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Finance

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?

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 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 – 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

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

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.

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.

Definitions Finance Globalisation Supply Chain

The True Cost – Hidden Costs x Sustainable Development: Transport

January 18, 2022

This post is part of a series where I look at and into the true cost of certain goods and services. This time I’d like to look into the True Cost of all types Transport and Mobility: road, rail, aviation and water. 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 transport we use globally, both for passengers and for freight? Or if you prefer: how do different types of transport compare to each other when it comes to ‘collateral damage’? Spoiler alert: It is really quite complex and rather diverse. And: public infrastructure investments and maintenance costs play a significant role in it.

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.

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 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 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

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 – 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.

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 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.

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 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.

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

Finance

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

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

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

The apparel industry: An improbable leader in True Cost Accounting

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

Where risk and opportunity meet

Balance Sheet Shadow: The overlooked impact of corporate cash holdings

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

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

The True Cost – Hidden Costs x Sustainable Development: Transport

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

Energy Industry & Carbon Trajectory: A tale of two Trajectories

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

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

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

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

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

Apparel Industry & Carbon Trajectory: Throw in the Towel?

Straight Talk: ESG is Not ‘Sustainability’

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