BUSS1000 Lecture Notes - Lecture 7: United Nations Environment Programme, Slacktivism, Cherry Picking
5 Jun 2018
School
Department
Course
Professor
Understand the elements of ethical decision making
•
The role that sustainability and climate change in contemporary business
•
LO:
Demand in modern context = stakeholders are concerned over sustainability and ideas for
sustainable development
•
Background (purpose of integrating sustainability and climate change
in BUSS1000):
WEF identifies water crisis as #1 risk
•
Energy consumption to increase by 35% by 2035
•
Clean energy materials at critical levels (e.g. materials for solar panels are running out)
•
Life critical phosphorous will peak by 2050
•
50% increase required in global food production by 2050
•
Megatrends: Resource Security
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)
•
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)
○
To put this into context, relative to GDP
•
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.
•
Sustainable investing:
systematic and explicit inclusion of ESG factors in investment decision making (drivers of
risk and return)
○
Integrated
•
exclusionary/negative - avoiding sectors e.g. gambling, tobacco, alcohol, fossil fuels
○
positive/best-in-class - positive ESG, sustainability performance
○
norms-based - minimum standards
○
Screening
•
clean energy, green tech, sustainability agriculture, green property etc.
○
Sustainability themed
•
targeted investments aimed at solving social and environmental problems
○
Impact/community investing
•
shareholder power to directly influence corporate behaviour (corporate engagement,
proposals, proxy voting)
○
Use shareholder power to drive sustainability in the business you invested
○
Corporate advocacy and shareholder action
•
Types of sustainable investing:
Sustainable investing represents a significant amount of global economy
•
Stakeholders are demanding that organizations consider and implement sustainable-
mindsets.
•
If we go back to what this means for all of you, working in organisations
•
Sustainability and climate change:
Lecture 7 - Climate Change and Sustainability
Thursday, 19 April 2018
12:17 PM
Lecture Page 1
Document Summary
The role that sustainability and climate change in contemporary business. Background (purpose of integrating sustainability and climate change in buss1000): Demand in modern context = stakeholders are concerned over sustainability and ideas for sustainable development. Energy consumption to increase by 35% by 2035. Clean energy materials at critical levels (e. g. materials for solar panels are running out) 50% increase required in global food production by 2050. In 2012 there was . 3 trillion usd in sustainable investing. (gsir, 2012) In 2016, there was . 89 trillion usd in sustainable investing. (gsir, 2016) To put this into context, relative to gdp. I(cid:374) (cid:1006)(cid:1004)(cid:1005)(cid:1009) the usa"s gdp (cid:449)as (cid:1012). (cid:1004)(cid:1007) trillio(cid:374) usd (cid:894)world(cid:271)a(cid:374)k, (cid:1006)(cid:1004)(cid:1005)(cid:1011)(cid:895) I(cid:374) (cid:1006)(cid:1004)(cid:1005)(cid:1009), chi(cid:374)a"s gdp (cid:449)as (cid:1005). (cid:1004)(cid:1010) trillio(cid:374) usd (cid:894)world(cid:271)a(cid:374)k, (cid:1006)(cid:1004)(cid:1005)(cid:1011)(cid:895) The global gdp in 2015 was 74. 29 trillion usd (gsir, 2016) Integrated systematic and explicit inclusion of esg factors in investment decision making (drivers of risk and return)
