From research we know that boards of directors lack skill and expertise when it comes to ESG and Climate Issues.
But: certainly the asset owners and investors do see that point, and are worried about boards taking tangible action that would safeguard their assets?
This is precisely the question that ShareAction asked in their most recent report.
The insights are sobering. Particularly the Big Three asset managers (BlackRock, Vanguard, State Street) have a miserable voting record during AGM season: both, for the number of votes cast, as well as for their stance against most resolution on Climate Change and Human Rights.
The good news: it rarely has been so simple to identify Greenwashers. Thanks to publicly available filings about votes cast in AGMs of listed companies.
In July 2018 Australian Billionaire James Packer resigned from 24 boards in total where he held directorships. His spokesman in a statement announced that Packer was “suffering from mental health issues” and was seeking treatment for depression. Packer is not a lone case.
Climate Anxiety can be a trigger to mental health challenges - for fear of the future and well-being of loved ones. Creating boards that are able to open up about doubts, challenges and concerns is like adding a booster gear to their functioning, reaching deep into an individuals motivation and passion. It also could add a whole new dimensions to professional discussions and help to ask harder, but equally necessary questions to the executives running the day-to-day business.
Diversity and Inclusion is a highly relevant topic not ‘just’ because it is all about equality and justice. But as long as entire parts of our global population remain disenfranchised, and desperate to just survive from day to day, tackling challenges - and in particular Climate Change - that affect all of us, indiscriminately, remains impossible. Boards of Directors set out the "Tone at the Top', also in matter of diversity and inclusion. In fashion companies, what exactly is the tone, the music, that they are creating?
How do you make ‘sustainability' tangible?
The usual answer is – unsurprisingly – a ‘well, it depends’.
Which it evidently does.
Unfortunately, good case studies are extremely rare to come across.
Hence, when I stumbled across such a gem in one of the primary Swiss news papers, I jumped at the opportunity to summarise it for this blog.
Uniqlo's corporate Diversity and Inclusion policy in number.
2nd of an article series that analyses Uniqlo and why it joint forced with Bangladesh's Grameen Bank.
This blog uncovers the surprising, and mostly overseen fact, that corporate cash holdings in banks more often than not have a relevant carbon footprint. Relevant enough for a company's own Scope 3 and overall footprint. We discuss actionable steps from the Green Action Cash Guide, and the type of support the guide gives – but also lacks. Topics touched upon are: board support, data gathering, and strategies for shifting to climate-friendly banking partners.
We all interact frequently with SMEs of different types, characters, and offers. Yet there are two types of such businesses. Those where 'the spark' is graspable: Their vision, raison d'etre, motivation, aspiration, commitment. And then those, who at best surf the waves of third party demands. Content to be 'victims' instead of taking the courage to forge their own irons. A never ending fascination.
Our economic well-being relies on indefinite growth in a finite system, raising sustainability concerns. But, if we dared to ask: What would the world lose if your company disappeared? Companies might find themselves in a totally novel position on how to justify their existence: Through assessments of their overall impact on society and the planet, or indeed having to advocate how their business case positively contribute to all facets of life.
It is end of March / early April 2020 as I write this. Corona (Covid19) increases its grip onto the world. Draconian, tough policy measures are being put in place limiting people's lives ... and rattling the global economy.
Could it hall happen again in the future? And if so - in what way?
Large companies and institutional players are challenged to assess and calculate their carbon footprint. But they typically have the means to hire experts – in-house or consultants – and buy licenses of useful tools.This applies similarly to larger-sized SMEs. But what about distinctly small companies or indeed even individuals? How can they get a guesstimate on their carbon footprint, and possibly even some pointers how to do better going forward? Hence, here a short list of such calculators, both for individuals as well as for small companies.
“Green to Gold – How smart companies use environmental strategy to innovate, create value, and build competitive advantage” by D.C....
In mountaineering there are three distinct methods to handle the rope. Each technique has some distinct application characteristics. And as a consequence, a direct impact on the team work, team effectiveness - and even survival. What can boards learn from alpine roping techniques?
AI has the potential to transform corporate responsibility by handling data-heavy tasks like reporting or data and KPI management. It hence can contribute to helping companies 'being less bad'. However, its potential to support professionals and companies in driving real positive impact is still developing. This post introduces AI’s current potenntial in corporate responsibility and sustainability. In upcoming blog posts we'll explore specific applications: in sustainability reporting, supply chain management, and integrating financial considerations with sustainability impact.
We need new business models that are not predicated on selling more stuff to more people.
And because in the 'Here and Now', there is truly not much more to say, I could finish with the above quote.
Except that: Those ‘new business models’ are not reality. Far from it.
About the Role of the Board in the 'Why'.
I had the chance to speak at the Green Business conference last week in Istanbul about future market scenarios for the fashion industry. The conference is an event of the Sustainability Academy in Turkey.
Key highlights from the event
‘System positive’. The latest term I came a cross in the finance world, and which intends to identify business that are particularly well set up to survive the tribulations to be expected in the decades to come. Immediately the cynic in me asks: Another addition to the sustainability bullshit bingo?
And yet: the 5 questions proposed for scrutinising companies are very sharp, very relevant and very insightful.
They only fall short of one: Will the company thrive within or even thanks to the Doughnut Boundaries?
One of the things usually approved at the constituent board meeting after every company AGM are the board of directors' ‘Rules of Procedure’. What looks, and is often perceived, as a formality though, at close looks carries not just formal weight, but indeed formulates – directly or between the lines – the duties of the board.
What do these rules typically enshrine - and what not?
In the luxury segment, production focuses on highly complex garments and low order volumes that might involve just five pieces per style which makes sourcing very challenging. The approach currently pursued by European high-end apparel brands to address the problem is that of ‘High End Fashion Cluster‘.
Uniqlo & UNHCR's Global Clothing Recycling Initiative.
3rd of an article series that analyses Uniqlo and why it joint forced with Bangladesh's Grameen Bank.
‘I feel like a fraud’. This is what employees of clients I work with often voice. It is usually at the point of time when strategy is moved to implementation. Hence: when it all gets concrete.
The statement is an expression of the feeling of overwhelm that comes with delving into sustainability issues, acquiring new knowledge and terminology, and in addition having to adapt ones habitual practice of work.It also happens once the low hanging fruits are gleaned, everything gets much more difficult.
It's the 'valley of despair'.
Why is it important to pay attention to it? And what can leaders do about it?