When we talk about sustainability in the context of

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When we talk about sustainability in the context of business, we are not specifically talking about climate change, environmental impact etc. – we are talking about whether this practice is sustainable Sustainable development which is “…development that meets the needs of current generations without compromising the ability of future generations to meet their needs” Sustainable investing In 2012 there was $13.3 trillion USD in sustainable investing. (GSIR, 2012) In 2016, there was $22.89 trillion USD in sustainable investing. (GSIR, 2016) To put this into context, relative to GDP In 2015 the USA’s GDP was $18.03 trillion USD (Worldbank, 2017) In 2015, China’s GDP was $11.06 trillion USD (Worldbank, 2017) The global GDP in 2015 was 74.29 trillion USD (GSIR, 2016) Sustainable investing represents 26-30% the world’s GDP Biennial growth of approximately 26% Not all sustainable investing looks the same Types of sustainable investing Integrated – systematic and explicit inclusion of ESG factors in investment decision making (drivers of risk and return) Screening: - Exclusionary/ negative – avoiding sectors e.g. gambling, tobacco, alcohol, fossil fuels - Positive/ best-in-class – positive ESG, sustainability performance - Norms-based – minimum standards Sustainability themed – clean energy, green tech, sustainability agriculture etc. Impact/ community investing – targeted investments aimed at solving social and environmental problems Corporate advocacy and shareholder action – shareholder power to directly influence corporate behaviour Growth in sustainable investing Global sustainable investments by strategy and region in 2012 Global sustainable investments by strategy and region in 2016
BUSS1000 | Future of Business Sustainability and climate change Sustainable investing represents a significant amount of global economy Stakeholders demanding organisations consider/implement sustainable-mindsets In 2014, around 80% of global fuel demands met by fossil fuel In 2014, around 1.3 billion people were without electricity Estimated that emissions need to be lowered by 35% - 70% by 2050 These shifts will in turn, demand substantial societal (and in turn infrastructure) shifts Efforts and measures around sustainability reporting Several bodies that attempt to bring together, standardise and evaluating reporting measures as ultimately – this is how we know One such example is the Global Reporting Initiative Global Reporting Initiative Comprehensive sustainability reporting framework that is widely used around the world Sets global standards Considers economic, environmental and social Critiques and the problems with reporting Milne and Gray discuss “the modern disconnect between the practice of sustainability reporting and what we consider to be the urgent issue of our era: sustaining the life- supporting ecological systems on which humanity and other species depend Reporting is something that happens ‘at the end’ – so what can organisations do now? Triple bottom line Single bottom line: profit/ loss Triple bottom line: people, planet, profit

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