A open letter to Sabien shareholders from the Executive Chairman
22nd February 2021
How can we solve the climate change challenge? It’s a question we are all asking and there is a growing recognition that we need to get much smarter with our investment choices.
This point was made forcefully and recently by the Bank of England’s former Governor, Mark Carney in his Reith Lectures, and it is the driving narrative in Bill Gates’ new book.
Every financial decision must take climate change into account. Not as an afterthought or a box-ticking exercise or as woke, millennial-friendly PR. But as an economic imperative that informs and dictates decision-making, that rewards and emboldens business leaders, shareholders and investors and – critically – that will save the world.
They, and others not historically associated with climate activism, ask that we understand that fundamentally transformative, carbon neutral technologies will take many years to displace the legacy solutions we have relied on for decades. But that doesn’t mean we should sit on our hands and wait for these solutions to appear. It is not hyperbolic grandstanding for individuals such as Carney and Gates to outline how action, taken now, can allow us all to make bold moves
Over the last few years, as someone from a technology background, I’ve become increasingly convinced that advanced technologies (cloud delivery, big data and artificial intelligence etc.) can be applied to the legacy solutions to make them much more efficient. That increase in efficiency has the potential to deliver dividends for all – lower cost to the user, less environmental impact and from a purely selfish perspective, profits for the companies with the expertise and vision to deliver.
And so to Sabien Technology Group. We provide and operate systems in the green tech space that deliver exactly what I have just described. If universally adopted, we estimate Sabien’s boiler control technology could produce efficiency savings (and carbon reductions) of up to 20% in the commercial heating sector. We are not replacing. We are working with existing assets to make them more efficient: economically and environmentally.
We believe this approach can be applied to many so called “legacy” industries. Based on this belief, we intend to scale the business by forging new partnerships and growing our portfolio of operations dedicated to creating a more sustainable future. For both our environment and our economy.
Why now? Why not? The world has changed more in recent times than at any other period since the mid-20th Century. We have witnessed innovation and progress at breakneck pace, national and international bureaucracies work at corporate speed, and corporates pay attention to all their stakeholders with a care previously reserved for governments.
We’ll focus on three key areas: heating, cooling and transportation, the three major contributors of carbon emissions, and we’ll be concentrating on those technologies that can address CO2 reduction at the point of consumption. We’ll work with start-ups to nurture fledging ideas and deliver innovative green technologies. We’ll support legacy players in key sectors such as utilities, to help transform their businesses. In addition to that key focus, the Board will also consider opportunities to invest in fundamentally new carbon reduction technologies that have the potential to deliver significant returns to our shareholders.
With an international network of contacts and strong Anglo-American links, as well as an existing portfolio of global patents – Sabien has the people, the skills and the approach to direct and facilitate smarter investment. We’ll prove the imperative and provide the incentive to spend on green and support crucial private investment in the space.
It’s been an eventful few months, but with the support of a strong and experienced board, I’m excited – and relieved! – to have launched the reinvigorated, re-focused company.
Richard Parris, Executive Chairman, Sabien Technology Group PLC
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