Thematic Thoughts
Thinking about the big issues around how sustainability links into the world of finance
Sunday Brunch: the binary chasm
Sustainability argument's have become binary. Part of this is due to use being more tribal. But a part is also our desire to over simplify. Sustainability investment is complex, and nuanced. We need to reflect the reality of the world in our 'asks' of companies, or nothing will change.
Sunday Brunch: investing is not just about generating alpha
At it's heart our financial system is really simple. Money flows from savers to spenders. Where this system struggles is when the actions of the spenders impose costs on the wider society that mean that the net return to savers (financial return minus imposed costs) are reduced.
Sunday Brunch: it's a question of character(istics)
The world of investing and sustainability can challenge our traditional ways of looking at the world and characterising and grouping things. We need to change our perspective, especially if we want to persuade companies and investors to act.
Sunday Brunch - who decides the topics for engagement?
Unless you have been living off grid, you will know that one of the defining debates around ESG and Sustainability relates to engagement - by which we mean interacting with companies to get them to change their behaviour.
Sunday Brunch: more on getting financial people to listen
Without action, sustainability reporting regulations and frameworks are just a data collection process. Part of this is motivating investors to put a lot more resource and expertise into informed engagement. But it's also about how companies acting with purpose create financial value.
Sunday Brunch: the values-behaviour gap
Understanding human behaviour is critical to all aspects of sustainable investing. If we don't know why people do things, we cannot get them to change. And if they are not going to change, we will need to rethink how we make company business model's sustainable and financially viable.
Building regs backlash in Germany; all swans are black in the dark; 20s plenty?
Building regs backlash in Germany; all swans are black in the dark; 20s plenty?
Some renewables getting cheaper, storage needs for a 100% renewable grid & finance and ethics in food
Renewables continue to get cheaper, but not everywhere. According to recently published IRENA research renewables are continuing to get cheaper. That is good news yes? But, before you celebrate, it's worth digging some more into the data. China is doing well, but Europe clearly has some issues to
State of the global workplace, extra fossil fuel costs & safe at home
Here are three stories that we found particularly interesting this week and why. We also give our lateral thought on each one. * State of the global workforce. * Extra fossil fuel costs = 2/3 x transition costs?! * Safe at home: Passive House. State of the global workforce. What can leaders do
Do investors use the wrong models, indices and decarbonisation, and chicken and egg of green steel
Are investors using the wrong models? What mid term scenario about our environment do you use in thinking about your investments? If you are like most investors, you use one of the available economic models. Are they really consistent with the science? What if they are massively under estimating the
Better flood risk management; Reputation and recruitment; Climate change spreading disease.
We need better flood risk management; Reputation and recruitment; Climate change spreading disease.
ESG funds abound = job done?; Positive green steel developments; How much are green buildings worth?
ESG funds abound = job done?; Positive green steel developments; How much are green buildings worth?