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But carbon is also moving constantly through the globaleconomy, which historically has been powered by burning fossil fuels for energy. That means a lot of companies — and, indeed, entire industries — need to identify levers of influence that align with their operations, business models and valuecreation strategies.
In fact, aligning the core business and valuecreation to ESG performance is how a number of tech firms are seeking to stand out from the crowd. Among them is global tech leader HP, for which ESG has long been a defining aspect of doing business.
A 2019 Environmental Defense Fund assessment indicated that across all surveyed sectors, over 80% of stakeholders are seeking additional actions related to climate impacts. Governments representing about half of the collective globaleconomy have implemented policies that price carbon, which aim to reduce GHG emissions.
During lockdown, the globaleconomy was disrupted so severely that it triggered a shift in mindset among business leaders to recognise the importance of ESG issues in creating a more resilient future. “ When I attended COP25 (Madrid) in 2019, there was talk of the climate crisis, but there was not a lot of urgency,” she says.
The work of the Value Balancing Alliance and Harvard’s newly formed International Foundation for Valuing Impacts (IFVI) aim at measuring companies’ valuecreation. Valuecreation is measured by translating environment and social externalities into monetary values. Source VBA.
The top 25% of companies in terms of gender diversity at executive level outperformed their peers by 21% on profitability and 27% on longer-term valuecreation. According to ING, in 2021, corporate sustainable issuance represented 24% of total corporate bond issuance, a 13% increase from 2019.
In this context, several countries and companies have taken up the challenge, and currently, 90% of the globaleconomy and a third of the 2,000 largest companies have net-zero pledges. As part of CORSIA, air carriers must purchase offsets to cap their annual carbon emissions vs a 2019 baseline. People respond to incentives.”
She makes an important contribution to that through her persuasive arguments and case studies, encouraging business leaders to move beyond a prioritization of short-term shareholder interest to shared purpose-driven, multi-stakeholder, long-term valuecreation.
In 2019 Doctor Christakis wrote “Blueprint: The Evolutionary Origins of a Good Society” which offers an excellent survey of relevant experimental and theoretical science supporting the revaluation of human nature that has found humans to be definingly “pro-social.” .
since its launch in 2019. Second, a new report this week by Bain & Company determined that over a 10-year period, companies in the S&P 500 that created the most value for customers, employees, suppliers and communities also had the highest shareholder returns. year-to-date and by 13.8% since its inception almost 8 years ago.
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