Thematic Thoughts
Real world sustainability linked changes and what they might mean for companies and investors
When optimisation can be sub-optimal
"It's a system optimized to work fantastically, when everything's working fantastically." Coco Krumme, "Optimal Illusions: The false promise of optimization" Technology consultant Dr Jeffrey Funk highlighted a really interesting book by the applied mathematician Coco Krumme. An argument that Dr Funk often
Staying above water: a systemic response to rising flood risk
This is the title of a recently published report from Marsh McLennan. It highlights the alarming rate at which flood risk is growing globally, estimating that currently 18% of the global population is exposed. Even limiting post-industrial average global temperature rises to 2oC could double that percentage. The key message
Reputation and recruitment
The reputation of your business is almost certainly having an impact on your most important long term asset, the ability to recruit the best people. Not just entry level graduates, but all through the organisation. This might not generate the same headlines as the short term share price impact, but
Climate change spreading the impact of infectious diseases.
Tropical diseases are coming to a community near you, even if you live in the temperate 'north'. A recent FT article highlighted this topic, which we wrote about last year (perhaps they read our blogs? ). Some health issues that will arise from climate changes and environmental degradation don&
How much are green buildings worth?
Green buildings are cheaper to operate, more attractive to tenants, and they are future proofed, protecting the landlord against additional refurbishment spending as building standards get tougher. And, they are only slightly more expensive to build. So, if the financial markets are efficient, green commercial buildings should be worth more.
ESG funds are ubiquitous in Europe - job done?
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
Encouraging green steel developments
Some supply side and demand side developments in green steel: * H2 Green Steel has raised close to €1.5 billion through a private placement from existing investors (Altor, GIC and Just Climate) as well as new investors including Hy24, AP2 and Temasek. The proceeds will be used to finance the
Building regs backlash in Germany; all swans are black in the dark; 20s plenty?
Building regs backlash in Germany; all swans are black in the dark; 20s plenty?
Some renewables getting cheaper, storage needs for a 100% renewable grid & finance and ethics in food
Renewables continue to get cheaper, but not everywhere. According to recently published IRENA research renewables are continuing to get cheaper. That is good news yes? But, before you celebrate, it's worth digging some more into the data. China is doing well, but Europe clearly has some issues to
State of the global workplace, extra fossil fuel costs & safe at home
Here are three stories that we found particularly interesting this week and why. We also give our lateral thought on each one. * State of the global workforce. * Extra fossil fuel costs = 2/3 x transition costs?! * Safe at home: Passive House. State of the global workforce. What can leaders do
Do investors use the wrong models, indices and decarbonisation, and chicken and egg of green steel
Are investors using the wrong models? What mid term scenario about our environment do you use in thinking about your investments? If you are like most investors, you use one of the available economic models. Are they really consistent with the science? What if they are massively under estimating the
Better flood risk management; Reputation and recruitment; Climate change spreading disease.
We need better flood risk management; Reputation and recruitment; Climate change spreading disease.