Jacobs Solutions Inc. (J) Earnings Call Transcript & Summary

Okay. Good morning, everyone, and welcome once again to our ESG conference. I'm Jerry Revich, head of Americas machinery, infrastructure and sustainable tech research at Goldman Sachs. And I'm delighted to host today's discussion, deploying infrastructure and solutions to deliver inclusive growth. We have really outstanding panelists joining us: first, Brigitta Witt, Vice President, Social Impact and Sustainability at T-Mobile; next, we have Jan Walstrom, Senior Vice President, Office of Global Climate Response and ESG of Jacobs; and immediately to my left, Jill Sanchez, Director of Sustainability at Deere & Company. Brigitta, Jan, Jill, thank you very much for joining us.

Thank you.

Pleasure.

Thank you.

So obviously, a diverse set of companies and businesses. One common thread here is the focus that each of your companies has on carbon reduction. And to kick off the conversation, Brigitta, at T-Mobile, you folks now source 100% of your electricity from renewable energy. You folks have reduced Scope 1 and 2 emissions by 95% since 2016, Scope 3 emissions by over 15%. I'm wondering if you could talk about, from a high-level standpoint, what has been the impact on your cost structure as you folks have decarbonized on -- to deliver the set of numbers we just went through.

Yes. So we set our renewable energy goal in 2018. And we -- at the time, we were industry-leading, first wireless company to set such an ambitious target. 2019, we set our science-based targets to reduce our Scope 1 and 2 emissions by 95%. So as if the renewable energy goal wasn't enough, we went ahead and did that as well. And we're really excited that we achieved both of those goals in 2021. And the science-based targets we actually achieved 4 years ahead of schedule. So we're just incredibly proud, I think, of the progress that we made on that front. And with respect to how we structured our renewable energy program, we were actually very deliberate to make sure that it was self-funded, right? We didn't want to set up a program that we wouldn't be able to accomplish kind of 10 years down the road over the -- the cost barriers would have been insurmountable. So the PPAs that we have essentially self-fund the -- our renewable energy transition. So it's a very, I think, pragmatic way to accomplish a pretty difficult goal. And in fact, we hedge the majority of our energy costs through these PPAs as well. So it's really been a win-win for us on a number of different fronts.

And Brigitta, data usage -- interestingly enough, you folks are now talking about reducing energy consumption per -- by 95% over the 2030 versus 2019 time frame. Can you talk about how you get there? That's a pretty large number. What are the milestones that you're targeting?

We love really big goals at T-Mobile. Yes, it's actually -- there's really 2 components to the goal, right, or building blocks, I think, as you call them. There is the energy consumption and then there's the traffic that goes through our network. The energy consumption, some pretty kind of standard levers there, right, reducing our consumption through decommissioning cell sites that are not heavily used. We employ a lot of energy efficiency initiatives in our network sites. We've gone to a lot of energy efficiency fixtures in our retail stores, right? So those are kind of the traditional measures. And the second building block is really the traffic that goes through our network. That's the denominator, if you will. And the goal there is really to drive as much traffic through our network as we can. And through our both 5G deployment as well as record customer growth over the last 2 years, we've actually really been able to hit those energy efficiency KPIs, right? We've seen a 20% increase in the data that's gone through our network between 2020 and 2021 alone. So that's kind of the mechanics of how that works. And so based on the trajectory that we're on right now, we're pretty optimistic that by 2030, we'll hit that goal.

Okay. Super. And Jan, from a Jacobs perspective, obviously, a service company, you don't have the biggest carbon footprint in the world, but I know you're focused on reducing the carbon emitted by buildings and travel. Can you talk about where you folks are in decarbonizing the energy usage and reducing nonessential travel? And what are the incremental costs of achieving those goals?

Yes. So we have a carbon footprint that is about 20% Scope 1/Scope 2. And we're well on our way to getting that as close to 0 as we can and committed to doing that under our science-based target -- approved science-based targets. Our newest updated version of that is by 2040. And we're also committed to reducing our Scope 3 emissions as well. So 80% of Jacobs footprint is Scope 3, 60% of that is business travel and our own employee community. And when you have 55,000 employees today in 40 -- at least 40 locations in countries around the globe, that's a pretty substantial issue. We do know what it looks like to get that reduction down. That's one of the positives, I guess, of the last couple of years of us being in lockdown and not being able to really go out and travel and see our customers the way we have. But actually, working at their client facilities, many of us actually had truly employee commuting to our client sites even through that period of time. So we understand what that footprint needs to look like. In the period during COVID, we had about a 71% reduction in our business travel. And so obviously, in the year 2022, it's starting to bounce back as we've been actually able to come out and be at events like this and engage with our clients, et cetera. So we have a very, very focused set of circumstances that we're starting to work on now to look at necessity for business travel, really working with our clients. Some of our clients will demand it, but some actually are on their own journey as well. And we're part of their supply chain. So actually talking with our client, account managers, our project teams, et cetera, to really have the conversation of, do we really need the 5 people that you might have once had at your client site for a meeting? Maybe we have 1 or 2 of them and we have the rest of us be in a more virtual environment? That's -- it's more comfortable now because we've been doing that together for a couple of years. That is an essential strategy for us. Another strategy is obviously going to be looking at sustainable aviation fuel, those kinds of things, converting our rental car fleet agreements to 100% electric vehicles, those kinds of things, looking at hydrogen in some cases. It's a plethora of things that is on the docket. And over the course of the next 10 years, you're going to see us really lean into that in a really material way. It is not an inconsequential set of investments for us to go deal with. It will be self-funded from that standpoint. And it is substantial on an annual basis to make sure that we understand the bounce back, which we're measuring right now. We're about ready to finish our fiscal year 2022. So we'll understand the bounce back from a COVID situation, and then we'll be able to go work on an annualized basis through that period of time.

Super. And Jill, you and I have spent a lot of time talking about decarbonizing farming. Before we dive into a bit more detail on that front, can you talk about Deere's internal decarbonization targets and the cost to achieve those targets that you folks are thinking about as a management team?

Absolutely. Yes. So we've got science-based targets, goals of reducing our Scope 1 and 2 greenhouse gas emissions by 50% by 2030. That's on top of a reduction of 45% we've already achieved to date. So it's really not the first step, but challenging ourselves to take that next big step there. And then on Scope 3, our goal is a 30% reduction by 2030. Our emissions are roughly 99% Scope 3, 1% Scope 1 and 2. So our big opportunity to impact there is on Scope 3. And over 90% of our Scope 3 is the use of our products. So at John Deere, we produce a variety of equipment, everything from small lawnmowers that you see in residential areas to 800-plus horsepower, heavy-duty machinery that's out working in agricultural fields and on construction sites. So what that means, that journey to reduce the carbon intensity of our fleet is going to take a lot of different solutions. That's become very clear to us as we started to work on this. The smaller pieces of equipment, full battery electrification will make sense and is -- already makes sense based on where battery technology is at today. So we're working on that as one piece. Hybridization, which is essentially a form of efficiency, engine efficiency and doing that through -- whether that's through the R&D of our engine teams or through incorporating things like hybridization will be a core part of the strategy because for a lot of our equipment, an internal combustion engine is going to continue to be the primary propulsion source for quite some time. And then biofuels is a really big piece of the strategy, and that's everything -- we're looking at everything from ethanol to renewable diesel to methane and biomethane to hydrogen. So a lot of different things we're working on. That means a variety of different things we're investing in. So we really haven't put a number in terms of what is that going to cost in terms of investment. But one thing I will say is that at the same time we're thinking about all these areas we need to start investing in, we're really challenging our teams to then say, okay, as this is becoming more of our new strategic direction and what we're focusing on, how can we also start to look at the things that we don't need to be investing in anymore? So that -- this cost is not just purely incremental, but part of it is also replacing some of the spend we had previously and other things that are going to become less relevant over time.

And Jill, just a quick follow-up. The technologies that you folks are working on -- you mentioned hydrogen, biofuel. What's the most promising so far? And anything interesting that you folks can do because your customers are on farm sites?

Yes. Absolutely. So things like renewable diesel and biodiesel are really promising. And one of the reasons is those are drop-in fuels for the most part. You can drop that into a diesel engine today and run it with very little modifications required to the engine or to the piece of equipment. The piece that's really exciting about that for us is that our customers can grow some of the feedstocks that go into renewable diesel and biodiesel production. We were -- you were talking about sustainable aviation fuel. Almost every industry that has vehicles that are large and consume a lot of fuel and need a lot of power density is looking at sustainable fuels as part of their solution. And so one of the challenges that is occurring is a supply constraint. Part of that is infrastructure. The other part is the feedstocks to go into the production. So we're really excited about the opportunity for that to be a core demand source for what our customers are growing. And particularly as the interest in these fuels being as low carbon as possible continues to rise, looking at what can our customers do, what can we enable our customers to do that reduces the carbon intensity of those crops that are growing that could go into these fuels as well, thinking about a world where there's potentially a premium for a low-carbon intensity grain that goes into these fuels. So we're thinking about a lot of those dynamics. Part of it is looking at our fleet and how our fleet is powered, but the other piece importantly is what's the opportunity for our customers.

Got it. And Jan, at the beginning of this year, you folks have instituted a $50 internal carbon price, $50 per ton for unbillable travel. Can you talk about how that's impacted your team's decisions and carbon usage so far? Have you seen a direct impact? And what are you using the piggy bank for?

It's an interesting experiment. And I echo Jill's comments earlier here on the circularity of you enabling your customers so that you can go do the things that you're doing, those customers can grow the crops that they need to grow to get to the renewable sources. We will benefit from that, obviously. And our ability to impact our clients, we'll benefit from that as well. Jerry, the carbon pricing has been a very interesting dialogue across the company. It's one initial mechanism that we're starting only on our nonbillable travel side of the equation to start reinforcing to all of our client-facing folks and our internal corporate functions the emphasis of, do you really need to do this? Do you really need to travel or how do you travel? And how can that be more sustainable in the choices you're making? For example, someone could drive their vehicle, which is a fossil fuel-based vehicle, to a meeting from -- I live in Denver. They could go from our offices south of Denver downtown and actually drive that fossil fuel-based personal vehicle or they might choose to actually go take an Uber that actually guarantees you that it's going to be renewable fuel-based. So you can make that choice, and we can actually offset some of what's going on. Having that be at the front of our people's minds, all of our people's minds starts a process that actually we need to have more front of mind, have it be topical conversation. Whether the $50 per ton fuel charge is the right one or not at this point in time, the carbon price, that'll be up for debate internally as well. The piggy bank, as you referred to it, we have made a commitment that, that piggy bank will be used for self-investment purposes for some of the choices that we want to make on whether it's technology-based investments to help us decarbonize ourselves or other means.

And Jill, you spoke about meaningful Scope 1 and 2 reduction targets. Can you talk about the mechanism that you're driving that? Are you folks using your carbon price in your organization? Or how do you drive the decisions needed to drive the Scope 1 and 2 emissions reductions?

Yes. So we have -- we're taking baby steps, I would say, toward that. We have evaluated an internal price of carbon to help make those decisions. The first thing we're working on, though, is a mechanism -- we have a process in the company that any time there's going to be an investment, there's ROI calculations that need to be presented and there's reviews that happen. And so as part of that, the first step is requiring calculations of if it's a project that would impact Scopes 1 and 2, calculating the impact on the greenhouse gas emission so that there is a marriage of looking at the ROI impact and the sustainability impact of that project. So not necessarily applying a price to it yet, but just getting everyone in the company -- you spoke to just the mindset and thinking about this, that's the first step we're working on. And then I think, importantly, we see that as a future step where then it is actually a financial calculation that goes with your traditional ROI and you look at this holistically. And we're doing that across not just Scope 1 and 2, but our Scope 3 goals as well as our customer outcome goals, really making sure that the sustainability elements of what we call our Leap Ambitions are calculated and evaluated in terms of every project that's being funded.

Okay. Super. And a question for each of you, as you look at your current pipeline of new technologies, products and services, what single solution set are you folks most excited about in terms of driving a significant sustainable benefit to your customers and moving the needle for your business? Brigitta, would you mind starting the conversation?

Yes. Absolutely. Our mission as a company is to be the best in the world at connecting customers to the world. And for us, that is -- that's sort of our North Star, right, because today, you really can't do much without being connected, right? It is absolutely foundational to virtually every aspect of our lives. And so we are -- we have a goal to be -- to cover 99% of the households in the United States with 5G by the end of 2023, and that includes rural communities as well as small communities, which today represent about 40% of American households that in large part are poorly connected or, in some cases, even disconnected, right? So when you go back to this idea of that connectivity today in today's society is foundational, the impact on those communities is huge. And in many cases, T-Mobile is the only game in town for these guys. So that's absolutely transformational. And then when you think about from a business perspective, some of our -- how 5G is starting to revolutionize industry, going to agriculture, we were talking about that, we've seen some really, really interesting deployments and applications of 5G that have had huge sustainability impact. So a few examples come to mind. We're working with some apple growers in Washington to help them monitor their crop growth using 5G infrastructure. And what that means is that they're not just watering their apple trees, right, whenever they think it's necessary. They're watering them when they know it's necessary, when they actually need water as opposed to just putting them on a schedule. Those producers have been able to reduce their water consumption by about 50%. When you think about farming at a general level, by using AI, farmers can really -- can think about reducing -- or can reduce the amount of fertilizer, for example, that they use because, again, they're not fertilizing when they think they have to. They're literally understanding the content of the soil and what's needed and fertilizing accordingly. And so the impact is huge on industries like agriculture. We recently, I think, just last week announced a partnership in Oregon whereby we're leveraging AI to quickly identify where wildfires are starting and enabling the local government there and the infrastructure to quickly go to those sites, and in so doing, really reduce the impact of the wildfires, right? And then there's also like those really feel good stories. One of the applications that we use 5G was to help veterans from World War II that weren't able to travel to Washington, D.C. to go and look at the monuments honoring them, right? So those are -- that's like a feel good way to help our customers, but still, it's really, really important, and it's an interesting way to really think about that mission that we have as a company and to see the sort of the depth of the impact and the breadth of it.

Super. And Jan, can I ask you to weigh in on the topic? So pipeline of new technologies, products and services, what really jumps out at you as making a meaningful impact for Jacobs' customers?

So Jacobs, with -- is a very purpose-driven and ESG-aligned company. And so we really -- we just released our new company strategy earlier this year, and we know that the greatest impact we make in the world is based on the projects that we actually work on for our clients and their greatest challenges around the world. So lots of markets, lots of industries, but unifying themes that can underpin our strategy around climate response as an accelerator around data, data-enabled solutions, marrying those things together in a very consultative, advisory kind of capacity to partner with our clients on where they're trying to go with their journey and their mission and how does our purpose and alignment actually support them. So if you think about one of our major markets being transportation, as an example. There isn't a mode of transportation that isn't impacted by climate response as we're trying to deal with it, whether it's energy transition, whether it's truly decarbonizing. From a green-fleeting perspective, really taking anyone who has a fleet of vehicles and actually transforming that to a truly renewable net-zero fleet in a very quick time frame, that takes data-enabled solutions, which is why we've recently acquired something like StreetLight as one of the most enabled solutions and insightful technologies here in the U.S. and are now looking to take that and deploy that in other countries around the globe. So partnering our deep domain expertise in each of our markets with the data-enabled solutions that we have, leaning into those investments, partnering with them together and with our clients to be able to go drive those kinds of things. A second example in transportation arena would be around EV mobility. So partnering with a technology like Electreon, which is inductive road charging and actually bringing that from across the pond here into the United States and figuring out how to deploy that from an engagement perspective with a local DOT and having that be -- how they pilot it and see where that can go and then have that go from state to state. So those are 2 examples, but the transportation space alone for Jacobs is just a massive opportunity, whether it's highways, whether it's rail transit, whether it's aviation or whether it's the ports segment of the market.

Super. And Jill, from a Deere standpoint, what stands out?

Yes. So I think our impact to -- our ability to impact our customers' operations and make them both more productive and profitable as well as more sustainable and doing that through our precision technology journey is what's really exciting. I talked about our Scopes 1, 2 and 3 earlier. But really, if we stopped there, we would be missing a huge opportunity to impact -- agriculture, in general, globally is in excess of 20% of greenhouse gas emissions. And one example we like to talk about is on a typical North American corn acre, 75% of the greenhouse gas emissions come from fertilizer and -- as compared to less than 10% from the equipment operating on that. And so our equipment applies those inputs, those fertilizers, crop protection inputs. And so that's why we have goals around reducing our customers' nitrogen usage and crop protection usage because that is by -- going after those inputs, that's where we can really impact. And we can impact them both from an economic perspective as well as a sustainability perspective, which is really important to enable and drive the adoption of these tools. We need to make sure that, first and foremost, it makes sense for our customers' businesses as we do that. So there's 2 key technology road maps we're on that I'm most excited about here to enable that. One is what we call our Sense and Act platform, and that is computer vision and machine learning, and the other is autonomy. So on Sense and Act, we released a product this year. It's a sprayer, and it goes through the field, and it recognizes, it senses whether a plant is a weed or a healthy plant, and it applies herbicides only to the weeds. So essentially here, what that allows is -- historically, farming was field by field management. And if you had an input, you just applied it to the entire field. We're really working to get and enable our customers to a point where they can manage plant by plant and really sense and understand what each individual plant needs and apply only the inputs and take the actions that, that plant needs. See & Spray is our -- really our first step on that journey where this machine can go at high speeds through the field and execute that and only precisely target the weeds and thinking about a world where there are so many other things that a machine like this can sense in the field and then react and do something with what it's sensing. So whether that's other inputs, fungicides, insecticides, a lot of different things, whether it's nutrient management, there's a variety of ways you can utilize that to be more precise and reduce the environmental impact of that step of the process. Full autonomy, we released a fully autonomous solution in January at CES. That's our first step on the autonomy journey. And that's really -- in agriculture, a lot of -- there's a lot of challenge around, first of all, labor availability, but then having the amount of labor you need to get the job done at the precise time it should be done. And with autonomy, that unlocks the ability of having machines executing jobs at the exact time it needs to be done without -- you still have your people working on the farm and the farming operation, but they may be needing to do other higher-value tasks at that time. You can still get that job precisely done, which is really, really important at -- in managing all of this and making sure that the right inputs are applied, only the amount that you need at the right time.

Yes. It sounds like there's going to be some Netflix streaming going on, which is -- for T-Mobile as well. Brigitta, one of the T-Mobile initiatives that jumped out at us was your targets to provide Internet and phone access to up to 10 million underconnected households with school-aged children over a 5-year time frame. Can you talk about the performance so far relative to that target? And how are you funding it?

Yes. Going back to this notion, it's a fact that connectivity is absolutely vital in our society today. You really can't get very far. You can't apply to a job. You can't make calls. You can't -- education, right? You can't go to school without being connected to the Internet. When we sort of looked at the enormity of the world that we impact and the responsibility that we have to not only provide connectivity, but to ensure that everyone everywhere is connected, we thought about the sort of the myriad of opportunities that we could tackle. And to us what really, really set out the most was education, right? Education is foundational. Education is one of those things that should not be limited by income. And so when we set out to address that problem -- I'm kind of going back to T-Mobile -- true to T-Mobile ethos -- we set a goal to not only address the problem, but to fundamentally bridge and solve that divide, right, between having -- between kids that don't have access to connectivity and kids that do. And so in 2019, we announced the goal to connect 10 million kids with connectivity by providing free or significantly reduced connectivity devices and then at-cost laptops. And the reason we chose 10 million is because when we were modeling the issue, 10 million is what we really came down to as the families that needed the connectivity and that didn't have it. Fast forward to when we actually launched the program in 2020, that was the start of the pandemic, which I think really brought to the forefront how critically important connectivity was to virtually every single kid in this country. We've -- we're going on 3 years of the program. Actually, like 2.5 years of the program. We are at over 4.5 million families with household -- with students connected. We've invested about $3.2 billion into the program so far and have our sights on that 10 million. So it's something that we're incredibly proud of. It's our marquee program. It's where we're investing the majority of our philanthropic dollars. Yes, it's just something that we're really, really proud of and that we're seeing the impacts of already in terms of the effect that it's having on kids.

And a huge contribution in New York City, in particular, so thanks to the team.

Yes. Especially right when the pandemic started, right?

That's right. And Jan, your -- at Jacobs, your green CapEx portfolio is about $6 billion in revenue run rate today. Can you talk about what's been the growth trajectory for the related businesses over the past couple of years? And what level of growth are you anticipating based on the project quoting activity, et cetera, over the next couple of years?

Yes. That $6 billion, it's about 45% of Jacobs' total revenue, last fiscal year, we tagged as ESG aligned. We believe that to be a conservative value. And as we look at where we're headed underneath our new strategy that we've launched earlier this year, we really see 4 of our major markets being huge opportunity sets for us. Yesterday, Goldman Sachs hosted a Water Symposium. So I'm not going to cover that because it was a big topic of discussion yesterday, but everything in the water sector [indiscernible] impacted as we see around the globe. Some places have too much water, some have too little. Obviously, there are holistic and circular solutions to that from a OneWater approach. So that's a massive growth opportunity around the globe for us. I mentioned transportation. Transportation decarbonization is just one of the most essential things we need to go do on the planet. Jacobs plays in all of the major modes of transportation and has important technology and transportation planning. I mentioned StreetLight. Having that transportation planning insight actually is truly a benchmark piece for us to go play across those modes of transportation and especially with intersectionality. When you deal with intermodal transport solutions, and we have lots of clients who have that. You think about an airport. It's not just an airport. You have rail and transit facilities. You have cars that you have to go deal with that are increasing from an electrification perspective. So those kinds of things we see as a massive opportunity. Green fleeting here in New York. We're working with the MTA to actually transform the MTA's fleet -- entire fleet, which is one of the biggest in the world, to a net-zero fleet as quickly as possible. So those kinds of solution opportunities are huge for us and really rely on some of our program management capability. To actually augment the technical aspects of the domain expertise, how we actually apply those solutions in a programmatic way is huge. In the energy and power space, which is another one where programmatic solutions are absolutely required, dealing with energy transition, whether it's local, whether it's a private sector client who has a facility, a campus, a facility that they're trying to transform and thinking with them about how to take that from a place-making perspective and infuse energy transition into it and holistically think about not just today, but how can they think about their future and where they're trying to go. So it really marries the city's and place's market orientation with an energy and power orientation. Transmission and distribution on a macro scale. I think we heard one of the prior speakers talk about trying to get energy to Singapore. While there are huge transmission cabling opportunities that would take renewable energy from the South, literally, the South like New Zealand, Australia and get it up to Singapore, those kinds of projects are ones that Jacobs is actually engaged in and looking forward into the future. And I guess the last piece, Jerry, I would articulate is in the advanced manufacturing space. Jacobs is really well known supporting electronics and semiconductors and, with the energy transition opportunities here, has moved into battery manufacturing to make sure that we upskill and help deploy that kind of technology to make it more accessible, quicker at a lower cost so we can actually fuel -- literally fuel our future in a different way. So huge opportunities in many of our markets.

Super. Jill, food availability, huge issue even before the Ukraine war. Can you talk about what Deere's precision ag product pipeline over the next decade could do in terms of driving higher yields to essentially help improve food availability globally?

Yes. So when we look at our incremental addressable market opportunity, looking at improving yield is a big part of that. About 40% of that opportunity is improvement of yields. One of the things we work on a lot is the concept of uniform emergence. And so this is when you plant these millions of seeds in the field. If some of those seeds emerge from the soil before others, they'll steal sunlight and nutrients from those other plants. And so the idea that -- the goal is to get all of those plants to emerge as uniformly as possible to give all of them the chance to get to the ultimate yield potential. And so that's a lot of different technology tools that we're working on in terms of how you plant, the depth, what you do in terms of understanding the soil moisture content and the nutrient content and how you make adjustments as a result of that. So that's one piece of that. A couple of other things as you get into the conversation of food security and production and going back to some of the comments earlier about biofuels, one of the interesting opportunities we see with some of the biofuels is that there are certain cover crops that create oilseeds that can be used as feedstocks in renewable diesel and biodiesel production primarily. And so we're partnering with some other companies to do some pilots around helping growers grow some of these oilseeds through cover crops that they haven't done before. This can be risky when you start to incorporate new practices into your ground and into your production system that you haven't before when you're a farmer. And so we want to partner really closely to understand, okay, how is that impacting the yield then of your primary crop? And what can Deere do to help solve some of those challenges for producers so that we can continue to not only grow the yield of the primary crop, but how can we, through cover cropping and other opportunities, create more availability of feedstocks? The other beautiful thing about cover crops is they're one of the primary ways to enhance more carbon sequestration opportunity in the soil. So it's a great sustainability benefit for the overall practices of that production system as well. The other piece that we're looking at a lot is how ethanol can potentially be a solution in diesel engines. You don't typically see ethanol used in that way, but we invested in a company called ClearFlame that's looking at retro -- I shouldn't say retrofitting -- probably retro-innovating diesel engines to be able to work with ethanol and the power density dynamics of ethanol because as on-road goes to more full battery electric, that means that we have the opportunity to have ethanol used in other spaces more, and we want to make sure we're optimizing that. So we're looking at a lot of different dynamics to make sure that food productivity continues to have robust availability and that we're also creating innovative solutions on the fuel side as well.

And you mentioned $60 billion addressable market from improving yield. What level of yield improvement would the farmer achieve in that if you hit that target?

Yes. I don't know that we've actually sort of specified a certain percentage yield improvement. Over time, you've seen sort of a steady growth in yields -- certain percentage points per year. And I think you can expect to see that continue. And hopefully, through some of these technologies that we're bringing, we can move the needle even further. But we set those goals in February of this year. A lot of great work being done. So I think as we go over time and start to bring some of these solutions, we'll be able to start to really quantify what's that impact over time, but still early days to put that out there.

So Jill, I'm seeing a lot of opportunity here between 5G and the work that you're doing. So I know somebody who has really good 5G.

And that's -- I think that's a great point because as we're on this journey, the thing that's becoming more and more clear is that we all have to come together and partner. That's the only way we solve these gigantic challenges we have, is if we all work together. So...

So much intersectionality, I think, between our work.

Super. Well, on that note, thank you very much for joining us, everyone. Please join me in thanking the panelists for their time and insights. Thank you.