Peloton Bike Race
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.
Greenwashing
Greenwashing is defined as 'the expression of environmentalist concerns especially as a cover for products, policies, or activities'. There also exists Diversity-washing, Governance-washing, or skill-washing for example. In itself a truly nasty thing, there is an unexpected upside to Greenwashing however: it will come back to haunt the greenwasher. Maybe not fast, but no doubt steadily. Just like the tortoise won the race against the hare.
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.