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Titles Matter to Provide Context and Direction - For Corporate Leaders and the Providers of Capital

Shorthand terms do matter – the “titling” of  certain developments can sum up trends we should be tuning in to.  Some examples for today: Sustainable Capitalism  - Stakeholder Primacy – Sustainable Investing – Corporate Sustainability. Corporate ESG Performance Factors.

These are very relevant and important terms for our times as world leaders grapple with the impacts of the coronavirus, climate change challenges, conditions of inequality, have/have not issues, questions about the directions of the capital markets, issuer access to long-term capital…and more.  And, as influential leaders in the private, public and social sectors consider the way forward.

The concept of shareholder primacy was more or less unchallenged for decades after World War II with the rise of large publicly-traded corporations – General Electric! -- that dominated the business sector in the USA and set the pace other companies in the capital markets.

But as one crisis followed another – the names are familiar -- Enron, WorldCom, Wells Fargo, Lehman Bros and Bear Stearns, Purdue Pharma – investors began to seriously adjust how they evaluate companies they will provide vital capital to. 

Investors today in the time of great uncertainty are focused on: whose equity issue to put in portfolio that will stand the test of time; whose bonds will be “safe”, especially during times of crisis; which corporate issuer’s reputation is not at risk; where alpha may be presented as portfolio management practices are challenged by macro-events.

This is about where the money will be “safer” overall, and provide future value and opportunity for the providers of capital – because there is great leadership in the board room and executive offices.

As we think about this, the questions posed in context (virus crisis all around) are:  Why has sustainable investing gone mainstream?  What can boards and C-Suite do to exert leadership in corporate sustainability?  Where is sustainable capitalism headed?  How do we identify great leadership in the corporate sector?

Our choice of featured stories up top for you this week provide some interesting perspectives on these questions.

And, illustrate the embrace of sustainability as a fundamental organizing principle today of great corporate leaders.  As well as explaining the continuing embrace of sustainable investing approaches of key providers of capital as a risk management discipline and proof of concept of acceptance of stakeholder primacy / sustainable capitalism in the 21st Century.

The other stories we’ve curated for you this issue help to broaden these perspectives that are offered in these challenging times from thought leaders. 

As the ancient blessing/curse goes:  Maywe live in interesting times.

Featured Stories - The Two Critical Halves of Sustainable Capitalism, Issuers and Providers of Capital...

Concept: A well-structured sustainability committee not only serves a critical coordinating function, but also steers sustainability right to the heart of the company and the company’s strategy. Let’s take a look at how boards at some of the world’s leading companies have tackled this…

How Can Boards Successfully Guide a Transition to Sustainable Business?
Source: Sustainable Brands - The UN’s Sustainable Development Goals are set to unlock $12 trillion in new business opportunities by 2030. Yet many companies are still stuck in the past. Over the next decade, businesses can either adapt and thrive or deny and...

The evidence suggesting that boardrooms should prioritize sustainability is growing rapidly. On the one hand, there are increased risks associated with not prioritizing sustainability. On the other hand, the figures show the huge opportunities sustainability offers businesses. As a result, more and more, sustainability is positioned at the top of boards’ agendas.

Boards must put sustainability at the top of their agenda to thrive
Source: GreenBiz - Amidst the global COVID-19 crisis, there have also been glimmers of hope. A significant one is its impact on climate change. It’s estimated that global carbon emissions from the fossil fuel industry could fall by 2.5 billion...

During a recent CECP CEO Roundtable, current and former CEOs gathered virtually and shared insights from their perspectives on the business landscape. In these informative discussions, one executive noted that leadership, more so than having the right systems in place, is and will be integral as we navigate uncharted territory:

Pivoting with Moral Leadership
Source: CECP - During a recent CECP CEO Roundtable, current and former CEOs gathered virtually and shared insights from their perspectives on the business landscape. In these informative discussions, one executive noted that leadership, more so...

Bears watching:  On 8 April 2020 the European Commission published a consultation paper on its renewed sustainable finance strategy (the “Sustainability Strategy”). The Sustainability Strategy is a policy framework forming a key part of the European Green Deal, the EU’s roadmap to making the EU’s economy sustainable, including reducing net greenhouse gas emission to zero by 2050. Despite the inevitable recent shift of focus to measures dealing with the COVID-19 crisis, this remains a top EU priority and the outcome of this consultation may significantly affect :

European Commission Consultation on the Renewed Sustainable Finance Strategy
Source: National Law Review - The Sustainability Strategy is a policy framework forming a key part of the European Green Deal, the EU’s roadmap to making the EU’s economy sustainable, including reducing net greenhouse gas emission to zero by 2050. Despite the...

G&A Institute Sustainability Update™
Informative, insightful, thought provoking
Governance & Accountability Institute's blog focusing on the sustainable world evolving daily before our eyes. Read it, absorb it, question it and challenge.

Confluence: Coronavirus Crisis, Climate Change, Global Warming, Sustainable Investing, Corporate Sustainability & Citizenship…Shaping These Times

Today: Huge Financial Flows as the U.S.A. Aids the Business Community and Workers, Families…How Is the Flow Facilitated?

Addressing Supply Chain Challenges in the COVID-19 Era

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G&A RESOURCE PAPERS

About Human Capital Management & Possible Related Disclosures that Might Be Mandated by the Securities & Exchange Commission

State Street Global Advisors (SSGA): The Important of the R-Factor

Climate-Related Corporate Risk Disclosures Resource Guide

Analysis Of The Business Roundtable Companies ESG Reporting Practices Resource Paper

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G&A RESEARCH

FLASH REPORT: 60% of Russell 1000® Are Publishing Sustainability Reports, G&A Institute’s 2018 Inaugural Benchmark Study Shows

FLASH REPORT: 86% of S&P 500 Index® Companies Publish Sustainability / Responsibility Reports in 2018

Learn More About G&A Research

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G&A IS THE GRI DATA PARTNER FOR USA, UK & IRELAND

Sustainability Standard Setters & Policy Makers

• New Report Shows COVID-19 Puts Sustainable Fashion At Crossroads(Source: PR Newswire)
• 3 more rules for sustainable tourism(Source: Treehugger)
• COVID: Addressing Workplace Challenges on World Day for Safety & Health at Work (Source: ISO)

JUMP TO MORE Sustainability Standard Setters & Policy Makers

ESG / Sustainable & Responsible Investment

• Sustainable Finance Targets Matter More Than Ever: Three Lessons for Banks(Source: Responsible Investor)
• BlackRock launches its first global ESG total return bond fund(Source: International Investment)

JUMP TO MORE ESG / Sustainable & Responsible Investment

Corporate Sustainability / ESG

• Why This CEO Thinks Prioritizing Sustainability Can Help Us Get Through The Recession(Source: The Rising)
• 4 Female-Founded Sustainable Brands That Will Make You Feel Hopeful About the Future(Source: Yahoo Finance)

JUMP TO MORE Corporate Sustainability / ESG

From the Agora: Consumers & Sustainability

• Clever’s Green Glossary: 46 Sustainable Key Words to Help You Shop Smarter(Source: Architectural Digest)
• Despite slipping sales, sustainable DTC brands claim they’re well-positioned(Source: Glossy)
• 10 promising sustainable food startups to watch in 2020(Source: EU Startups)

JUMP TO MORE Consumers & Sustainability

Global Sustainability : Forward Momentum!

• Showcasing A Sustainable Society: Tokyo 2020 Releases Its Sustainability Pre-Games Report(Source: Olympic Games)
• Management of natural assets is key to sustainable development: Inclusive wealth provides the way forward(Source: UN Environment)
• How the Sustainable Development Goals can help cities focus COVID-19 recovery on inclusion, equity, and sustainability(Source: Brookings)

JUMP TO MORE Global Sustainability : Forward Momentum!

Sustainability Data That Matters

• Digital agriculture paves the road to agricultural sustainability(Source: The Cattle Site)
• New Duke Energy Reports Show Progress Toward Ambitious Climate and Sustainability Goals(Source: CSRWire)

JUMP TO MORE Sustainability Data That Matters

The Sustainability Highlights eNewsletter is prepared by Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Copyrights for other providers are noted where appropriate. Please credit the source if quoted. Content © 2009 - 2020 - All Rights Reserved.

Governance & Accountability Instiute is the "Sustainability Headquarters™" for clients in the corporate, investment, public and social sectors. Based in New York, G&A is a for-profit consulting organization providing a range of value-added strategies, services and resources related to ESG & sustainability to clients in the corporate and capital markets communities. For G&A's full range of services, click on each of the links: Sustainability / ESG Consulting Services, Communications & Recognition Services, Investor Relation Services. For more information, visit www.ga-institute.com or contact us at 646.430.8230 or info@ga-institute.com.