What Motivates Companies to Invest in Sustainable Practices?

What Motivates Companies to Invest in Sustainable Practices?
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link: http://www.nanukasset.com/funds/responsible-and-sustainable-investment
author: Nanuk Asset Management

C O N T E N T S:

KEY TOPICS

  • The decision to invest in companies that incorporate ESG criteria into their agenda and have sustainable practices can potentially improve the risk assessment and long-term return profile of an investment portfolio.(More…)
  • Read the tips below from our 2018 WBENC National Conference & Business Fair Sustainability Sponsors, INTREN and Pacific Gas and Electric Company, to successfully integrate sustainable practices into the management of your business as well as ensure you and your company are contributing to a healthier environment.(More…)
  • Therefore, companies that wish to benefit from long-term employment of top talents have a real motivation to support sustainable business practice, in daily practice as well as in their public communications.(More…)
  • Impact investors are less concerned about whether one investment style or another will outperform from one year to the next, but rather whether the companies in which they invest engage in practices that keep them awake at night.(More…)

POSSIBLY USEFUL

  • “Sustainable investing, when incorporated into a well-defined, long-term investment plan, can be a powerful tool to address some of the world’s most pressing challenges, while allowing you to achieve your personal financial goals.”(More…)
  • Owens Corning was recognized as one of the world’s most sustainable companies for the fifth consecutive year by sustainability investment specialist RobecoSAM. This recognition earned the company placement in RobecoSAM’s 2018 Sustainability Yearbook.(More…)

RANKED SELECTED SOURCES

KEY TOPICS

The decision to invest in companies that incorporate ESG criteria into their agenda and have sustainable practices can potentially improve the risk assessment and long-term return profile of an investment portfolio. [1] Allianz Global Investors, BlackRock, Legal & General Investment Management (LGIM), Mercer and Natixis have joined the initiative’s steering committee to contribute best practices on ESG, helping to educate member companies on incorporating sustainable strategies in their retirement plans. [2] In a 2017 Morgan Stanley survey, 75 percent of investors said they are interested in sustainable investing and 71 percent believe companies with leading sustainability practices may be better long-term investments. [3]

Read the tips below from our 2018 WBENC National Conference & Business Fair Sustainability Sponsors, INTREN and Pacific Gas and Electric Company, to successfully integrate sustainable practices into the management of your business as well as ensure you and your company are contributing to a healthier environment. [4] Another example of sustainable practices in poverty alleviation is the use of exported recycled materials from developed to developing countries, such as Bridges to Prosperity’s use of wire rope from shipping container gantry cranes to act as the structural wire rope for footbridges that cross rivers in poor rural areas in Asia and Africa. [5]

Lack of access to key natural resources is one of the classic reasons that companies would choose to shift toward more sustainable practices. [6] We bring the various working groups together to drive and collaborate on sustainability programmes in key markets, as well as sharing best practices across the Singtel Group of companies. [7] “With low interest rates and increased longevity, companies need to motivate more people to participate in pension plans and 401(k)s to keep the system healthy,” says Irshaad Ahmad, head of Institutional Europe at Allianz Global Investors. [2] Galvin said the presence of guarantees “changes the risk profile significantly” and motivates investors sitting on the fence to “pull the trigger.” [8]

Our strategy is underpinned by delivering an unparalleled customer experience while embracing responsible business practices, both across our operations and our supply chain. [7] “If they do go out to the market, invest in a blue bond, and then raise that money and deploy it correctly – the benefits of spending that money on fisheries management in terms of fish, jobs, food security, and climate change – all of these benefits can be measured and more than pay back the cost of the bond.” [8]

Therefore, companies that wish to benefit from long-term employment of top talents have a real motivation to support sustainable business practice, in daily practice as well as in their public communications. [6] Many observers agree that concrete actions are still lacking, and that the pace of change in adopting sustainable practices needs to be accelerated. [6]

Treating the environment as an externality may generate short-term profit at the expense of sustainability. 204 Sustainable business practices, on the other hand, integrate ecological concerns with social and economic ones (i.e., the triple bottom line ). 205 206 Growth that depletes ecosystem services is sometimes termed ” uneconomic growth ” as it leads to a decline in quality of life. 207 208 Minimizing such growth can provide opportunities for local businesses. [5] SB newsletters will help you create and maintain your company’s competitive edge by adopting smarter, more sustainable business strategies and practices. [9] “Anti-consumption as part of living a sustainable lifestyle: Daily practices, contextual motivations and subjective values” (PDF). [5] Sustainable best practices can involve the recycling of materials, such as the use of recycled plastics for lumber where deforestation has devastated a country’s timber base. [5] This site shares news, insights and best practice on trends impacting global sustainable development. [10]

The Investment Policy team of the World Bank Group’s Trade & Competitiveness (T&C) Global Practice has learned that China is about to adopt a new foreign investment law that would bring about several potentially significant improvements to the current investment regime. [11] The international community has identified many industries whose practices have been known to violate social sustainability, and many of these industries have organizations in place that aid in verifying the social sustainability of products and services. 269 The Equator Principles (financial industry), Fair Wear Foundation (garments), and Electronics Industry Citizenship Coalition are examples of such organizations and initiatives. [5]

CDP leverages investor and buyer power to motivate companies to disclose and manage their environmental impacts. [12] The company also stated commitment to building its business in support of the Paris Agreement, and plans to invest over $200 million in Equinor Energy Ventures, one of the world’s largest corporate venture funds dedicated to investing in growth companies in renewable energy. [13]

How can we return value to growers by either streamlining or replacing an existing task, or by delivering new business insight to them? Sustainability leaders are not going to win hearts and minds by using fear or embarrassment to motivate change among growers. [9]

Impact investors are less concerned about whether one investment style or another will outperform from one year to the next, but rather whether the companies in which they invest engage in practices that keep them awake at night. [14] We invest exclusively in companies that use innovative ideas to change the infrastructure and practices in the products & services space within Health tech, Energy Tech, Agri-tech and Ed- tech space. [15]

The practice of sustainability reporting by the super-majority of the 500 companies is holding steady with minor increases year after year. [16] Each year the rankings measure the success of the ” Brands Taking Stands ” movement by celebrating the most successful, most transparent companies that report on their responsible practices. [16]

It will bring together financial institutions, regulators, industry bodies, federal, state and local governments, academia, and civil society organisations to discuss how banking, insurance and investment practice and policy and regulatory frameworks can support the transition to a resilient and sustainable economy. [17] As a reflection of its own commitment to advancing sustainable investment practices, RobecoSAM is a signatory of the PRI and UN Global Compact, a member of Eurosif, Swiss Sustainable Finance, Carbon Disclosure Project (CDP), Ceres and Portfolio Decarbonization Coalition (PDC). [16] The training session – which focused on environmental and social risks in lending and investment and opportunities resulting in adopting green finance practices – was one of a series of trainings on Green Finance held in Ivory Coast from 25 to 27 June 2018. [17] The successful implementation of these actions is key to help Brazil achieve its sustainability goals and increase the awareness of responsible investment practices in the country. [17] They are voluntary and aspirational, offering a menu of possible actions for incorporating ESG issues into investment practices. [17] One of the recommendations of the Fiduciary Duty in the 21 st Century project was that the Brazilian financial market should adopt the AMEC’s stewardship code as a tool to foster the responsible investments practices in the country. [17] These new appointments strengthen the Global Steering Committee, positioning it to provide the leadership needed for UNEP FI and its membership to fully integrate sustainability considerations into financial practice. [17] By joining UNEP FI, AAIB aims to learn more about current global sustainable finance practices, connect with peers and share experiences. [17] Eric Usher, UNEP FI Head, complimented AAIB on the great strides they have made, on their sustainable finance journey and said “Thanks to its size, and sophistication, Egypt has always been considered by UNEP FI as a key market for initiating positive market transformation through sustainable finance practice. [17]

This is a sector (Food & Ag) rich in traditional practices and ripe for positive change as stakeholders and consumers present their expectations for the firms to be more sustainable – and accountable to society. [16] Effectively presenting the most compelling reasons to engage in sustainable business practices is the vital first step in opening new dialogues with industrial decision makers. [6]

For many years, the bank has been active in embedding sustainability practices in their business and in the industry. [17] This increases the urgency for implementing practices that contribute to raising the awareness on the importance of environmental, social, and governance (ESG) issues among investors and regulators. [17] Investor expectations were important considerations for C-suite and board, and there was peer pressure as well within industries and sectors, as the big bold names in Corporate America looked left and right and saw other firms moving ahead with their enhanced disclosure practices. [16] There was pressure from the purchasing side – key customers were asking their corporate supply chain partners for information about their ESG policies and practices, and for reports on same. [16] Guest Writer Emily Folk explains: the coffee industry spans countries and cultures, is centuries old, and from harvesting the beans through roasting to the final retail product, the industry is recognizing public expectations about some practices – and is undergoing changes. [16] Step by step, the commission will identify activities which qualify as “sustainable?, taking into account existing market practices and initiatives and drawing on the advice of a technical expert group that is currently being set up. [17]

Companies that lead in sustainability use the CSA results in their communication with investors and B2B clients and to motivate employees to name just a few examples. [16] The CSA results are often used by companies to refine their sustainability strategy, add credibility to sustainability focused RfPs, attract investors, and to motivate employees and increase engagement. [16]

One of the most powerful driving forces behind the rise in reporting is an increasing demand from all categories of investors for material, relevant, comparable, accurate and actionable ESG disclosure from companies they invest in, or might consider for their portfolio. [16]

According to a Morgan Stanley study, 9 out of 10 millennials want to invest in areas that impact social change, like the SDGs. [18]

POSSIBLY USEFUL

“Sustainable investing, when incorporated into a well-defined, long-term investment plan, can be a powerful tool to address some of the world’s most pressing challenges, while allowing you to achieve your personal financial goals.” [1] Sustainable investments can help you capitalise on opportunities that support long term trends such as ageing, rapidly growing populations and resource scarcity. [1]

Driving performance by incorporating environmental, social and governance (ESG) considerations into investment decisions is the foundation of sustainable investing. [1] The World Business Council for Sustainable Development (WBCSD) has launched “Aligning Retirement Assets” (ARA), an initiative enabling companies to better align retirement assets, including defined benefit (DB) and defined contribution (DC) plans, with their overall sustainability goals by integrating environmental, social and governance (ESG) considerations. [2] The list of “sustainable” companies I?ve invested in aren’t the sustainability leaders I expected. [3] Our belief is that sustainable companies can perform competitively, and that the integration of this analytical framework may identify risks that traditional financial data does not. [19]

Companies are motivated to lead on sustainability for a number of reasons including cost savings, risk management and improved reputation. [3] Companies with strong ESG ratings typically have better risk control and compliance standards. [19] Another study indicated that companies with higher ESG ratings demonstrated lower levels of risk and higher valuations. [19] In our experience, plan sponsors are implementing strategies that allocate based on how well companies do managing environmental, social or governance factors versus their peers, this is commonly referred to as a best in class or ESG integration approach. [19] The construction methodology also screens the stocks of companies that do not meet certain diversity criteria as well as labor, human rights, anti-corruption and environmental standards defined by the U.N. global compact principles. [2] This includes using tools like CDP, a global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts. [3]

A clear majority of all employees who work at Fortune 1000 companies expect their 401(k) plans to offer funds aligned with their own companies? sustainability commitments, with this expectation rising to 66% with Millennials and 67% among women, according to a soon-to-be-released study by Povaddo. [2] By demonstrating a commitment to a healthy world environment, companies such as Bank of America, prove they care about the their employees’ world as well, which is beneficial for employee morale. [20]

Nissan Sustainability 2022 also outlines Nissan’s initiatives toward contributing to the sustainability of society as well as its own sustainable growth as a company. [21] Wachowicz said that while it may be challenging to create a larger scale of public-private partnerships and use creative financial structuring to develop blue bonds, they represent a promising direction for sustainable fisheries financing. [8] One way to enable sustainable fisheries management is to target the activities of small-scale coastal fishing businesses. [8] Our Group Chief Corporate Officer who looks after Group Procurement has responsibility and oversight of the sustainable supply chain management strategy. [7] Supply chain – Nissan will establish a sustainable supply chain with due regard to human rights and the environment. [21]

I?m also encouraged by my colleagues on the EDF+Business Sustainable Finance team who are here to help the financial sector and investors find and scale innovative financing solutions that foster economic and environmental prosperity. [3] Sustainable investing is one of the fastest growing areas in both the finance and the social impact sector today. [1] “The market is expected to continue to grow in the coming years as 86% of Millennials are interested in sustainable investing, and 90% are interested in pursuing sustainable investments if an option in their 401(k) plans.” [2] Investment platforms in sustainable investing can range from funds and bonds to private equity and even direct investments. [1] Our open architecture model offers a range of sustainable investing solutions from leading industry providers to help you achieve your goals and align with your personal values. [1] Through advancements in sustainable investing, initial data indicates it may be possible to create total portfolio solutions that enhance risk-adjusted returns in the long run without compromising short-term return goals. [2]

Owens Corning was recognized as one of the world’s most sustainable companies for the fifth consecutive year by sustainability investment specialist RobecoSAM. This recognition earned the company placement in RobecoSAM’s 2018 Sustainability Yearbook. [12] Every year since 2004, the Sustainability Yearbook has listed the world’s most sustainable companies in each industry as determined by their score in RobecoSAM’s annual Corporate Sustainability Assessment. [12]

EDF+Business works with leading companies and investors to raise the bar for corporate sustainability leadership by setting aggressive, science-based goals; collaborating for scale across industries and global supply chains; publicly supporting smart environmental safeguards; and, accelerating environmental innovation. [13] In its sixth year, the Environmental Leader Product & Project Awards recognize excellence in products and services that provide companies with energy and environmental benefits, or in corporate projects that improved environmental, sustainability or energy management and increased the bottom line. [12] Based on its corporate sustainability assessment (CSA), an annual ESG analysis of over 3,800 listed companies, RobecoSAM has compiled one of the world’s most comprehensive databases of financially material sustainability information. [12] It is far more difficult, however, to establish rigorous connections between global investment trends and individual investment decisions by international companies. [11] Over 6,300 companies with some 55% of global market capitalization disclosed environmental data through CDP in 2017. [12] This is in addition to the over 500 cities and 100 states and regions who disclosed, making CDP’s platform one of the richest sources of information globally on how companies and governments are driving environmental change. [12] Whether it’s by empowering women, helping the environment, or trying to end poverty, more and more companies are incorporating social responsibility into their overall business strategy. [22] Social responsibility has become increasingly important to companies over the last several years. [22] The companies also published a paper, From Burden to Benefit: Sustainability Data in the Agricultural Supply Chain. [9] Over 3,300 companies were assessed by CDP on their supply chain engagement strategies. [12] Oil and gas industry shareholders are sending a powerful message- methane is a material risk that companies must manage to compete in a capital- and climate-constrained world. [13]

Sustainability is the process of change, in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations. 1 The organizing principle for sustainability is sustainable development, which includes the following interconnected domains: environment, economic and social. [5] While the United Nations Millennium Declaration identified principles and treaties on sustainable development, including economic development, social development and environmental protection it continued using three domains: economics, environment and social sustainability. [5] Sustainability is also a call to action, a task in progress or “journey” and therefore a political process, so some definitions set out common goals and values. 32 The Earth Charter 33 speaks of “a sustainable global society founded on respect for nature, universal human rights, economic justice, and a culture of peace”. [5] As always, population growth has a marked influence on levels of consumption and the efficiency of resource use. 71 86 The sustainability goal is to raise the global standard of living without increasing the use of resources beyond globally sustainable levels; that is, to not exceed “one planet” consumption. [5] At the global level the environmental impact of agribusiness is being addressed through sustainable agriculture and organic farming. [5] Other approaches, loosely based around New Urbanism, are successfully reducing environmental impacts by altering the built environment to create and preserve sustainable cities which support sustainable transport and zero emission housing. [5] The American Public Health Association (APHA) defines a “sustainable food system” 157 158 as “one that provides healthy food to meet current food needs while maintaining healthy ecosystems that can also provide food for generations to come with minimal negative impact to the environment. [5] The underlying driver of direct human impacts on the environment is human consumption. 136 This impact is reduced by not only consuming less but by also making the full cycle of production, use and disposal more sustainable. [5] The concept of Circular flow land use management has also been introduced in Europe to promote sustainable land use patterns that strive for compact cities and a reduction of greenfield land take by urban sprawl. [5] The graph shows what is necessary for countries to maintain an acceptable standard of living for their citizens while, at the same time, maintaining sustainable resource use. [5]

The Challenge of Informing the Sustainable Investor You need to enable JavaScript to view this website. [23] Adopted by the 189 United Nations member states at the time and more than twenty international organizations, these goals were advanced to help achieve the following sustainable development standards by 2015. [5] Gender equality is one of the sustainable development goals (SDGs) that calls for ensuring women’s full participation in political, economic and public life as a target. [11]

Sustainable development consists of balancing local and global efforts to meet basic human needs without destroying or degrading the natural environment. 26 27 The question then becomes how to represent the relationship between those needs and the environment. [5] Sub-domains of sustainable development have been considered also: cultural, technological and political. 2 Sustainable development, is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. 1 Brundtland Report for the World Commission on Environment and Development (1987) introduced the term of sustainable development. [5]

A study from 2005 pointed out that environmental justice is as important as sustainable development. 28 Ecological economist Herman Daly asked, “what use is a sawmill without a forest?” 29 From this perspective, the economy is a subsystem of human society, which is itself a subsystem of the biosphere, and a gain in one sector is a loss from another. 30 This perspective led to the nested circles figure of ‘economics’ inside’society’ inside the ‘environment’. [5]

Other topics that were covered include how the PSI is shaping the global sustainable insurance agenda; managing environmental, social and governance risks in non-life insurance underwriting; key sustainability challenges and opportunities in the life and health insurance business; the significance of sustainability issues to insurance regulation and supervision; and sustainable investment strategies, innovations and trends in the insurance industry. [17] The Rio declaration was signed last 15 May at the event, Shaping the sustainable insurance agenda in Latin America, convened by the PSI and CNseg, and supported by SUSEP. The event brought together leading insurers, insurance regulators and supervisors from 15 jurisdictions, investment firms, international initiatives, UN agencies, business and industry, civil society organizations, and academia. [17] The conference, supported by UNEP FI members, IAG and NAB, will look at approaches to strengthen the role of banking, insurance and investment in contributing to sustainable growth, featuring innovation and market developments across key global financial frameworks and initiatives, including UNEP FI’s Principles for Sustainable Insurance (PSI) and the UN-supported Principles for Responsible Investment (PRI). [17] “For us to achieve a sustainable and low carbon financial sector we need policy and regulatory frameworks that incentivize for more green investments, but also that help us mainstream sustainability factors into finance institutions “core decision making. [17] This should help a broader range of investors access sustainable investments. [17] “In order to maintain that investor confidence in the shift to the clean energy economy and to low-carbon investment portfolios, policymakers, here and abroad, must commit to supporting ambitious climate action and accelerated sustainable investments.” [17] If passed, change of this nature – simultaneously across the entire European investment chain – would constitute ground-breaking progress towards the transition to a sustainable financial system. [17] The goals also include enabling factors–data, risk analytics and technology; risk management, insurance and financial literacy; climate and disaster risk management, and city sustainable insurance roadmaps. [17] The goals are a result of the global partnership between UN Environment’s Principles for Sustainable Insurance Initiative (PSI), the largest collaborative initiative between the UN and the insurance industry, and ICLEI – Local Governments for Sustainability, the leading global network of more than 1,500 cities, towns and regions. [17] “From the 1992 Rio Earth Summit to the launch of UN Environment’s Principles for Sustainable Insurance Initiative (PSI) at the 2012 UN Conference on Sustainable Development in Rio, Brazil has demonstrated unparalleled sustainability leadership,” said Butch Bacani of UN Environment, who leads the PSI, the largest collaborative initiative between the UN and the insurance industry. [17]

The Fiduciary Duty in the 21 st Century programme – launched in 2016 by United Nations Environment Programme Finance Initiative (UNEP FI), the Principles for Responsible Investment (PRI), and the Generation Foundation – will collaborate with Finance for Tomorrow to publish a France roadmap for sustainable finance. [17] An agenda-setting event with the United Nations Environment Programme Finance Initiative (UNEP FI) will take place in Sydney on 23-24 July 2018 to explore the potential for sustainable finance to shape a resilient and sustainable economy in Australia and New Zealand. [17]

Part of UNEP FI’s work in ecosystems management includes creating investable models for investors, as well as providing knowledge, and imparting insight for private finance to contribute to sustainable land use projects. [17] This should provide economic actors and investors with clarity on which activities are considered sustainable so they take more informed decisions. [17]

Its strategy in pursuit of this vision is to mobilise asset owners, asset managers, companies and other key participants in financial markets in support of the business case for sustainable capitalism, and to persuade them to allocate capital accordingly. [17] Companies blessed with forward-thinking, heavy-pocketed customers should focus on delivering maximum value to those customers based on that market’s demand for sustainable products. [6] Companies in highly competitive mass-market industries can win customers by delivering real value in a sustainable way. [6]

Investors? duties and disclosures: The proposed regulation will introduce consistency and clarity on how institutional investors, such as asset managers, insurance companies, pension funds, or investment advisors should integrate environmental, social and governance (ESG) factors in their investment decision-making process. [17] More than six years ago the G&A Institute team decided to focus on the companies in the index to determine their level of (or lack of) ESG / Sustainability / CR / Citizenship disclosure and reporting. [16] Based on its Corporate Sustainability Assessment (CSA), an annual ESG analysis of over 3,900 listed companies, RobecoSAM has compiled one of the world’s most comprehensive databases of financially material sustainability information. [16]

Does embracing corporate sustainability in any way impact negatively on the market performance of these large companies? Well, we should point out that the annual return for the SPX was 22% through 12-13-18. [16] CB Bhattacharya writing in the Harvard Business Review shares his experiences gained in interviews with CEOs and C-suite execs, middle managers and “shop floor” workers in 25-plus companies to understand “why most companies fail to embed sustainability in their business models and what drives success among the handful that do.” [16] He’s developed a three-phase model to help companies understand how to move beyond rhetoric and take ownership of sustainability (walking-the-talk).These are incubation, launching and entrenching. [16] Lise shared many more statistics similar to those above, all stressing the critical need for the private sector to help support the world in the achievement of these global goals. 9,500 companies today have joined the UN Global Compact, and 75% of them have taken action toward achieving the SDGs. [18] The financial sector is increasingly aware of the need to shift capital flows away from companies and activities that contribute to the climate problem and into climate solutions. [17] Twenty-three financial institutions, including banks, have committed to set GHG emission reduction targets in line with the Paris Agreement through the Science Based Targets initiative, and an additional 70 companies in this sector reported to CDP in 2017 that they intend to set a science-based target within the next two years. [17] Now in its 19th year, the well known CR Magazine “100 Best Corporate Citizens 2018” list was just unveiled; this effort recognizes the ESG performance of public companies in the United States. (The publication is now titled Corporate Responsibility Magazine, published by 3BL Media LLC.) [16] These examples will inform you about the conditions required in a certain CSA question to score 90 or above, and the percentage of companies in your industry meeting those conditions in a given assessment year. [16] An observed trend among knowledge workers, especially younger talent that demonstrates management potential, is the desire to work for ethical companies that make a positive impact on society and the environment. [6] Competitive advantage will be gained by proactive companies that recognize the direction of the changes and can make smoother (less costly) transitions to the new legal environment. [6]

Realizing sustainable business goals is an achievement that the public relations department can promote, but in terms of human-resource strategy improving ESG performance can help a company establish an employer brand that will attract and retain top talent. [6] “The finance function holds the key to unlocking the business value of these strategies, and are crucial to pushing the sustainable agenda in the U.S. as the industry continues to mature.” [16] The writer set out characterizing the global coffee industry as one that has been mostly “unsustainable” but lately, major coffee producers have been working to create more sustainable business models. [16]

Banks–like any other financial institutions and businesses–are interested in taking advantage of the new business opportunities afforded by the low-carbon transition, through financing of sectors such as sustainable transportation and renewable energy. [17] In implementing the Principles, signatories contribute to developing a more sustainable global financial system. [17] They cover natural disasters, health and pollution, social and financial inclusion, protecting natural and cultural heritage sites, resilient infrastructure, sustainable energy and resource efficiency, and nature-based solutions. [17]

The goals set the global agenda for the industry and cities in the context of economic, social and environmental sustainability–or sustainable development. [17] The Commission aims to make the financial sector a powerful actor in fighting climate change and meeting the sustainable development goals by further aligning the industry with the Paris Agreement and the UN 2030 Agenda for Sustainable Development. [17] According to the Sustainable Finance report from the European High Level Expert Group, 75% of the energy efficiency investment gap to meet these goals can be found in the real estate sector. [17] The green and sustainable finance has to contribute to a shift in financial flows towards a low carbon and inclusive economy, in line with the Paris Agreement and the Sustainable Development Goals. [17] With more than 60 members and international observers, Finance for Tomorrow is an initiative launched in June 2017 within Paris EUROPLACE to make green and sustainable finance a driver of the development of Paris Financial Center and position it as a leading financial center on those issues. [17] It may serve as the basis for the future establishment of standards and labels for sustainable financial products, as announced in the Commission Action Plan on Sustainable Finance. [17] On May 24 th the European Commission released its first legislative package under its Action Plan for Sustainable Finance, including proposals on a sustainable taxonomy and investor duties. [17]

UNEP FI will participate in the Climate week 2018 “Sustainable Santiago – together against climate change” that will take place in Santiago de Chile from 17 to 20 October 2018. [17] Our tutor shared with participants a case study developed by UNEP FI / REDD+ describing a methodology to develop a financing offer in the sustainable agricultural sector, specifically in cocoa. [17]

The AAIB joined UNEP FI in April this year becoming the second member from Egypt to join our global sustainable finance network. [17] UNEP FI and INCAE Business School/Ecobanking Project delivered a successful two-day training workshop on Sustainable Finance to Caja de Ande Insurance and Caja de Ande in San Jose (Costa Rica) on 25 and 26 June 2018. [17] Hassan Abdalla, CEO of AAIB said in a statement that “The UNEP FI is bound to have an instrumental role in advancing Arab African International Bank’s efforts that started as early as 2003 to substantiate and scale sustainable finance to become an industry movement in Egypt and the MENA region”. [17]

The legislative package follows recommendations from the High Level Expert Group on Sustainable Finance (HLEG) in December, which was led by UNEP FI’s Co-Chair Christian Thimann. [17]

As we continue to be encouraged by the rising interest in sustainable investing by mainstream institutions, and the broadening interest of corporate executives and boards in corporate sustainability, responsibility, citizenship, ESG (et al), we are also intrigued by the more complex questions that arise. [16] The following year (2013) we tracked the 500 companies? year 2012 reporting activities – and found a very encouraging trend that rang a bell with our sustainable investing colleagues: a bit more than half of the 500 were now publishing sustainability et al reports. [16]

RANKED SELECTED SOURCES(23 source documents arranged by frequency of occurrence in the above report)

1. (45) editor United Nations Environment Finance Initiative

2. (21) Business Case | Sustainability Update

3. (19) Sustainability – Wikipedia

4. (9) Business sustainability starts with “why? | Asia Times

5. (8) Owens Corning – Owens Corning Recognized for Its Sustainability Leadership by RobecoSAM, CDP and Environmental Leader

6. (7) AVPN Sustainable-Investing | Standard Chartered

7. (7) Investment Products and Services Launches | PLANSPONSOR

8. (5) Investors: here’s what a sustainability leader looks like — and acts like | GreenBiz

9. (4) Why Sponsors Include Sustainable Investing in 401k Menus – The 401(k) Specialist

10. (4) Investing in Sustainable Fisheries | Conservation Finance Network

11. (3) foreign direct investment | World Bank Blogs

12. (3) Blog | EDF+Business

13. (3) Sustainability at Singtel – Singtel

14. (3) Q&A: How Wrangler, MyFarms Plan to Leverage Field-Level Sustainability Data | Sustainable Brands

15. (2) The Future of Sustainable Business: Making the Global Goals Local Business | npENGAGE

16. (2) Sustainability Strategy | Sustainability at Nissan | NISSAN

17. (2) Why is social responsibility important to a business? | Investopedia

18. (1) Lyft follows Ubers steps, enters bike-sharing business with Motivate deal | Sustainability

19. (1) New-To-Market ETF: VETS – Pacer Military Times Best Employers ETF (NASDAQ:VETS) | Seeking Alpha

20. (1) Maja – Digital and Operations Turnaround

21. (1) What Are the Benefits of Going Green for a Business? | Chron.com

22. (1) The Challenge of Informing the Sustainable Investor

23. (1) Sustainability Tips for the National Conference & Business Fair — WBENC