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 \u00a0FIND THE CONVICTION, COURAGE AND STAYING POWER TO CRAFT A STRATEGY TO TAKE THEIR ORGANISATIONS THROUGH THESE STORMY WATERS.<\/p>\n
Signals: As signals roll in that being environmental is leading to healthy profits, the downsides of the\u00a0industrial\u00a0growth legacy( including climate change, inequalities and food provision shortfalls) are catching us up. Whilst countries are crafting fossil fuel descent\u00a0trajectories, 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\u00a0supply\u00a0and demand.<\/strong><\/p>\n Comment.<\/strong>\u00a0 Our collection of links this month offers good news for all who want the environment prioritized.\u00a0At 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.<\/p>\n Supporting links.<\/strong><\/p>\n Sustainable approach lowers capital cost<\/strong><\/p>\n 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<\/p>\n And some media comments<\/p>\n http:\/\/www.environmentalleader.com\/2012\/06\/15\/company-performance-linked-to-csr-deutsche-bank-finds\/<\/p>\n Investment funds now see ESG –\u00a0environmental, social and governance – as key to investment decisions. <\/strong>This is according to the recent survey by CDC group.<\/p>\n http:\/\/www.cdcgroup.com\/Media\/News\/ESG-integral-to-investment-approach-of-emerging-market-fund-managers\/<\/p>\n \u00a0Is business being undermined by energy prices? Some analysts think so, including actuary Gail Tverberg.<\/strong> 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.<\/p>\n