines equal to 73% of its operation47% lower CO2 emissions than the industry average
This is the equivalent of adding 26 million cars on the road annuallyThis is the equivalent of removing 9.9 million cars off the road annually
1 of 20 oil and gas companies are responsible for contributing to one third of GHG emissions since 1965Uses 3X as many renewable sources than industry average
3X fewer jobs are created vs. energy efficient sector, resulting in lower productivityThis is roughly the same as saving over 9 million pounds of coal burned
MSCI ESG Rating: CCCMSCI ESG Rating: AAA

Source: MSCI ESG Research

Based on the above example, investors have the ability to finance powerful green initiatives that reduce emissions by almost half, relative to their peers.

2. Safe vs. Unsafe Working Conditions

Weak safety protocols are a key sustainability issue for the industrial sector. Here’s how two companies compare:

Industry laggard: South African mining companyIndustry leader: U.S. mining company
11 fatalities in 2019Zero fatalities in 2019
Faced lawsuits from miners surrounding lung diseases contracted from dust exposure in gold mines
Settlement cost: $350 million
Board-level oversight monitors health and safety performance
Lags behind peers in high incident ratesLeads peers in low incident rates
Lags behind peers in setting incident reduction targetsLeads industry in lost time incident rate & total recordable injury rate
MSCI ESG Rating: CCCMSCI ESG Rating: A

Source: MSCI ESG Research

Despite the risks involved in the sector, investors can choose to support companies that take greater precautions to protect their workers.

3. Building Trust vs. Losing Trust

Over the last several years, the financial sector has faced increased scrutiny over fraudulent activities. Moving investment dollars from an ESG laggard to ESG leader may make a difference:

Industry laggard: U.S. bankIndustry leader: Dutch bank
$3 billion settlement in creating fictitious accounts to meet aggressive sales targetsSustainable finance portfolio valued at over $20 billion
Drop in top-tier bank ratings13% annual increase in climate finance
Board effectiveness questionedIncludes over 60 green loans, mobilizing environmentally friendly projects
Resignation of board membersOver 55% of board is female
MSCI ESG Rating: CCCMSCI ESG Rating: A

Source: MSCI ESG Research

From board diversity to green loans, a sustainable investment dollar supports companies that are actively advancing society and the environment.

Sustainable Investment: The Time to Act

Recently, investor dollars and shareholder activism have been closely linked.

Between 2018 and 2020, large institutional investors filed 217 shareholder proposals on climate change alone, putting increased pressure on companies. Meanwhile, 270 proposals were filed on corporate political activity and 228 on fair labor and equal employment opportunity over the same timeframe. Across all ESG proposals, $2 trillion in assets were pushing for more equitable corporate action.

Through the power of a dollar, investors can send a clear signal to companies: the time for sustainable investing is now.

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The World’s 25 Largest Lakes, Side by Side

This unique map graphic uses the Great Lakes region as a point of comparison for the top 25 largest lakes in the world.

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The World’s 25 Largest Lakes, Side by Side

In many parts of the world, you don’t have to look very far to find a lake.

According to satellite data, there are roughly 100 million lakes larger than one hectare (2.47 acres) to be found globally. The largest lakes, which rival the size of entire nations, are more of a rarity.

One might expect the world’s largest lakes to be very alike, but from depth to saline content, their properties can be quite different. As well, the ranking of the world’s largest lakes is far from static, as human activity can turn a massive body of water into a desert within a single generation.

Today’s graphic – created using the fantastic online tool, Slap It On A Map! – uses the Great Lakes region as a point of comparison for the largest 25 lakes, by area. This is particularly useful in comparing the scale of lakes that are located in disparate parts of the globe.

The Greatest Lakes

The largest lake in the world by a long shot is the Caspian Sea – a name that hints at a past when it was contiguous with the ocean around 11 million years ago. This massive saline lake, which is nearly the same size as Japan, borders five countries: Kazakhstan, Russia, Turkmenistan, Azerbaijan, and Iran. An estimated 48 billion barrels of oil lay beneath the surface of the basin.

The five Great Lakes, which run along the Canada–U.S. border, form one of the largest collections of fresh water on Earth. This interconnected series of lakes represents around 20% of the world’s fresh water and the region supports over 100 million people, roughly equal to one-third of the Canada–U.S. population.

Amazingly, a single lake holds as much fresh water as all the Great Lakes combined – Lake Baikal. This rift lake in Siberia has a maximum depth of 5,371ft (1,637m). For comparison, the largest of the Great Lakes (Lake Superior) is only 25% as deep, with a maximum depth of 1,333ft (406m). Lake Baikal is unique in a number of other ways too. It is the world’s oldest, coldest lake, and around 80% of its animal species are endemic (not found anywhere else).

Here’s a full run-down of the top 25 lakes by area:

RankLake NameSurface AreaTypeCountries on shoreline
1Caspian Sea143,000 sq mi
(371,000km²)
Saline🇰🇿 Kazakhstan
🇷🇺 Russia
🇹🇲 Turkmenistan
🇦🇿 Azerbaijan
🇮🇷 Iran
2Superior31,700 sq mi
(82,100km²)
Freshwater🇨🇦 Canada
🇺🇸 U.S.
3Victoria26,590 sq mi
(68,870km²)
Freshwater🇺🇬 Uganda
🇰🇪 Kenya
🇹🇿 Tanzania
4Huron23,000 sq mi
(59,600km²)
Freshwater🇨🇦 Canada
🇺🇸 U.S.
5Michigan22,000 sq mi
(58,000km²)
Freshwater🇺🇸 U.S.
6Tanganyika12,600 sq mi
(32,600km²)
Freshwater🇧🇮 Burundi
🇹🇿 Tanzania
🇿🇲 Zambia
🇨🇩 D.R.C.
7Baikal12,200 sq mi
(31,500km²)
Freshwater🇷🇺 Russia
8Great Bear Lake12,000 sq mi
(31,000km²)
Freshwater🇨🇦 Canada
9Malawi11,400 sq mi
(29,500km²)
Freshwater🇲🇼 Malawi
🇲🇿 Mozambique
🇹🇿 Tanzania
10Great Slave Lake10,000 sq mi
(27,000km²)
Freshwater🇨🇦 Canada
11Erie9,900 sq mi
(25,700km²)
Freshwater🇨🇦 Canada
🇺🇸 U.S.
12Winnipeg9,465 sq mi
(24,514km²)
Freshwater🇨🇦 Canada
13Ontario7,320 sq mi
(18,960km²)
Freshwater🇨🇦 Canada
🇺🇸 U.S.
14Ladoga7,000 sq mi
(18,130km²)
Freshwater🇷🇺 Russia
15Balkhash6,300 sq mi
(16,400km²)
Saline🇰🇿 Kazakhstan
16Vostok4,800 sq mi
(12,500km²)
Freshwater🇦🇶 Antarctica
17Onega3,700 sq mi
(9,700km²)
Freshwater🇷🇺 Russia
18Titicaca3,232 sq mi
(8,372km²)
Freshwater🇧🇴 Bolivia
🇵🇪 Peru
19Nicaragua3,191 sq mi
(8,264km²)
Freshwater🇳🇮 Nicaragua
20Athabasca3,030 sq mi
(7,850km²)
Freshwater🇨🇦 Canada
21Taymyr2,700 sq mi
(6,990km²)
Freshwater🇷🇺 Russia
22Turkana2,473 sq mi
(6,405km²)
Saline🇰🇪 Kenya
🇪🇹 Ethiopia
23Reindeer Lake2,440 sq mi
(6,330km²)
Freshwater🇨🇦 Canada
24Issyk-Kul2,400 sq mi
(6,200km²)
Saline🇰🇬 Kyrgyzstan
25Urmia2,317 sq mi
(6,001km²)
Saline🇮🇷 Iran

The Great Lakes World Tour

For people living in Canada and the U.S., the shape and relative size of the Great Lakes system may be quite familiar. This makes the Great Lakes a fantastic point of comparison to help put the size of other world locations into perspective. To this end, we begin our Great Lakes World Tour.

First, the image below shows how the Great Lakes system would look if it was located in India.

great lakes compared with india

Distortions on commonly used maps can downplay the size of India compared to more northern nations. This view of the Great Lakes can help put India’s true size into perspective.

Next, we look at the Great Lakes overlaid within Central Europe.

great lakes compared with europe

In the context of Europe, the lakes are so large that they extend from the Netherlands over to Slovakia. Lake Superior’s surface area of 31,700 mi2 (82,000 km2), is similar in size to Austria. Here’s are the five Great Lakes and European countries of equivalent size:

Great LakesSurface AreaEquivalent CountryArea
Lake Superior82,000 km2 (31,700 sq mi)🇦🇹 Austria83,879 km2 (32,386 sq mi)
Lake Huron60,000 km2 (23,000 sq mi)🇱🇻 Latvia64,589 km2 (24,938 sq mi)
Lake Michigan58,000 km2 (22,300 sq mi)🇭🇷 Croatia56,594 km2 (21,851 sq mi)
Lake Erie25,700 km2 (9,910 sq mi)🇲🇰 North Macedonia25,713 km2 (9,928 sq mi)
Lake Ontario19,000 km2 (7,340 sq mi)🇸🇮 Slovenia20,271 km2 (7,827 sq mi)

Lastly, here is a look at the Great Lakes in Southern Australia. Australia is the world’s 6th largest country, so the Great Lakes only occupy one corner of its land mass.

great lakes compared with Australia

Australia’s lack of glacial history means that there are few permanent freshwater lakes in the country. Many of the country’s largest lakes only fill up during periods of excessive rainfall.

Shrinking out of the rankings

Not far from the world’s largest lake, straddling the border between Kazakhstan and Uzbekistan, lay the sand dunes of the Aralkum Desert. In the not so distant past, this harsh environment was actually the bed of one of the largest lakes in the world – the Aral Sea.

Aral Sea receding 1960 2020

For reasons both climatic and anthropogenic, the Aral Sea began receding in the 1960s. This dramatic change in surface area took the Aral Sea from the fourth largest lake on Earth to not even ranking in the top 50. Researchers note that the size of the lake has fluctuated a lot over history, but through the lens of modern history these recent changes happened rapidly, leaving local economies devastated and former shoreside towns landlocked.

Lake Chad, in Saharan Africa, and Lake Urmia, in Iran, both face similar challenges, shrinking dramatically in recent decades.

How we work to reverse damage and avoid ecosystem collapse in vulnerable lakes will have a big influence on how the top 25 list may look in future years.

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All the Biomass of Earth, in One Graphic

Our planet supports nearly 8.7 million species. We break down the total composition of the living world in terms of its biomass.

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All the Biomass of Earth, in One Graphic

Our planet supports approximately 8.7 million species, of which over a quarter live in water.

But humans can have a hard time comprehending numbers this big, so it can be difficult to really appreciate the breadth of this incredible diversity of life on Earth.

In order to fully grasp this scale, we draw from research by Bar-On et al. to break down the total composition of the living world, in terms of its biomass, and where we fit into this picture.

Why Carbon?

A “carbon-based life form” might sound like something out of science fiction, but that’s what we and all other living things are.

Carbon is used in complex molecules and compounds—making it an essential part of our biology. That’s why biomass, or the mass of organisms, is typically measured in terms of carbon makeup.

In our visualization, one cube represents 1 million metric tons of carbon, and every thousand of these cubes is equal to 1 Gigaton (Gt C).

Here’s how the numbers stack up in terms of biomass of life on Earth:

TaxonMass (Gt C)% of total
Plants45082.4%
Bacteria7012.8%
Fungi122.2%
Archaea71.3%
Protists40.70%
Animals2.5890.47%
Viruses0.20.04%
Total545.8100.0%

Plants make up the overwhelming majority of biomass on Earth. There are 320,000 species of plants, and their vital photosynthetic processes keep entire ecosystems from falling apart.

Fungi is the third most abundant type of life—and although 148,000 species of fungi have been identified by scientists, it’s estimated there may be millions more.

Animals: A Drop in the Biomass Ocean

Although animals make up only 0.47% of all biomass, there are many sub-categories within them that are worth exploring further.

TaxonMass (Gt C)% of Animal Biomass
Arthropods (Marine)1.038.6%
Fish0.727.0%
Arthropods (Terrestrial)0.27.7%
Annelids0.27.7%
Mollusks0.27.7%
Livestock0.13.9%
Cnidarians0.13.9%
Humans0.062.3%
Nematodes0.020.8%
Wild mammals0.0070.3%
Wild birds0.0020.1%
Animals (Total)2.589100.0%

Arthropods

Arthropods are the largest group of invertebrates, and include up to 10 million species across insects, arachnids, and crustaceans.

Chordates

The category of chordates includes wild mammals, wild birds, livestock, humans, and fish. Across 65,000 living species in total, nearly half are bony fish like piranhas, salmon, or seahorses.

Surprisingly, humans contribute a relatively small mass compared to the rest of the Animal Kingdom. People make up only 0.01% of all the biomass on the planet.

Annelids, Mollusks, Cnidarians, and Nematodes

Annelids are segmented worms like earthworms or leeches, with over 22,000 living species on this planet. After arthropods, mollusks are the second-largest group of invertebrates with over 85,000 living species. Of these, 80% are snails and slugs.

Cnidarians are a taxon of aquatic invertebrates covering 11,000 species across various marine environments. These include jellyfish, sea anemone, and even corals.

Nematodes are commonly referred to as roundworms. These sturdy critters have successfully adapted to virtually every kind of ecosystem, from polar regions to oceanic trenches. They’ve even survived traveling into space and back.

The Microscopic Rest

Beyond these animals, plants, and fungi, there are an estimated trillion species of microbes invisible to the naked eye—and we’ve probably only discovered 0.001% of them so far.

Bacteria

Bacteria were one of the first life forms to appear on Earth, and classified as prokaryotes (nucleus-less). Today, they’re the second-largest composition of biomass behind plants. Perhaps this is because these organisms can be found living literally everywhere—from your gut to deep in the Earth’s crust.

Researchers at the University of Georgia estimate that there are 5 nonillion bacteria on the planet—that’s a five with 30 zeros after it.

Protists and Archaea

Protists are mostly unicellular, but are more complex than bacteria as they contain a nucleus. They’re also essential components of the food chain.

Archaea are single-celled microorganisms that are similar to bacteria but differ in compositions. They thrive in extreme environments too, from high temperatures above 100°C (212°F) in geysers to extremely saline, acidic, or alkaline conditions.

Viruses

Viruses are the most fascinating category of biomass. They have been described as “organisms at the edge of life,” as they are not technically living things. They’re much smaller than bacteria—however, as the COVID-19 pandemic has shown, their microscopic effects cannot be understated.

The Earth’s Biomass, Under Threat

Human activities are having an ongoing impact on Earth’s biomass.

For example, we’ve lost significant forest cover in the past decades, to make room for agricultural land use and livestock production. One result of this is that biodiversity in virtually every region is on the decline.

Will we be able to reverse this trajectory and preserve the diversity of all the biomass on Earth, before it’s too late?

Editor’s note: This visualization was inspired by the work of Javier Zarracina for Vox from a few years ago. Our aim with the above piece was to recognize that while great communication needs no reinvention, it can be enhanced and reimagined to increase editorial impact and help spread knowledge to an even greater share of the population.

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