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Finance

The Next Wave: Biodiversity (9) – Habemus suasiones! Recommendations we have!

October 11, 2023

After some results at the COP in Vancouver, as well as the release of the first ever Science -Based Targets for Nature (SBTN) – finally (!) the recommendations by the TNFD (Task Force for nature-based financial disclosure) have been released. So the question obviously is, how do these targets address the 5 key drivers of biodiversity erosion eventhough it is only about reporting? Are the TNDF recommendations worth their salt?

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.

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.

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 ...

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.

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.

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.

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 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 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?

Definitions Finance Globalisation Supply Chain

The True Cost – Hidden Costs x Sustainable Development: Energy Generation

January 11, 2022

This post is part of a series where I look at and into the true cost of certain goods and services. When in the previous post I looked at subsidies and the True Cost (associated with the True Price) for oil and gas, this time I’d like to look into what we know about the True Cost of Energy. Not just about fossil fuels, but indeed across the breadth of the energy spectrum. The question therefore is: What are the total costs – the True Cost, i.e. including what is commonly called ‘externalities’ – of the different types of energy we use globally? Spoiler alert: It's very interesting - and also a bit suprising and counter-intuitive.

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 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 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 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.

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.

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.

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?

Definitions Finance Governance Labels

The Next Wave: Biodiversity (5) – Targets, Methodologies, Tools

November 23, 2021

Measuring Biodiversity, in terms of baseline (status quo), progress, and deliverable targets, is not a simple thing. Collateral damages are a serious risk.At the same time though, some companies use outcomes of tools, which where never intended to deal at all with biodiversity, as proxy vehicles. This of course raises the question: Where are we with tools, programmes, and measurement systems for biodiversity? Hereafter a look across what I found to be having (some) teeth - also in comparison to the more popular climate change topic. These are: TNFD, SBTN, as well as two management tools that might be helpful, FFFBB and BIA. Ask: If you are aware of others initatives 'with teeth' as of of writing (November 2021): do let me know and I’d be happy to list them also. Thank you!

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

Finance

The Next Wave: Biodiversity (9) – Habemus suasiones! Recommendations we have!

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

Energy Industry & Carbon Trajectory: A tale of two Trajectories

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

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

ESG assessments: Finance’s Darwinistic Industry Lens?

Making a difference – or not?

Measurement ≠ Data ≠ Information ≠ Knowledge ≠ Action

Apparel Industry & Carbon Trajectory: Throw in the Towel?

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

The True Cost – Hidden Costs x Sustainable Development: Energy Generation

Balance Sheet Shadow: The overlooked impact of corporate cash holdings

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

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

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

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

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

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

The Next Wave: Biodiversity (5) – Targets, Methodologies, Tools

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