Letter to WMATA in response to proposed budget cuts

Letter to WMATA in response to proposed budget cuts

Members of the Board of Directors, Washington Metro Area Transit Authority (WMATA):

The Greater Washington Board of Trade urges you to reconsider the significant cuts proposed for the fiscal 2022 budget. Any of these reductions, individually or in combination, would dramatically stymie both near-term economic recovery and long-term economic growth. In particular, these cuts would adversely impact the essential workers we all rely on and further widen the region’s stubborn opportunity gaps and racial inequities.

We recognize the extraordinary financial challenges facing WMATA resulting from decreased ridership since the onset of the COVID-19 pandemic. Options are limited, we know. The two federal stimulus programs passed in 2020 provided sufficient funds to stabilize WMATA’s budget through fiscal year end 2021. And now it appears that additional funds will be available to carry through to the end of the 2022 fiscal year. This is great news for the public transit system that serves the national capital region, and our home, yet it’s not a long-term, sustainable approach for reliable day-to-day operations, system expansion and necessary capital expenditures. For example, even prior to current shortfalls, WMATA faced significant funding and strategic challenges.

The Board of Trade continues to support your efforts as we have since Metro’s inception. We have advocated for Metro’s growth, federal and local funding and more; including the founding of MetroNow to help secure long overdue dedicated funding in 2018. Now that our region looks to emerge from the pandemic, we should take this opportunity to reimagine the future of WMATA and public transit. Recognizing the outsized role that buses have played of late – this service made essential work possible throughout the pandemic and carried two to three times as many customers as rail – implementing the regional Bus Transformation Project is a good place to start.

Our economy continues to diversify away from the federal employment base for which Metro was originally designed. A growing population, new businesses and emerging technologies require us to think anew about goals for how WMATA will provide reliable, safe, and convenient regional mobility. And perhaps most importantly, how might we move the system away from the need to consider service cuts during challenging times. Pre-pandemic, transit only captured 3% of the 17 million daily trips in our region – mostly work trips – opening the door to look beyond the commute as a construct for the future. We look forward to working with all of you and WMATA’s management team to explore ways to do better.

Thank you for all you do to make our region more competitive, help decrease the use of single-occupancy vehicles and enhance our quality of life and for considering our position on this important matter. Metro stimulates regional economic opportunities and is a linchpin in the region’s economy. We must find ways to grow not shrink Metro.

Sincerely,

Jack McDougle
President & CEO
Greater Washington Board of Trade

Understanding the Opportunity Divide and its Impact on Corporate America

Millions of hard-working Americans lack access to good jobs and career pathways while at the same time, many employers struggle to hire the talent they need to succeed. This is referred to as the “Opportunity Divide.” At a national level, this dynamic is threatening US economic competitiveness. At the local level, many talented individuals are excluded from opportunities to build a long-term career and financial security. In this webinar, experts explored the perceptions, policies, and practices that often exacerbate the Opportunity Divide and begin to explore how your organization can be a driver for change.

PRESENTERS & MODERATORS

  • Ronda Thompson, Chief Diversity Equity & Inclusion Officer, Grads of Life
  • Krysta Sadowski, Director of Advisory Services, Grads of Life

PANELISTS

  • Rae Vann, Shareholder, Carlton Fields
  • Ken Jenkins, Business Development at NFP
  • Rebecca Shambaugh, President and CEO, SHAMBAUGH Leadership

Webinar Recording

Summary

Videos shown in the presentation from Grads of Life:

  • The “Opportunity Divide” impacts individuals and employers. On one side of the divide are individuals without traditional career pathways (for example, they may not have the opportunity to go to college). On the other side are employers who have roles, typically “middle-skill” roles, that they struggle to fill.
  • “Opportunity Talent” are those individuals who lack traditional career pathways but do posses unique skills and the desire to work. They may be young people not in higher education, people with disabilities, or the formerly incarcerated.
  • Companies are most successful in their diversity, equity, and inclusion (DEI) efforts when the very highest levels of leadership support and advocate for it. Companies should identify executives who are responsible for DEI outcomes and provide resources and businesses processes to support them.
  • Ken Jenkins of NFP said that the most the most critical step is to define the relationship between the DEI advisory board and the executive leadership team and the governance model. The company should decide if the DEI advisory board is a recommending body or a decision-making body, and how changes will be reviewed and implemented. Establishing a strong structure ahead of time ensures that DEI efforts are fully supported by the organization.
  • It is important that companies have structures in place to hold executives accountable for DEI outcomes. As Rebecca Shambaugh of Leadership put it, “What gets measured gets done.” Companies should track their DEI performance with quantifiable metrics and data, and make outcomes an expected part of executive performance.
  • It is also important that executives understand how their employees are experiencing work. One way to do this is to go on a listening tour and create a space where employees can share their needs and concerns. Black employees often report unfair disadvantages, such as not being given the same levels of constructive feedback or opportunities to build visibility in their organization.

About the Racial and Social Equity Webinar Series

The Greater Washington Board of Trade’s Racial and Social Equity Webinar Series will provide business leaders across the region the knowledge and tools they need to build more diverse, inclusive, and equitable organizations. It will help leaders identify drivers of inequity and injustice and take concrete steps towards being agents of positive change.

Sponsors

Presenting Sponsor and Knowledge Partner

Executive Sponsor

Supporting Sponsor

Program Partner

What to Expect in the Biden Administration’s First 100 Days

The Biden Administration is now underway and moving quickly to enact a new policy agenda. In this webinar, a panel of experts discuss Biden’s early moves on pandemic response, economic recovery, and more.

Moderator: Evan Kraus, Managing Director & President of Operations, APCO Worldwide

Speakers: 

  • Dr. J. Stephen Jones, President & CEO, Inova
  • Evelyn Lee, President, Greater Washington Region, SunTrust Bank now Truist
  • Chris Scribner, Senior Policy Advisor, Venable, LLP
  • Dr. Kavita Patel, Physician and Health Policy Expert

Watch the Recording

Preparing for the 59th Presidential Inauguration

Following is a letter to Board of Trade members and friends from our President and CEO, Jack McDougle:

Washington, DC will host the 59th Presidential Inauguration on January 20, 2021 under extraordinary circumstances that none of us could have imagined. As during past Inaugurations and even more so this year, we are in close contact with the Secret Service, FBI, DC Homeland Security and Emergency Management, and other agencies to monitor security procedures and other issues. As you might imagine, the situation is constantly evolving, and officials are striving to adjust as needed. Over the next week, we encourage everyone to err on the side of caution across the region, especially in downtown DC.

Please stay close to your preferred news sources and, if you have not already, visit inauguration.dc.gov or text INAUG2021 to 888-777 for real-time updates from the DC government on public safety, street closures, weather alerts, transit updates, and more. 

A few updates:

  • Beginning at 6:00 am this Friday, January 15, all parking garages in restricted zones will be inaccessible. Any vehicle still in a garage or loading zone after this time must remain there until after the Inauguration. Restricted zones include the White House Zone (19th to 14th Streets NW and K Street to Constitution Ave). More street closures and restricted zones will be announced later. Visit inauguration.dc.gov/closures for the latest.
  • Metro will close 13 stations (11 beginning Friday and an additional two on Saturday) in downtown DC through the Inauguration. Read the announcement for more details. 
  • Mayor Bowser, Governor Northam, and Governor Hogan are asking people not to attend the Inauguration or travel to downtown DC. Most events have been canceled or will be held virtually.
  • Federal assistance has been approved to supplement DC’s response efforts due to the emergency conditions through January 24, 2021. More than 15,000 National Guard troops are expected.
  • DC non-essential businesses are required to telework to the maximum extent possible as per COVID-19 restrictions.

This will continue to be a fluid and dynamic situation. Please stay informed and have a plan for unexpected curfews, street closures, and transit disruptions.

After a year of upheaval with the COVID-19 pandemic, economic duress, long overdue attention to racial and economic inequality, and last week’s reprehensible attack on the U.S. Capitol, we are tired, frustrated, stressed, annoyed, and the list goes on. Yet, over the long term, our region will prevail and emerge stronger.

In the meantime, and I know you are, please take care and stay safe. And let us never forget to appreciate everyone who continues to work tirelessly on the frontlines for our benefit—nurses and doctors, firefighters and police officers, transit and utility workers, and many more. We owe them so much.

Please contact me if you have questions or concerns.

Yours very truly,

Jack McDougle
President & CEO, Greater Washington Board of Trade

What to expect from the Biden Administration

In this 1-hour webinar, a cross-sector panel of experts discuss how the Biden Administration is likely to change public policy in Congress and the White House and what that means for your company and community.

Moderator: Evan Kraus, President & Managing Director of Operations, APCO Worldwide

Speakers:

  • Larry Di Rita , Greater Washington, DC Market President, Bank Of America
  • Bart Gordon, Partner, K&L Gates
  • John Mayo, Professor and Executive Director of the Center for Business and Public Policy, Georgetown University
  • Karishma Page, Partner, K&L Gates

Read the summary

Priorities for the Incoming Biden Administration

Clearly, getting the COVID-19 pandemic under control, preventing more mass casualties, and getting our economy back on track are going to be top priorities for the Biden Administration. All panelists agreed that Biden must prioritize testing, contact tracing, distribution of a vaccine, and passing a stimulus deal. (Which, John Mayo thinks will not happen in the lame duck session.)

But there are other major priorities that will compete for the Biden Administration’s attention and resources. Larry Di Rita explained that all incoming administrations have a list of executive orders ready to go on day one, and that this is a way to set the tone early in their tenure. He expects Biden to release early executive orders on immigration and climate change.

Bart Gordon said that Biden will have to “walk and chew gum at the same time,” citing rebuilding our reputation with foreign allies as one of those other projects. Gordon also said it would be important for the Biden Administration to meaningfully engage on climate, both because it’s the right thing to do and because it is a way to build bridges with the progressives in the Democratic party. He can start by rejoining the Paris Climate Accord and rolling back some deregulations from the Trump Administration.

What the policy landscape may look like…

On SBA loans and stimulus

Karishma Page pointed out that there will be a great deal of scrutiny and oversight of how stimulus dollars are allocated and spent. This will not likely result in retroactive rule changes to SBA loans, but there may be changes to the rules in future stimulus deals.

Larry expressed his view that the SBA’s Paycheck Protection Program (PPP) should be considered a success, even if there is some room for improvement. There is tension between spending money correctly and see more of that money get pushed out, and we have an opportunity to fine-tune the program if it gets a chance to be continued.

Larry does not expect interest rates to increase above their very low rates anytime soon, and though the rising debt will need to be addressed, it does not need to be a priority in the short term. It will take a while to get to troubling levels of inflation, and getting stimulus spending out to people and businesses that need it is essential for economic recovery.

John pointed out that this recession has been demand-induced, so it lends itself to stimulus. But a nuance is that it is very idiosyncratic and depends on the sector—some have suffered, like restaurants and airlines, while others have done well, like the tech sector.

On tax policy

Karishma Page explained that the Biden campaign made it clear that review of tax policy is on the agenda, but a Republican Senate creates significant headwinds. However, that does not mean nothing will get done. A starting point is the stimulus for COVID-19, where tax policy can be used to stimulate economic activity.

On infrastructure

There has been bipartisan interest in an infrastructure package, but there is continuing disagreement between the parties on how much to spend and how we are going to pay for it.

On the minimum wage

On scale of 1 to 100, Karishma puts the likelihood that the federal minimum wage will change at 30. There is some bipartisan interest in raising the wage, but very partisan disagreement remains on the amount. We will likely see more state and local jurisdictions raising minimum wages, which creates a patchwork of policy across the country and increases pressure for a federal minimum wage increase. The chances might increase as we get closer to the 2022 race because there are more republican members of congress in vulnerable seats.

On tech policy

John says he expects the debates to continue but Biden’s influence may bring down the heat and hyperbole.

On healthcare

Assuming republicans hold their majority in the Senate and the ACA is not overturned by the Supreme Court, Karishma believes there can be some bipartisan support for certain issues, like curbing surprise billing and providing price transparency. There are probably not very big ramifications for employers.

TD Bank Morning Star Speaker Series Featuring John Feinstein

The TD Bank Morning Star Speaker Series brings great authors and thought leaders to the Board of Trade community for conversations that spark ideas and inspiration. On November 10, the series hosted legendary sports writer John Feinstein.

Watch the Recording

About Our Speaker

John Feinstein is one of the great writers in American sports history appearing 23 times on the ‘New York Times Best Seller List’, including two books that reached number #1.

For many years John wrote for The Washington Post, The Sporting News, and Golf Digest and has also been a regular on-air commentator for a number of television and radio programs including The Golf Channel, United States Naval Academy Football, National Public Radio, Sirius XM and the Tony Kornheiser Show.

John’s latest work is in the form of an exclusive audio book. John Feinstein: The Friends I’ve Made, features five of John’s most meaningful relationships captured in a series of intimate conversations providing listeners with an in-depth look into both John and the backgrounds of the high-profile coaches and athletes he has covered. The Friends I’ve Made features remarkably personal exchanges with Michigan State Men’s Basketball Coach Tom Izzo, golf personality David Feherty, Golden State Warriors Head Coach Steve Kerr, tennis analyst, sports commentator and women’s journalism pioneer Mary Carillo, and Duke Men’s Basketball Coach Mike Krzyzewski.

Our Series Sponsor

Regional Policy Leadership Series: Session Recap

This virtual event series presented by Capital One will give Board of Trade members and friends the opportunity to hear from local government officials on issues impacting the business community today.

On Friday, October 30, Board of Trade members and friends heard from the Hon. Angela Alsobrooks, Prince George’s County Executive; the Hon. Phil Mendelson, Chairman, Council of the District of Columbia; and the Hon. Jeff McKay, Chairman, Fairfax County Board of Supervisors on their current and future actions they are taking to help navigate through these uncertain times.

Watch the Recording

Read the Summary

  • Prince George’s county was already leading the state of Maryland in job creation and transit-oriented development. County Executive Alsobrooks says that the pandemic has actually been an opportunity to accelerate investments in their community.
  • Chairman Mendelson said that the DC government is focused on closing the achievement gap among public school students, which has been exacerbated by the pandemic. They are paying more attention to that now and making it a greater priority.
    • Regarding the pandemic, he is nervous to see how public health trends go as we head into the colder months. He said that DC is still in phase 2 of reopening. He also raised concerns about the potential efficacy and adoption of a future vaccine, warning that having a vaccine available may not be enough to completely solve the COVID-19 problem.
  • Chairman McKay says that his administration in Fairfax County has evolved to see the pandemic as a long-term change in our way of life, not just a short-term problem. We need to rethink how we get back to normal.
    • He says, “Our best days are when we are tested.” He agreed with County Executive Alsobrooks that the pandemic has caused our communities to double down on efforts to solve systemic issues, such as the lack of affordable housing.
  • County Executive Alsobrooks described her administration’s dedication to being forthcoming, clear, honest, and engaged with their community and facilitating continuous two-way communication. She says that has helped to build public support and participation in fighting the virus.
    • She also says that by continuing to make decisions in the best interests of the public and based on the guidance of public health experts, local governments can build and maintain trust from the public.
  • Chairman Mendelson notes that the whole region is seeing great compliance with mask mandates and that generally, wearing a mask has not become a political issue here. He credits the consistency and honesty of local government leaders, and echoed County Executive Alsobrooks in saying that this builds public trust.
    • He argued that having adequate supplies for testing and PPE so that the public can take care of their own needs is also important, and that allowing and concealing shortages of these materials breeds distrust.
  • Chairman McKay agreed with County Executive Alsobrooks and Chairman Mendelson that local governments must be a trusted source of information for residents. He described the decision of his county and others in Northern Virginia to slow down reopening in their jurisdiction at a time when the rest of Virginia was moving to the next phase, and he claims that this decision likely made a big difference in reducing transmission. He also credits this decision with building additional trust with the public.
    • Chairman McKay explained that Fairfax County does enforce its mask mandate and take it seriously. They employ multi-language campaigns to make sure that all members of the community are aware of the expectations.
  • On the economy, County Executive Alsobrooks admitted that she expects that the region will see some pain over the next few years, but she stressed the importance of continuing to make smart investments in transit, workforce, childcare, and other areas so that the region can stay competitive with other regions in attracting business.
  • Chairman Mendelson said that the DC economy is holding up surprisingly well, but still taking a big hit. There is a great amount of uncertainty. He does not wish to cause alarm but does believe we should be clear about the risks ahead.
    • He is particularly concerned about the looming eviction crisis. Right now, there is a moratorium on evictions, but when that expires, we could be facing a huge eviction surge. He says the DC government has not found a solution yet.
  • Chairman McKay says that Fairfax County is doing a great job attracting new businesses, the real estate market is “red hot,” and interest rates are low—all good factors for the county economy. However, he echoed Chairman Mendelson in expressing concern about commercial real estate and the future of that market.
    • The biggest challenge Fairfax County faces as a community is balancing the county budget if the federal government does not pass another stimulus that includes money for states and local governments.
    • He said that Fairfax County is testing the population aggressively so that they have a clear view of the degree to which COVID-19 is spreading. He said that the county is doing really well but it is important to keep a close eye on the health metrics and be ready to increase restrictions if needed, but if residents continue to comply with existing guidance, hopefully that won’t be necessary.
  • On education, County Executive Alsobrooks described that it was important at the beginning of the pandemic to ensure that all children can learn virtually, which meant distributing laptops and providing internet connections for some families.
    • She described their infrastructure financing program, which is emerging as a model for the country. That program includes building six new schools over the next few years, which will allow the county to create jobs, provide better facilities for students, and stimulate economic activity that is expected to benefit small and minority-owned businesses.
  • Chairman Mendelson said that DC is planning on bringing some children back to school, prioritizing the youngest children and those with disabilities, but there is controversy surrounding this decision. He said that education is a long-term investment, so not overcoming the gaps that are occurring because of distance learning will have long-term consequences.
    • Like Prince George’s County, the District has invested in providing laptops and wifi hotspots to the community to enable distanced learning, which Chairman Mendelson says is a silver lining of this situation.
  • Chairman McKay has small children at home, so he understands the frustration of parents. He also said that Fairfax County has invested in providing the digital tools for distance learning, like Prince George’s County and the District.
    • He described a summer camp that was used as an experiment for safe on-site childcare and learning, which was successful and has been expanded during the school year for children whose parents cannot supervise them during the day.
  • The panelists were asked for their views on how a Biden victory in the upcoming presidential election would impact their jurisdictions. County Executive Alsobrooks says she believes Prince George’s county would acquire the new FBI headquarters, a major asset for her community. Chairman Mendelson raised the issue of local governments needing additional federal stimulus, especially the District which was shortchanged in the CARES Act, and said this is much more likely to happen in a Biden administration (the Trump Administration has opposed providing additional funding for state and local governments). Chairman McKay agreed on these points and added that a Biden administration will carry the message of scientists on how to address the pandemic, which will help local governments who need to deliver those messages. He also said that under a Biden administration, he expects there to be more public trust in a vaccine, which is critical to getting the adoption we need. He summarized that a Biden administration would boost federal employee morale, be good for federal contractors, provide more desperately needed funding for state and local governments, and boost public trust in our public health efforts.
  • The panelists were asked to name one major priority for the remainder of the year. County Executive Alsobrooks said she is focused on supporting local businesses. Getting to a strong economic position will go very far in supporting families in our region. Chairman Mendelson said that a priority issue in the District is building public trust in their police force. He says that he believes DC is far ahead of other jurisdictions around the country on policing, but more can be done. Chairman McKay said a priority issue is instilling confidence in the public that when we begin to emerge from the pandemic, the county will continue to be a great place to do business. The county is committed to growing the economy and ensuring all residents can do well.

This webinar sponsored by

The Big Ideas for National Landing & What They Mean for the DMV

National Landing, which encompasses the Northern Virginia neighborhoods of Crystal City, Pentagon City, and Potomac Yard, is undergoing an exciting transformation. Big investments in buildings, transportation, and public amenities are predicted to benefit local residents while stimulating economic activity. In this webinar, leaders behind National Landing’s development plans explain what we can expect and how lessons learned on the National Landing project can be applied across the D.C. metro region.

Moderator: Nora Gardner, Senior Partner, McKinsey & Company

Panelists:

  • Jack Potter, President & CEO, Metropolitan Washington Airports Authority
  • Lance Collins, Executive Director & Vice President, Innovation Campus, Virginia Tech
  • Evan Regan-Levine, Executive Vice President, JBG Smith

Watch the recording

Read the summary

JBG Smith

  • JBG Smith saw a lot of opportunity in the Crystal City area because there is a confluence of transit, access to DC, and density. But it lacked good retail amenities and had too high of a ratio of commercial to residential real estate—it needed more retail and housing.
  • JBG Smith sat down with Amazon and discussed what it would look like to revitalize the Crystal City area. Amazon also saw the potential.

Virginia Tech

  • Virginia Tech’s plan is to build a campus that in 10 years will produce 750 masters degree students per year.
  • Another goal is to increase diversity in tech, acknowledging that tech jobs can be high-paying, but the tech field is not always very diverse. They believe that this starts with academia and making sure that graduates are diverse so companies can then hire diverse candidates.

MWAA

  • DCA sees a lot of opportunity for growth and is eager to see more connectivity between the airport and surrounding communities. The traveler’s experience from their community to the airport should be seamless.
  • Jack Potter warned that there is going to be a lot of construction and there will likely be some traffic, and it will require some patience.

JBG Smith

  • On the long-term COVID-19 impacts, Evan assumes that teleworking will probably not go away, but people will value being able to enjoy public spaces and enjoy their communities. JBG has doubled down on “smart city” investment to bring more internet connectivity to public spaces.

Virginia Tech

  • Lance expects that COVID-19 will spur the development of virtual learning platforms that enable more peer to peer interaction, which is not easily accommodated right now.

MWAA

  • The airports are cutting costs as much as possible without compromising safety, but they are also trying to continue their capital investments so that they can continue to improve the travelers’ experience. Funding from the CARES Act has helped.
  • They expect that National Landing is going to be a part of their long-term financial solution, bringing a lot more travelers through the airports. So, they are staying optimistic, expecting the traffic to come back.

JBG

  • JBG’s vision for a digitally connected “smart city” starts with a strong fiber optic network. They are making those investments so that down the road new technology companies see the area as a strong foundation to build on because of the faster, more secure internet connectivity.

Virginia Tech

  • Lance noted that making STEM more inclusive actually starts all the way back in K-12. Early stage decisions can cost students with talent the opportunities they need. It is therefore important that local public school systems have strong STEM programs.

This webinar was sponsored by:

Building Resilience Through Corporate Climate Action

Amid the coronavirus pandemic, everyone is rightly focused on protecting lives and livelihoods. Can we simultaneously prevent the next crisis? The answer is yes—if we use this moment to reimagine business for a climate-neutral world. This webinar includes an overview of McKinsey & Company’s world-leading research on climate change and a panel of corporate leaders who have taken giant strides towards a sustainable future.

Presenter and Moderator:

Kimberly Henderson, Partner, McKinsey & Company

Panelists:

  • Chris Roe, Principal, Renewable Energy & Sustainable Operations, Amazon
  • Cynthia Curtis, Senior Vice President, Sustainability, JLL
  • Melissa Lavinson, Senior Vice President, Government and External Affairs, Pepco
  • Myrrh Caplan, Senior Sustainability Director, Skanska USA

Watch the recording

Read the summary

Kimberly Henderson, Partner, McKinsey & Company, began the webinar with an overview of McKinsey & Company’s world-leading research on climate change. She noted that in 2020, we are standing at a fork in the road on climate, and the choices we make now determine where we go.

Continued growth of greenhouse gas emissions at today’s pace (“business as usual”) would cause about 5 degrees C of warming by 2050. This amount of warming would case more extreme weather events and have disastrous consequences. For example, heat waves that had a .2% chance of occurring between 1961-1980 now have a 15% chance of occurring. That trend will worsen and could lead to life-threatening temperatures in places like Pakistan.

If we assume that nations and companies around the world follow through on their climate change commitments, we will see some reduction in greenhouse gas emissions and estimated warming of 3.5 degrees C by 2050. This is still enough warming to cause tremendous damage. The global goal among nations and the scientific community is to limit warming to 1.5 degrees C—so much remains to be done.

Summary of the panel discussion

How are each of your companies approaching coming up with a climate plan and setting targets?

  • Chris Roe explained that Amazon’s climate pledge was an effort to galvanize the rest of the private sector. They have a series of commitments related to reducing their climate impact, including powering global operations with 100% renewable energy by 2025. To fulfill that commitment, they have placed an enormous order for electric vehicles—over 100,000, the biggest order in history. They are also investing in new technologies through the Climate Pledge Fund.
  • Cynthia Curtis noted that JLL has set a science-based emissions target. This requires deep cuts in emissions that come from their suppliers, their own operations, and their clients. Suppliers and clients are particularly important because their emissions are JLL’s biggest share, when you consider all emissions associated with JLL’s business. JLL is also investing in new technologies to help the sector improve.
  • Melissa Lavinson said that Pepco will deliver 100% renewable energy to the District by 2032. They are focused on not only reducing their company’s carbon footprint, but also working with their customers and communities. They have managed a few initiatives that have supported entrepreneurs in the climate mitigation space, encouraged customers to conserve electricity, and supported multiple nonprofits through sustainable community grants.
  • Myrrh Caplan said that Skanska has committed to being completely carbon neutral by 2045, which is above what was really required for their industry. They have already made a lot of progress through partnerships with their suppliers and project partners and by making big changes like electrifying mining equipment and reducing business travel.

How do you work with suppliers upstream, customers downstream, and others in the community?

  • Cynthia described working closely with suppliers and customers and said that it has been central to their climate work. She acknowledged that buildings are a big contributor of greenhouse gasses and the industry has a responsibility to attack the challenge head-on. JLL developed a sustainable procurement framework that has been adopted by procurement teams globally. Suppliers have been supportive and clients are glad to have a partner in addressing their own climate goals.
  • Myrrh called out the reality that concrete, obviously an important material in construction, is extremely carbon intensive. They can use different types of concrete that reduce the carbon footprint by half but that is not a big enough reduction. To drive down the carbon footprint of cement further, they partnered with other climate experts to develop a digital tool that calculates the carbon footprint of different concrete mixes and has used that to send the message to suppliers that carbon footprint is an important factor in Skanska’s procurement decisions.
  • Chris described using Amazon’s enormous purchasing power to increase renewable energy supply. They have funded the development of 12 renewable energy sites to date. In our region, they have forged an agreement with Arlington County and Dominion to develop enough renewable energy to not only power HQ2, but also all their Whole Foods stores and parts of Arlington County.
  • Melissa reiterated that Pepco is working with customers to improve energy efficiency. This also helps low-income customers save money. They are also making improvements to the grid to allow homeowners to use their own solar panels and they are working with the District to put in electric charging infrastructure, which requires working with WMATA. Pepco has a set clear goals and has a firm timeline, and the public sector has a very important role in supporting that.

Kimberly points out that around the world, government-set emissions reductions goals have been becoming more and more ambitious and are actually being met by communities and companies.

Other take-aways:

  • On renewable natural gas (RNG) and hydrogen: These are green alternatives to natural gas, but there are big technical and economic challenges to deploying these fuels at scale. Amazon is exploring using these fuels for long-range trucking, but only if the fuels can be produced by powerplants that are powered by renewable energy—otherwise, there is not a big enough carbon reduction benefit. Melissa also noted that in other applications, these fuels are a possible replacement for natural gas but they need to be cost-competitive with renewables. When assessing whether to electrify or invest in hydrogen or RNG, the decision comes down to the economics.
  • Quote of the day: If it’s not affordable, it’s not sustainable.
  • Cynthia shared a great example of partnerships. JLL worked with Metro to install solar panels on some of its infrastructure so that it can generate revenue, which makes great economic sense because it diversifies its revenue streams. This has been especially helpful in a situation like a pandemic when ridership is down.
  • The panelists agreed that public policy has a very important role. It helps to lay out a path that companies can follow. When companies make very long-term investments, clear public policy can give them confidence. Some challenges are just too big for companies to tackle.

If each panelist had a magic wand to fix one thing that would help decarbonize their sector:

  1. From Myrrh: We need to increase the circularity of the material supply chain. We have ignored that for so long that it is now working against us.
  2. From Chris: Electrification. It’s so fundamental to the climate challenge.
  3. Cynthia: Improving building standards and codes. Class A buildings get investment and you can get to better decisions around sustainability, but Class B and C buildings will need standards and regulation to force green designs.
  4. Melissa: Increase capacity but reduce size of battery storage.

This webinar was made possible by:

Resilience Over Recovery: Safeguarding Your Business Ahead of Economic Downturn

Ashish Khosla is Senior Vice President and
Greater Washington Market Executive of Commercial Banking for Bank of America

Even if all you had to worry about were the quality of your company’s products or services and continued growth of its customer base, running a business would be challenging enough. However, companies are also subject to economic and environmental forces beyond their control. A change in the economic cycle could disrupt your cash flow, tighten your access to credit, rattle your customers and suppliers and even threaten the survival of your organization.

No one can precisely predict changes in the economy. Sometimes, they seem to come out of nowhere, as with the coronavirus outbreak, which, in addition to its personal toll, has made companies of all sizes rethink their short- and long-term plans.

A recent report from the Downtown Business Improvement District revealed downtown D.C.’s economic activity at the end of July 2020 was an estimated 12 percent of activity in July 2019. In addition, the city’s daytime population decreased by 90 percent between February and July, while the retail vacancy rate reached a record high of 17.1 percent in July. Although the Washington region has fared relatively well in comparison to many other metropolitan areas, the coronavirus continues to present substantial challenges for our local economy and businesses.

Weathering ever-evolving conditions involves keeping up with trends and forecasts for your specific industry, following broader assessments of the economic outlook, ensuring the safety of your employees and, most important, taking a close look at your own operations. A careful review of your internal processes and your key relationships may prompt you to make changes that could make your business more efficient, flexible and resilient under any circumstance. As you respond to current conditions, here are some challenges and key steps to keep in mind:

Take a look at your cash flow

During both good and bad times, cash flow can be a central challenge for businesses and is often cited as a top reason small business fail. Companies with great products and loyal customers can still falter without sufficient liquidity to meet payroll, pay suppliers and keep the lights on.

To safeguard against temporary shortfalls:

  • Ask your banker about overdraft protection
  • Speak frequently with customers and suppliers to stay aware of any potential changes in their businesses that could ultimately affect yours
  • Review how reliably your customers pay what they owe and create a watch list of those who consistently fall behind. A little probing may help you address issues proactively.

Assess your credit situation

Credit can be a lifesaver during challenging financial times. During the recessions of 1990-91 and 2001, the growth rate for commercial banking loans to businesses dropped to zero, according to the Federal Reserve Bank of St. Louis.

In a difficult economy, lenders may be especially cautious about companies they don’t know well. In fact, most lenders like to understand how a business performs over an entire business cycle. During good times, have you made capital expenditures to grow the business? During bad times, have you responded well to downturns? Knowing that your business has weathered challenges and responded effectively may give a lender the confidence to extend credit.

Give your company “survival training”

When a cyberattack takes down your website, a key employee leaves your firm or a natural disaster strikes, your company’s everyday operations can be threatened. The risk of adverse events may be greater than you think, and they can be particularly devastating during times of economic stress.

By 2018, business cybersecurity breaches had increased by 67 percent in five years, and during the first seven months of 2019, the U.S. experienced six climate and weather catastrophes with losses of more than $1 billion each. One in four small businesses fail to reopen after a natural disaster. Preparing your company to withstand challenging circumstances can make the difference between re-building and going out of business.

Keep tabs on expenses

During the Great Recession of 2008-2009, nearly 75 percent of company leaders identified cost cutting as a top priority. However, trimming expenses across the board during an economic crisis can backfire. Instead, take stock now of all your processes, from front-line to back-office functions, to determine what kind of savings might be possible when needed.

Make a plan for what to cut. Work through “what if” scenarios ahead of a downturn to determine the least painful and most effective reductions. Consider renegotiating agreements with suppliers or adjusting payment terms to align with revenue cycles.

In addition, automate where possible. An estimated 45 percent of jobs now performed by people in the U.S., at an annual cost of $2 trillion, could be automated with existing technologies. Administrative tasks like payroll, and other record-keeping, can often be digitized at minimal cost. However, be careful when it comes to reducing headcount. Automation can be an opportunity to re-train or re-focus employees on more value-added areas of your business.

Competing in business today requires endless resilience amid disruptions that can reinvent entire industries without warning. The steps outlined above are best practices that can help make your company stronger in the face of challenging, and often uncontrollable, external forces. The more you do to plan essential aspects of your company’s financial future, the more control you’ll have over your and your business’ future success.

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© 2020 Bank of America Corporation

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