All about the wider issues that come out of the sustainability transitions including human rights
According to an article in the Financial Advisor Magazine, asset managers trying to sell funds in Europe are finding it “increasingly difficult” to do so unless their products are registered as ESG positive - quoting a study by analysts at Goldman Sachs. At one level this should be a cause
Artisanal mining is a key sustainability challenge. But it's importance goes beyond this. The solutions found can also help sustainability professionals as they look to address the wider financial issues faced by mining companies.
It is increasingly understood that human rights is no longer just a values and ethics question. It's also now very much an investing issue, one that can have a very direct impact on a company's long term value creation.
Sustainability is not just about mitigation (actions that reduce future risks). In some cases the challenge is much more immediate, we also need to invest in adaption. Helping us to cope with events that are happening now.
A company’s supply chain is inexorably connected to its successes and its failures. It can have material impact on value.
As public opinion leads, legislation follows, at least in Europe. The most recent legislative move is on deforestation, but it's just one of a wave of new laws and regulations. And behind legislation comes litigation.
We often read about transition risk and stranded assets, but what does this really mean, and how does it get reflected in the financial statements and value of companies? The short answer is - much more slowly than you may think.
Unless you have been living off grid, you will know that one of the defining debates around ESG and Sustainability relates to engagement - by which we mean interacting with companies to get them to change their behaviour.
One solution is to formalise the ASM sector, making it possible for the miners to legally earn a living. This is a good solution, but we need to recognise that each location has its own specific challenges - there is not a single catch all solution.
The common view on what Diversity, Equity and Inclusion (DEI) actually are is challenged by excellent research from Edmans, Flammer and Glossner. That's a good thing. It means we can focus on the right actions.
Embracing diversity with an equitable mindset aimed at creating an inclusive workplace has been held up as a way of improving performance. But is that right?
What if financial markets were not focused on short term gain? What if markets are actually long term focused, but that they believe that the pace of the sustainability transitions will be so slow that the business as usual scenario is still financially optimal.