Commitments to neutralize greenhouse gas emissions are proliferating in the corporate world. This can be interpreted as a more structured response to the “ESG Wave” (environmental, social, and governance) that crested over the market in 2020. The key terms for those who announced their goals, or want to do so in the future, are transparency and consistency.
A commitment to carbon neutrality is just the beginning. Keep in mind that a sustainability strategy needs to extend beyond emerging societal trends. A fundamental condition for stakeholder capitalism involves including these groups’ concerns in strategic decisions through structured processes and constructive, long-term relationships. Good communication campaigns can help, but true engagement requires more.
Brands and Causes
Our vision: Before committing to a cause, diligent companies often evaluate how their operations already affect the core issue. It is equally important to consider the realities of external actors. On the topic of D&I (diversity and inclusion), the socioeconomic inequalities at the root of the issue should be considered before attempting to address it. Stakeholder engagement is one way to do this efficiently and definitively.
Our reading list: In response to demands for transparency regarding its commitments, Salesforce launched a tool to monitor greenhouse gas emissions (GHG) in its supply chain. In Brazil, several companies publicly announced they were in favor of greater sustainability in the food sector.
Our vision: Because of its impact on the economy, the financial sector plays a strategic role in sustainable development. An accelerating movement in favor of instituting engagement and transparency processes enables positive changes without negative consequences.
Our reading list: In Europe, sustainable funds raised more capital than other exchange traded funds (ETFs) for the first time. On the other hand, criteria quality used by green funds and their impacts are facing increased scrutiny, as are mechanisms for monitoring ESG performance. Meanwhile, investor pressure is growing for more diversity in companies.
Our vision: We are highlighting the role of stakeholder engagement processes in this issue. Each organization has its own strategic considerations that impact its business, but all companies have one audience in common: employees. A sustainability journey only ends when the people who compose the organization are committed to and properly rewarded for it.
Our reading list: Personnel management is important to all businesses, which is why Plural included turnover as a criterion in its ESG fund. While on the subject of people, the economic crisis triggered by the pandemic calls into question pay disparities at companies. Finally, there seems to bea link between gender diversity and fraud control.
Under a White Sky: Nature in theFuture, by Elizabeth Kolbert, presents scientific solutions that seek to address the great challenges posed by human-caused climate change.