All about the wider issues that come out of the sustainability transitions including human rights
Yes, demand for some 'dirty' products might collapse in the future. But, to make a compelling case to investors, we also need to understand if this negative outcome is already reflected in the current share price.
Diversity matters, but not the diversity you might think. It has become an accepted fact that there is a strong link between demographic diversity and financial returns. But it's not actually supported by rigorous analysis.
Audits matter. Much of the time investors don't get the data that underpins a company strategy. It's confidential. And so we rely on the auditor to check it. And this should include sustainability strategy. But, often it doesn't. That needs to change.
Companies make strategies, investors just critique them. And to do this well, we need companies to have a clearly set out vision for how their industry will look in the future, and how they will fit in it.
Business 101 - first understand how the people you want to influence actually think. This also applies to those who want to influence companies and asset managers. Start with how they think and tailor your message to focus on what they see as important.
Yes, we need to prepare for the future, but in a resilient way. One that doesn't lock us into 'the future will look like the past'. And that includes mining for critical minerals.
Doing nothing in the face of upcoming risks can be massively value destroying for companies, leading to both shareholders and lenders losing out.
Rising sea levels are not just a threat to people. They also could create material financial risks, from what we call asset impairment. And given the long asset lives of most infrastructure, the risk is getting closer than you might think.
We know that 'solving' the artisanal mining challenges is something we need to do. We also know that it's complicated. But people have done it, or at least started it - a Mozambique case study
We all know that stock markets (in fact all financial markets) are partly driven by sentiment. But this only tells part of the story. Accounting fundamentals also matter.
If we want companies to change, then we should start with simple 'yes' questions and work up to the 'Big Yes', our end objective. Don't start by demanding changes they will find it easy to say no to.
Change is about people, and humans are not rational beings. If we want our sustainability investments to happen, and to deliver a fair financial return, we need to understand why they face opposition.