Of current generations without compromising the

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of current generations without compromising the ability of future generations to meet their needs” (United Nations World Commission on Environment, 1987, p. 8). Sustainable Investing In 2012, there was $13.3 trillion USD in sustainable investing. In 2016, there was $22.89 trillion USD in sustainable investing. To put this into context, relative to GDP. o In 2015, USA’s GDP was 18.03 trillion and China’s GDP was 11.06 trillion. Sustainable investing represents 26-30% the world’s GDP. Biennial growth of approximately 26%. Types of Sustainable Investing Integrated: Systematic and explicit inclusion of ESG factors in investment decision making (drivers of risk and return) Screening:
o Exclusionary/negative – avoiding sectors e.g. gambling, tobacco, alcohol, fossil fuels o Positive/Best-in-class – positive ESG< sustainability performance o Norms-Based – minimum standards Sustainability themed – clean energy, green tech, sustainability, agriculture, green property Impact/Community Investing – targeted investments aimed at solving social and environmental problems Corporate advocacy and shareholder action – shareholder power to directly influence corporate behaviour (corporate engagement, proposals, proxy voting) Sustainability and Climate Change Sustainable investing represents a significant amount of global economy. Stakeholders are demanding tat organizations consider and implement sustainable- mindset. If we go back to what this means for all of you, working in organisations o In 2014, around 80% of global fuel demands met by fossil fuel o In 2014, around 1.3billion people were without electricity o Its 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. Sustainability Reporting Several bodies that attempt to bring together, standardize and evaluating reporting measures. Global Reporting Initiative The GRI – economic, environmental and social sustainability Comprehensive sustainability reporting framework that is widely used around the world. Sets global standards Considers economic, environmental and social. Critiques and Problems with Reporting Milne and Gray (2013) 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.” (p. 13) Reporting is something that happens ‘at the end’ – so what can organizations do now? How should they act? Triple Bottom Line The single bottom line: Profit/Loss The triple bottom line: o People o Planet o Profit Part of this broader societal shift and demand towards organisations acting sustainability. TBL has become synonymous with corporate sustainability
Underlying principles remain despite change in terms, titles, labels. It’s used because sustainability simplified to three-part notion Offers little challenge to business as usual Support from: o multi-agency initiatives (GRI) o consultancies and benchmarking (KPMG, UNEP) o accounting profession through awards o business association (WBCSD and DJSI)

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