SEEING MOST BOARDS AND MANAGEMENT TEAMS ARE CONVINCED THAT COUNTER -SUSTAINABILITY AS A STRATEGY IS NOT AN OPTION, SIGNALS IS OBSERVING THAT THE NEXT CHALLENGE, DOING THE RIGHT THING AT THE RIGHT TIME TO THRIVE IN A DOWNWARD ENERGY TRAJECTORY, IS DEMANDING LEADERS FIND THE CONVICTION, COURAGE AND STAYING POWER TO CRAFT A STRATEGY TO TAKE THEIR ORGANISATIONS THROUGH THESE STORMY WATERS.
Signals: As signals roll in that being environmental is leading to healthy profits, the downsides of the industrial growth legacy( including climate change, inequalities and food provision shortfalls) are catching us up. Whilst countries are crafting fossil fuel descent trajectories, the special role that energy plays in the economy means that you cannot just unplug the economy from its fossil fuel life support, and hope. Energy might not even comply with the laws of supply and demand.
Comment. Our collection of links this month offers good news for all who want the environment prioritized. At the same time, there are genuine concerns that business as usual cannot feed the planet. Next month’s Water and Food Award in London will highlight what can be done, but none of the solutions that are working fall under business as usual. Making sweeping changes to transition to business as unusual demands true leadership.
Sustainable approach lowers capital cost
Survey by Deutsche Bank of more than 100 academic studies showed that globally, firms with high ratings for corporate social responsibility and ESG factors had a lower cost of capital.http://www.dbcca.com/dbcca/EN/_media/Sustainable_Investing_2012-Exec_Summ.pdf
And some media comments
Investment funds now see ESG – environmental, social and governance – as key to investment decisions. This is according to the recent survey by CDC group.
Is business being undermined by energy prices? Some analysts think so, including actuary Gail Tverberg. The challenge is that energy is getting harder to extract and requires higher prices. If companies cannot pay the higher prices, then exports fall and this in turn reduces revenue that pays for public services. The business as usual that US, EU and Japan have enjoyed is dependent on hight energy intensity and the basic paradigm is being challenged by the fact that oil is expensive to extract.
A slight change in climate could make our food “hollow of nutrients”
A world with everyone fed turning CSR strategy to food security: The Humanitarian Water and Food Award is challenging corporations to put food security at the heart of their CSR strategy. They will present five finalists and choose a winner at their prestigious Event in central London on the 18th June. http://www.wafaward.org/#!london-2014/ct1m
Going from business as usual to business as putting food on the table is the strategy for the future, argues the Water and Food Award.
This recording of a recent short webinar explains the main outlines. http://csrwebinars.avbp.net/?p=204
About this newsletter:
We monitor the news flow from a wide variety of sources from the last 30 – 60 days for developments that could inform your organization’s social and environmental strategy which in turn could affect your overall business strategy.
The idea of this newsletter is to alert you to trends that, in your leadership role, you may need to be aware off. Once alerted, if relevant to you, you will start to pick up on them in other channels and can start to apply your understanding. Together with our partners we offer dialogues, training, webinars and consulting to help organizations rise to the social challenges of our times.
JOINING THE DIALOGUE: Stephen Hinton Consulting, together with the Swedish risk management organization, ISSS and the Water and Food Award offers strategists and business leaders support in framing strategies for the new, resource constrained but connected world. Building awareness is one of the first steps. Contact us through our websites for more information on how we can support you.
NOT SIGNED UP? Click on the link to sign up to make sure you get your next newsletter straight to your in-box. SIGN UP HERE