Ener.co’s Post

Who killed the ESG party? Great mini-doc from FT on the state of the state of ESG. Possible subtitle (?) - “A cautionary tale of throwing out the baby with the bathwater.” I’m reminded of the quote from Bill Gates,  “Most people overestimate what they can do in one year and underestimate what they can do in ten years.” Where do we go from here? #cleanenergy #cleantech #esg #sustainability #energyefficiency Ener.co

For anyone with an interest in ESG, here's a very interesting short documentary.

It stings a little to hear this narrative laid out ... and to have lived it the past few years. But it's a very good articulation of the shift away from some of the elements of ESG, with the potentially positive outcome of more integration of sustainability principles without the artificial hype. #esg #sustainability

Last week, the Financial Times released a film called "Who Killed the ESG Party?", which is making its rounds on the internet amongst ESG's vocal critics. The film should be called who killed the “E” party, since it’s focus is narrowly on climate and fossil fuels. It doesn’t address that many managers believe the G is the most critical piece through which E and S factors are financially considered, and the importance of employees in driving financial success. ESG is all about tying sustainable business practices to profit. Pieces like this overgeneralize the practice and we're here to set the record straight. What do you think of their portrayal of #ESG and #sustainability in 2024? https://hubs.li/Q02HThqf0

Interesting 30min from UK Financial Times on 'Who Killed the ESG Party'. https://lnkd.in/eH7tSxkQ   Interesting because it may well confirm your beliefs irrespective of which side of the argument you are on.   Sustainability (and not ESG) continues to remain for me about 'ensuring indefinite continuity'. It is about us taking steps to ensure world continues to prosper with a capacity to support more and not less people.   To ensure this, we need to set ourselves up for the world we will operate in and not the world we hope we will operate in. This is a world of 9-10bn people who will live longer and have greater resource demands. This increased resource demand will be in a world that has reduced capacity to meet these demands because of climate change, biodiversity loss, water restrictions and growing pollution.   The corporate sustainability challenge is to review how fit for purpose our business models are. If we believe change is required, we need to make those changes in way that doesn't disadvantage our companies in the short to medium-term while we set ourselves up for long-term success. And this will require brilliance by everyone!! The challenge is only growing, but given it is not going away and the importance winning, we must continue to advocate and act.

Massive thanks for Jonathan Huw Howells for sending me this video from the FT. Personal opinion: I've long felt we need to move past the ESG term - its too overloaded, confusing and politicized. As the video points out a company that was claiming to be governed well (but actually wasn't - as how was the definition agreed or verified) was able to claim to be an ESG fund. Companies that do all kinds of environmental harms might be well governed and therefore could claim to be an ESG investment. On the flip side companies like Tesla have a product that helps with a transition to a low carbon future but might not be well governed or score well on other ESG aspects. It's all too subjective and has been politicized. As a result I think we need to measure companies on their environmental performance separately (and drive for audited transparency on key metrics) from how we measure their governance and societal impacts. Having it all bundled was well intentioned but a recipe for confusion. As per my recent talks on sustainable and regenerative architecture - and the closing point in this video - this is a huge opportunity to reimagine our business and we need to drive organisations towards sustainable, circular and regenerative approaches. We also need to hold companies to account on how they are governed and their wider impacts on society but these should be separate metrics. In reality we have some of this already with carbon reporting (although there is a danger of carbon tunnel vision there - we need to look at natural ecosystem and water impacts for example). Probably also worth taking another look at the Economy for Common good with its separate criteria for key concerns?

Nice perspectives shared in the film on #ESG...must watch !! A few learnings all #sustainability enthusiasts can take: 1. ESG is not a marketing tool...#greenwashing will only have a reverse impact, 2. ESG is not for the short term gains...one should step into this direction with a sustainable long term perspective, both #companies and #investors. 3. ESG is not about looking good...it is about doing the right thing which makes you sustainable. 4. ESG is here to stay...the jargons may dissolve, but #lifestyle for #environment is the new mindset, which #consumers will establish. 5. ESG is not a party to say the least...it is a cumbersome #transformation which the world is moving towards. #integrity is doing the right thing, even if no one is watching (C.S.Lewis)...a mindset that prioritizes sustainability from the outset. https://lnkd.in/g2ybhN7M

A few days ago, the FT published a short film, "Who Killed the ESG Party?". A great watch and some notable suspects were mentioned. Main take? The ESG party is far from over; in fact, it is just getting started - properly this time. ESG is undergoing a significant transformation. Financial institutions are becoming more cautious with their sustainability commitments due to underwhelming performance and accusations of greenwashing. The film concludes by emphasizing that ESG is not a label or a political stance; it is here to stay. ESG is a framework that drives long-term thinking and can deliver sustainable returns. And, is much needed considering the science that continually highlights how behind we are in achieving targets, including net-zero emissions and nature-positive outcomes. Addressing these challenges requires effort, systems thinking, and innovation. Those who integrate and master ESG will surf the green wave of the greatest economic transformation and opportunity in human history - as Simon Mundy put it wisely. https://lnkd.in/gmtGBd3d #ESG #sustainablefinance #responsibleinvestment #sustainability #ft

New documentary by FT - 'Who killed the ESG Party?' available on YT: https://lnkd.in/eWJRQvmq Strongly recommended for watching (30 min with key problems, arguments and reflections)! It is what happens when the focus is too much on the marketing buzz and the buzzword, and not on the substance itself. With 2024 being the hottest word on record, the ESG party might be ower (and that is some good news!), but sustainable investing is still very much still en vogue.

If you have a spare 30 mins, i would strongly urge you to see this Financial Times documentary. Is ESG still at the front and center of leading financial intuitions' investment philosophies? If not, why? What changed? This is captivating viewing.