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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.

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

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 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.

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 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

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

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 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

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.

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?

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 Governance

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 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.

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!

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.

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

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?

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

Finance

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

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

Where risk and opportunity meet

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

ESG assessments: Finance’s Darwinistic Industry Lens?

Balance Sheet Shadow: The overlooked impact of corporate cash holdings

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

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

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

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

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

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

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

Apparel Industry & Carbon Trajectory: Throw in the Towel?

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

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

Making a difference – or not?

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

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