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The war in Ukraine has brought new uncertainties to the actions around climate emergencies. Besides the severity of social issues, there are concerns about how the European energy transition will evolve, which may regress in the short term with the eventual use of coal-fired power plants or accelerate in the long term with more competitive clean energy costs. The geopolitical and economic changes make it difficult for countries to come together to face the worrying scenario revealed in the new report of the Intergovernmental Panel on Climate Change (IPCC). The climate impacts are more severe, more frequent, and occurring sooner than expected with the aggravating factor that many impacts are irreversible. 

Brands and Causes

Our Vision: It will be inevitable for companies using plastic in their supply chains to revisit the entire life cycle of their products and identify opportunities for innovation. New technologies are key to avoiding costs being passed on to consumers. 

Our Reading List: The United Nations has announced a landmark treaty to eliminate plastic pollution. Joined by 175 nations, the agreement includes establishing legal barriers to the production and marketing of plastic, especially disposable plastic. For companies, this means stepping up the circular economy and innovating. Two Brazilian giants, O Boticário, a cosmetics company, and Suzano, a paper and cellulose company, have developed plastic-free packaging. TetraPak invests in the creation of packaging from recyclable materials or renewable sources, and PepsiCo innovates with the adoption of bioplastic pallets. 

Sustainable Finance

Our Vision: Having consistent ESG practices broadens the possibility of access to loans, provided that organizations ensure the traceability of information and the verification of processes.  

Our Reading List: On one hand, banks like Credit Suisse and the Inter-American Development Bank (IDB) are restricting loans to sectors usually generating negative impacts on the environment. On the other hand, we see a possible flexibility in non-investment policies in some sectors such as the weapons industry, which is traditionally prevented from integrating portfolios linked to sustainable practices. Despite the dichotomy, the securities linked to ESG practices (green bonds and social bonds) are promising and should reach $4.5 trillion by 2025.   

Corporate Sustainability

Our Vision: A diverse board of directors supports diversity of knowledge and viewpoints and encourages a more inclusive corporate culture, providing a broader view of risk management.  

Our Reading List: global survey reveals that women hold only 19.7% of seats on Boards of Directors and only 6.7% account for the presidency. In Brazil, the participation is even lower, with 14.4% in the seats and only 4.4% in the presidency. As a way to accelerate the gender equity in top management, financial institutions are establishing a minimum number of women on the boards as an investment criterion, as is the case of BNPParibas

Deep Dive

To inspire companies, former Unilever CEO Paul Poulman and sustainable business consultant Andrew Wiston bring key lessons from Unilever and other pioneering companies about how you can profit from solving the world’s problems instead of creating them in the book Net Zero

Let’s talk!
Brian Burlingame, CEO
+1 (305) 860-1000