On March 14, 2024 I was interviewed by Juan Carlos Giraldo for his podcast Perspectives in Business.
Listen on Spotify
Listen on Apple Podcasts
In response to a recent NYT guest editorial, we assert that ESG investment funds are very much not a “sham”.
The recent report from the UN’s Intergovernmental Panel on Climate Change (IPCC) has alarmed many of us and with good reason. The report paints a bleak picture of the future of our planet if we do not take immediate action. Meanwhile, extreme weather events have been getting more frequent while unprecedented wildfires are burning across the Northern Hemisphere. Governments have failed to take the actions necessary to stop climate change, despite the increasing urgency. It is understandable that many people feel scared about the future and helpless to do anything about it.
At a recent high school reunion, I organized a panel discussion on sustainability with several of my classmates. One classmate asked: What can we, as individuals, do about sustainability?
This is a question that many of us wrestle with, but not always systematically. We often end up focusing on what makes us feel better rather than on what is most effective. We can, though, work systematically to reduce not just our own carbon footprints but that of our society. Bear in mind that the carbon reducing strategies that get the most attention aren’t necessarily the most effective ones. It is important to look carefully at all the factors driving our carbon emissions and not just jump at the most obvious solutions. The following is by no means a comprehensive list.
On March 14, 2024 I was interviewed by Juan Carlos Giraldo for his podcast Perspectives in Business.
Listen on Spotify
Listen on Apple Podcasts
The recent report from the UN’s Intergovernmental Panel on Climate Change (IPCC) has alarmed many of us and with good reason. The report paints a bleak picture of the future of our planet if we do not take immediate action. Meanwhile, extreme weather events have been getting more frequent while unprecedented wildfires are burning across the Northern Hemisphere. Governments have failed to take the actions necessary to stop climate change, despite the increasing urgency. It is understandable that many people feel scared about the future and helpless to do anything about it.
At a recent high school reunion, I organized a panel discussion on sustainability with several of my classmates. One classmate asked: What can we, as individuals, do about sustainability?
This is a question that many of us wrestle with, but not always systematically. We often end up focusing on what makes us feel better rather than on what is most effective. We can, though, work systematically to reduce not just our own carbon footprints but that of our society. Bear in mind that the carbon reducing strategies that get the most attention aren’t necessarily the most effective ones. It is important to look carefully at all the factors driving our carbon emissions and not just jump at the most obvious solutions. The following is by no means a comprehensive list.
On August 25th an icon of corporate America lost some of its sheen when Exxon Mobil was removed from the Dow Jones after nine decades, its predecessor company having joined in 1928. A few years ago, it would have been inconceivable for the leading oil company in the US not to be included in this prominent measure of the stock market. The ground has been shifting under one of the country’s biggest industries. The removal of Exxon Mobil from the Dow Jones is not the beginning of a trend. It is the continuation of one. Energy stocks have been among the worst performers in both the dramatic sell-off and the equally dramatic rally this year.
As the climate becomes increasingly volatile, with temperatures rising and unexpectedly severe hurricanes, droughts, floods, forest fires and other natural disasters occurring worldwide, the debate over how to combat and mitigate it has become ever more intense. Policy makers in most countries, business leaders, non-profits, and individuals are all grappling with this question and with how to change regulation, business practices and consumption habits. The debate also encompasses investing and a number of organizations have decided to divest from fossil fuels or have come under pressure to do so, the Harvard and Yale endowments among them (neither has agreed to divest). Individuals have also been trying to decide what they can do, not just as consumers, but also as investors.
When concerns about sustainability in business are being addressed, the banking sector is often far from top of mind. After all, its direct impacts on the environment are limited. Banking is not a carbon intensive industry, in contrast to mining, oil and gas, transportation or manufacturing and banks can only make so much of a difference by cutting back on their use of paper and making their business premises more energy efficient. Yet banks are at the very heart of the economy and are, therefore, positioned to have a bigger impact on sustainability than any other industry, whether they like it or not. In lending, in underwriting and in investing banks have the power to accelerate the integration of sustainable practices throughout the economy.
