Random

Finance

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 ...

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 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.

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.

Biz Strategy Finance Opinions

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?

Definitions Finance Governance

The Next Wave: Biodiversity (6) – It was a 30% Christmas Present

January 10, 2023

In time for Christmas, one of the most historic inter-governmental landmark decisions hit the headlines: The 'Biodiversity' COP (COP15) had actually achieved 'something'. 200 countries had agreed on 4 Goals and 23 Targets. Some of those are a bit more concrete than others, the headline goes roughly like this: “By 2030: Protect 30% of Earth’s lands, oceans, coastal areas, inland waters; Reduce by $500 billion annual harmful government subsidies; Cut food waste in half.” A closer look at precisely those 23 Targets and the specificity of the measures they contain.

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.

Brand Review Finance Globalisation Supply Chain

Uniqlo’s joint venture with Grameen: What is its structure?

November 23, 2010

Strategical setting, structure and goals of the Uniqlo-Grameen joint venture. 6th of an article series that analyses Uniqlo and why it joint forced with Bangladesh's Grameen Bank.

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.

Definitions Finance Globalisation Supply Chain

The True Cost – Tax Money x Sustainable Development: Oil & Gas

January 4, 2022

This is the first of a series that will look at and into true cost of certain goods and services. Cash subsidies thereby is one component, but certainly not the only one relevant one – indirect subsidies (e.g. in the form of environmental degradation or similar) need to be considered also. In this particular post, I’d like to focus on Oil & Gas subsidies, fossil fuels' True Cost, and what we know about these. What we already also learn: comparing apples to apples won't be easy. True Cost calculations are only ever 'best available efforts', and much data remains missing or speculative at best. This is an issue we will encounter again also once we'll look into renewables, or indeed other kinds of industries outside of energy.

Finance Governance Labels Supply Chain

The Next Wave: Biodiversity (8) – Habemus propositum! Targets we have!

July 18, 2023

After some results at the COP in Vancouver, as well as efforts by the TNFD (Task Force for nature-based financial disclosure) – we finally (!) got the first ever Science -Based Targets for Nature (SBTN). It is a first release, however. So the question obviously is, how do these targets address the 5 key drivers of biodiversity erosion? Are the SBTNs worth their salt?

Consumer-ism Finance Globalisation

The True Cost: Tax Money x Sustainable Development: The Fishing Industry

February 8, 2022

Over 100 million people rely on inshore subsistence and small-scale artisanal fishing for their daily food and livelihood. But it’s not them that we’ll talk about in this post – because they are the unfortunate ones at the end of the short stick in the global game of industrial subsides. In this post we talk about the industrial fishing industry, the subsidies that go into it, the really sticky WTO negotiations to make away with them. It's not all doom and gloom. There is hope - just that it comes from elsewhere than governments.

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

Where risk and opportunity meet

December 5, 2012

Can we say that modern businesses prefer long-term over short-term? For sure the business environment is more and more rewarding companies that think ahead and do not fail to consider existing or potential risks. What has happened in finance is striking and is based on the concept that long-term benefits outweigh the short-term pain.

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.

Brand Review Finance Supply Chain

Uniqlo’s joint venture with Grameen – What is the ultimate aim?

December 11, 2010

With Grameen, Uniqlo has found the perfect partner to do business with the BOP. Last of an article series that analyses Uniqlo and why it joint forced with Bangladesh's Grameen Bank.

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

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.

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.

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

Finance

Energy Industry & Carbon Trajectory: A tale of two Trajectories

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

Straight Talk: ESG is Not ‘Sustainability’

Make it Operational: Transparency, Tangibility, Relevance

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

The Next Wave: Biodiversity (6) – It was a 30% Christmas Present

Measurement ≠ Data ≠ Information ≠ Knowledge ≠ Action

The apparel industry: An improbable leader in True Cost Accounting

The True Cost – Tax Money x Sustainable Development: Oil & Gas

The Next Wave: Biodiversity (8) – Habemus propositum! Targets we have!

The True Cost: Tax Money x Sustainable Development: The Fishing Industry

Apparel Industry & Carbon Trajectory: Throw in the Towel?

Where risk and opportunity meet

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

COP28: An Important Step – Just Differently So

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

Balance Sheet Shadow: The overlooked impact of corporate cash holdings

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

Categories

Categories

Join the Newsletter

Join the Newsletter