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.
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.
‘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?
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.
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.
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?
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.
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.
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.
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.
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.
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