How Will Rivian's 'Forever' Fund Help the Environment?
Genevieve Fraser
· 3 min read
New kid on the
electric vehicle
(EV) scene, Rivian, has pledged to financially support efforts to mitigate the effects of climate change.Through a fund called 'Forever,' Rivian will support efforts to combat the detrimental effects of climate change
Understanding Rivian's Forever fund
Rivian founder and CEO RJ Scaringe spoke in early October about his company's initiative.
According to
Car and Driver
, Scaringe acknowledged the current trajectory of climate change, noting that the finite supply of fossil fuels we so heavily rely on will one day be exhausted. Earth’s ecosystems are under attack and without significant action, they could be damaged beyond recovery. In the process, the lifestyles we now enjoy would be irreversibly altered.
With this sobering reality in mind, Scaringe promised to commit 1% of Rivian's equity to fight the environmental impacts of human-induced climate change.
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How will the fund help the environment?
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Scaringe explained, as reported by Car and Driver, that the Forever fund will aim to accelerate “high-impact climate initiatives,” in particular, “preserving and restoring wildlands, waterways and oceans.”
He went on to write that these areas are “powerful carbon sinks” that naturally store carbon, and they should be protected not just for their beauty but for the vital role they play.
Just as their line of EVs support positive environmental change by offering alternatives to gas-powered cars and keeping
fuel emissions
down, Rivian plans to continue investing in conservation efforts as the company expands and increases in value.Rivian preparing for Initial Public Offering (IPO)
MORE: Rivian Is Building a Second US Assembly Plant
It is important to note the investment of equity instead of profit will likely result in larger sums donated.
Rivian has been forthcoming about the fact that it likely won’t be profitable for a while, as the company has lost more than $3 billion since 2020, and plans to spend a further $8 billion on manufacturing infrastructure until the end of 2023.
However, with an anticipated $80 billion valuation from the Securities and Exchange Commission, 1% translates to $800 million in equity—a very sizable investment indeed.
Rivian's move to support this worthy course is a challenge to other automakers to follow suit. Hopefully, we will see similar commitments announced in the near future.
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