Watershed’s Post

Does finance move away from ESG? Goldman Sachs left the Net Zero Banking Alliance, Coca-Cola lowers ESG commitments.

According to Merrill Lynch, Evidence shows that, from 2005 to 2015, companies with poor ESG scores accounted for 90% of bankruptcies in the S&P 500® — indicating the role ESG & Sustainability plays in potentially mitigating risk and improving returns. Connect & know more about robust ESG Platform of RGBSI !! #RGBSI #ESG #Sustainability

News of corporate retreat from #Sustainability / #ESG commitments continues apace. In the last week alone, Goldman Sachs left the Net Zero Banking Alliance, Franklin Templeton dropped out of Climate Action 100+, and The Coca-Cola Company lowered its commitments for its packaging, recycling and collection goals. The reasons for this are manifold.  However, it is worth noting that a new survey from The Conference Board found that 41% of corporate executives believe that the return on investment from their sustainability initiatives are either underperforming or uncertain, while only 17% felt that way about their “traditional investments.” What does that indicate (to me): ➡️ Intangible benefits are hard to quantify and often ignored ➡️ Win-win sustainability investments are far less prevalent than advertised ➡️ It is unlikely that many companies are excited about sustainability investments that seek to address market failures In addition... ➡️ It is next to impossible to get support for sustainability investments that assure that risks do not manifest in the future I welcome feedback. Adam Rome Maxine Bédat Tariq Fancy Lisa Sachs Alison TaylorJudy Samuelson Joel Makower Gillian Marcelle, PhD Gil Friend Brendan May Andrew Winston Aneel Karnani Andy Hoffman Andy Ruben Laura Segafredo Bill Weihl Tim Mohin Grant Harrison Lawrence Heim Mark Trexler Mads Oscar Haumann Auden Schendler Leslie Johnston, M.Sc. Felix Keser Lucas Joppa John Sterman Neeraj Narayan https://lnkd.in/eNTukPFh

From the post "Win-win sustainability investments are far less prevalent than advertised" This is very true. The advertising industry have helped hype the Sustainability Game: https://lnkd.in/gd-imxUC But not only the advertising industry, NGOs who lend their brands to corporations. NGOs enjoy higher levels of public trust than most other institutions, much higher than governments and businesses. Perceptions of NGOs’ independence and commitment to principle place a large responsibility on them to maintain their autonomy. Their high public credibility explains why business and governments push for their endorsement on environmental/sustainably projects: https://lnkd.in/gvAMZ4B3 Ecologically sustainable development promises a win-win-win scenario between economic growth, ecological sustainability and social justice outcomes, yet it is mathematically impossible to maximise a function for all three variables at once. In practice, there are only two possible options: 1. Maximise for one outcome at the expense of the other two (win-lose-lose), or 2. Optimise the overall outcomes by making tradeoffs between the three. There is no evidence that businesses will make a trade off that reduces economic growth. The real reason to pretend that the impossible is in fact possible and desirable is to disguise reality by sticking to a powerful, convenient story that does not withstand scrutiny – hence scrutiny is discouraged and suppressed. We have been conditioned over the last 200 years that economic development equals ‘progress’ and that economic growth can be limitless. Of course, the reality is that we cannot have unlimited growth on a limited planet. Since the first acknowledgement of those limits, in the early 1970s, capitalism has been looking for a way to justify its continued existence – which requires unlimited growth. The ‘solution’ is as elegant in language (a continually repeated vocabulary and story) as it is ineffective in preventing disaster – exploit the human mind’s fondness for wishful thinking over having to make hard choices. ‘Ecologically sustainable development’ was designed to obscure the fact that the reality is either win-lose-lose or requires hard trade-offs between all three. There is a reason transparency is avoided. Because transparency will provide the proof that sustainability is just an ideology based on magical thinking: https://lnkd.in/gCpUr6uH

What is ESG, and why does it matter for investors? ESG factors can directly impact company financials and, consequently, investment performance. Companies that effectively manage material ESG issues are often less prone to severe incidents such as fraud, litigation, or reputational issues. Therefore, companies with strong ESG credentials may benefit from a stronger reputation and/or lower cost of capital, ultimately protecting or even increasing shareholder value. How can ESG factors affect a company’s financials? Read on for more: https://bit.ly/3z4Vb2J #ESG #Investing #Sustainability #FinanceAwareness #PrivateWealth #PrivateBanking #WealthManagement

#Greenwashing. Truth or myth? The Forum member of UBS #Sustainability and Impact Institute, Fiona Reynolds shares her view on greenwashing, and why it's essential to balance people, profit and planet to combat such concerns. Watch the full video here: https://lnkd.in/evnMp--d #ESG #shareUBS #TheInstitute https://lnkd.in/eXRBrq4M

#Greenwashing. Truth or myth? The Forum member of UBS #Sustainability and Impact Institute, Fiona Reynolds shares her view on greenwashing, and why it’s essential to balance people, profit and planet to combat such concerns. Watch the full video here: http://from.ubs/6041YRBGt #shareUBS #ESG #TheInstitute

A couple of years ago, it seemed certain that ESG investments would significantly impact corporate bonds and traditional finance. Fast-forward to today, and while there is still investor demand, #ESG factors are not an integral part of the corporate bond research industry. Here at Gimme Credit, we do take these factors into consideration, aware that #investors still have a strong appetite. However, these are just two of many issues we consider when calculating our internal #creditscores. For investors and corporate bond research houses, the lack of transparency, together with so-called #greenwashing, is weakening the influence of ESG. Will it take a formal intervention by the regulators to bring sustainability and ESG to the forefront?

🌱 HSBC has announced that companies will need a robust sustainability strategy to secure financing. Jonathan Drew, HSBC's Head of Global Banking Sustainability, emphasized that businesses must communicate their sustainability efforts clearly to access capital. As global pressure mounts to achieve net-zero emissions by 2050, aligning with sustainable practices is crucial for long-term financial support. This move underscores the increasing importance of sustainability in business operations. Read more here: https://lnkd.in/d8B6tivq At Sustainability Lens, our consultants can provide you with more information about developing and communicating your sustainability strategies. Contact us to learn how we can help your company thrive in this evolving landscape. www.sustainabilitylens.com #Climatechangemitigation #CSRD #ESRS #Sustainability #partnerforsustainability