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Finance

A ‘system positive’ company. Bullshit bingo or separating the wheat from the chaff?

November 17, 2020

‘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?

Biz Strategy Consumer-ism Finance

A CO2 baseline for all: Tools to footprint, for Individuals to Small Enterprises

February 1, 2022

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.

Biz Strategy Finance Future Tech

AI x Sustainability (4): The Role of AI in Integrating Sustainability into Financial Balance Sheets

December 10, 2024

How can AI help connect the worlds of sustainability/ESG data, and that of company financials? ESG is typically considered a mere cost - yet: this perception stems chiefly from a lack of integration of mutually beneficial data of these two worlds. With better approaches to cost accounting, to performance analysis, as well as using predictive analysis relate to trends, legislation and asset management, the ability of AI to integrated diverse and complex data sets may precise be the pathway to shift that needle.

Biz Strategy Finance Globalisation

Apparel Industry & Carbon Trajectory: Throw in the Towel?

December 15, 2020

Carbon – together with biodiversity – is one of THE most critical dimensions among the Planetary Boundaries. Because the already existing overshoot is putting our civilisation at risk. So far nothing new under the sun. The big elephant in the room is of course: How do companies perform right now in terms of their carbon footprint? And: Do they have at the least commitments to work on a Paris Agreement trajectory? I answer these questions. Spoiler Alert: Some 'villains' are doing rather well. So well in fact that they are leading the pack.

Biz Strategy Finance

Balance Sheet Shadow: The overlooked impact of corporate cash holdings

June 24, 2024

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.

Book Reviews Brand Review Finance

Better Business Series: Experts’ Review of Puma’s Environmental Profit & Loss Accounts (E P&L)

December 12, 2012

On December 14th, PPR published the expert review report on Puma’s Environmental Profit and Loss Account (E P&L). The panel of experts that had been commissioned to undertake the review brought some of the most eminent names in the industry together, among them John Elkington, Peter Bakker, or Pushpam Kumar.

Biz Strategy Finance Opinions

Carbon Pricing: A Dilemma to happen. Or: When Ethics meets Market Economy

December 21, 2021

Pricing the ton of carbon is a key matter – more so as an increasing number of companies aim at publicly claiming carbon neutrality. Carbon hence has a price – and this raises the much discussed question: What is a fair (or better: ‘correct’) price for carbon? In this post I present a glimpse of some of the challenges and realities related to the topic. It leaves us with the question: What went wrong in the current system that fundamentally asks us to choose between having to monetarily price natural and societal resources, and a fair, equitable access to these resources specifically for hard hit communities? The question alone should not be even asked. And yet it seems that’s what we’re left with given the current time and age.

Biz Strategy Finance

Climate Change & Proxy Vote: A moral issue indeed – for the finance industry

December 8, 2020

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.

Finance Governance Opinions

COP28: An Important Step – Just Differently So

January 3, 2024

COP28 yielded mixed results, featuring some historic 'firsts' such as a fossil fuel phase-out commitment, a $700 million loss and damage fund, the recognition of nuclear energy, and (this is huge!) a pointed spotlight on food systems' role in adaption. Most of the old challenges though remain: It's all carrots and no sticks. Which shows in the continued absence of enforcement of Climate Targets or their stringency, and the eye-level conversation with Global South nations.

Biz Strategy Finance Governance

Dropping the Ball: How sustainability (ESG) competent and capable are boards?

December 22, 2020

Expertise is a key discussion topic when it comes to board composition. Not only during the hiring process, but also when looking at the tenure in and renewal processes of board. According to a recent article by Board Agenda: a number of risks that have raised Directors & Officers concerns, and even litigation. These include [...] climate change and environmental issues; the #MeToo movement and other societal risks and merger objection litigation. Hence the question is: How sustainability (ESG) savvy and capable are boards?

Biz Strategy Finance Globalisation

Energy Industry & Carbon Trajectory: A tale of two Trajectories

February 23, 2021

Carbon – together with biodiversity – is one of THE most critical dimensions among the Planetary Boundaries. Because the already existing overshoot is putting our civilisation at risk. So far nothing new under the sun. The energy sector is the by far most impactful sector: directly and indirectly our carbon footprint depends on how they fuel our civilisation. The big elephant in the room is of course: How well are badly do energy companies perform right now in terms of their carbon footprint? And: Do they have at the least commitments to work on a Paris Agreement trajectory? I look into these questions. Spoiler Alert: The results are pretty much in line with expectations. Yet: among the innovators, not everyone does perform as well as they probably should ...

Finance Governance

ESG assessments: Finance’s Darwinistic Industry Lens?

October 12, 2021

The finance industry does have its share to play in a ‘just transition’ to a low carbon and more ‘doughnut-ty’ economy. This is a given. I have written repeatedly about it. In most contexts, the finance industry is characterised and promoted as a ‘driver’ of said transition. But is that really so? After all, the by far and distant most frequent tenor in ESG (the finance industry’s term for all things ‘sustainability’) is predominantly about risk. With that in mind, let's tell it as it is: The finance industry’s ESG discourse is opportunistic. As indeed all it’s actions and views have been, and as indeed the the industry’s clockwork is set out to be and function. Opportunistic.

Biz Strategy Finance Governance

Finance Industry & Carbon Trajectory: Black Holes with a Sparkle of Hope

January 12, 2021

Recently we have learned how the Board of Directors of the 20 largests banks (under)performs when it comes to ESG, and the consequences this has on their future fit investments. This raises evidently the question: How do these 20 banks perform right now in terms of their carbon footprint? And: Do they have at the least commitments to work on a Paris Agreement trajectory? I answer these questions. Afterall: Carbon – together with biodiversity – is one of THE most critical dimensions among the Planetary Boundaries. Because the already existing overshoot is putting our civilisation at risk. So far nothing new under the sun. Spoiler Alert: The results are pretty much in line with expectations. ESG-experience on the BoD does make a difference.

Biz Strategy Finance

Inevitable Policy Response: The day when politicians will kick into gear (I/III)

March 4, 2020

We all can see it happening before our eyes: Despite the Paris Climate Agreement to a climate trajectory of ‘well bellow’ 2 degrees (hence where the 1.5C number stems from) – the trajectory is not anywhere near that number. The Inevitable Policy Response (IPR) is the response by governments and legislators around the globe in taking action – hence enacting laws – in line with the 1.5 Degree climate goals.

Biz Strategy Finance Future Tech

Make it Operational: Transparency, Tangibility, Relevance

May 18, 2021

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.

Finance Governance Opinions

Making a difference – or not?

January 14, 2016

The COP21 Climate Agreement that was reached this past December in Paris, and which comes into effect in 2020, is a milestone in global sustainability efforts. Yet - are we doing enough? What is enough?

Biz Strategy Finance Governance

Measurement ≠ Data ≠ Information ≠ Knowledge ≠ Action

May 4, 2021

You can't manage what you can't measure. This often cited quote by Peter Drucker lies at the heart of many things: change management, quality management, staff diversity, environmental footprint, CO2 output … you know it. This is why many millions of dollars, and countless hours, have been invested in creating suitable measurement tools. It's just that: Measurement ≠ Data ≠ Information ≠ Knowledge ≠ Action.

Biz Strategy Circularity Consumer-ism Definitions Finance Materials

Straight Talk: ESG is Not ‘Sustainability’

November 3, 2020

Financial accounting is rather ill suited as well as ill equipped to deal properly with a system that has finite natural resources. Else, why would it not record the environmental losses that come with e.g. extracting bauxite? And what about ESG? Well it turns out, ESG is just more of the same (growth) just in a shade of ‘green’. It is for a reason that the Global Materials Footprint has kept growing in alignment with the much coveted GDP growth. Despite all green efforts. ESG – investing in ‘greener’ tech and businesses – is definitely NOT ‘Sustainability’ as we need it.

Finance Globalisation

The apparel industry: An improbable leader in True Cost Accounting

August 23, 2012

Ture Cost Accounting (TCA) requires the quantification of not only the environmental services of our ecosystem, but also the social benefits corporations rely their activities on. With Puma's Environmental Profit & Loss Accounts, the EcoIndex Beta, and the Higgs Index, the apparel industry is at the leading edge in this area.

Finance Governance

The Next Wave: Biodiversity (1) – Biodiversity meets Financial Reporting Regulation

October 26, 2021

Europe is, no doubt, a checker board in regards to environmental (and other) legislation and jurisprudence. While the European Union is is hammering out the different fence poles related to its Green Deal and Green Taxonomies some other countries run ahead with their own locally applicable laws. One law that is considered 'innovative' since its publication - the French 2019 Law on Energy and Climate, and its 2021 implementing decree - are worth a somewhat closer look. These pieces of law focus - once more - predominantly on financial industry players and reporting. The innovative part is the explicit inclusion of Biodiversity impact reporting. What are the bets of them beeing at the root of change?

Future Fit Industries of 'Stuff': Governance, Responsibility, and the Age of Doughnut Economics

Finance

A ‘system positive’ company. Bullshit bingo or separating the wheat from the chaff?

A CO2 baseline for all: Tools to footprint, for Individuals to Small Enterprises

AI x Sustainability (4): The Role of AI in Integrating Sustainability into Financial Balance Sheets

Apparel Industry & Carbon Trajectory: Throw in the Towel?

Balance Sheet Shadow: The overlooked impact of corporate cash holdings

Better Business Series: Experts’ Review of Puma’s Environmental Profit & Loss Accounts (E P&L)

Carbon Pricing: A Dilemma to happen. Or: When Ethics meets Market Economy

Climate Change & Proxy Vote: A moral issue indeed – for the finance industry

COP28: An Important Step – Just Differently So

Dropping the Ball: How sustainability (ESG) competent and capable are boards?

Energy Industry & Carbon Trajectory: A tale of two Trajectories

ESG assessments: Finance’s Darwinistic Industry Lens?

Finance Industry & Carbon Trajectory: Black Holes with a Sparkle of Hope

Inevitable Policy Response: The day when politicians will kick into gear (I/III)

Make it Operational: Transparency, Tangibility, Relevance

Making a difference – or not?

Measurement ≠ Data ≠ Information ≠ Knowledge ≠ Action

Straight Talk: ESG is Not ‘Sustainability’

The apparel industry: An improbable leader in True Cost Accounting

The Next Wave: Biodiversity (1) – Biodiversity meets Financial Reporting Regulation

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