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With recent high volatility in energy prices, our clients are more concerned than ever about reducing their exposure to unpredictable energy prices. Additionally, renewable energy has become a “hot button” in America and organizations are feeling more pressure than ever to go “green” and reduce their carbon footprint.
In response to this, George K. Baum & Company has developed relationships with renewable energy providers to help our clients manage energy risk while reducing their carbon footprint. We have worked with renewable energy providers to develop a product that hedges our clients risk against future fluctuations in energy prices. The hedging product is called a Contract-for-Differences (CFD) and allows our client to fix a portion of energy costs for up to 15 years. The energy purchased comes from a renewable source such as wind. The CFD gives the organization price certainty against the long term risk of run-away electricity prices. CFD’s help organizations meet internal and external sustainability goals, reduces organizations carbon footprint and helps obtain positive publicity for organizations.
For more information on CFD’s and how they work please click here. For more information on this product and other hedging products available to your organization please contact us.
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