October Monthly Briefing: CFO fluency in sustainable business Our views on what matters |
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With environmental concerns and climate-change mitigation experiencing a meteoric rise up the corporate agenda, institutional investors are increasingly adopting sustainable investment portfolios, offering ‘green’ products, and looking at new technologies to model and predict climate change scenarios. But more importantly, we’re seeing a fundamental shift in how businesses are being valued.
CFOs are at the centre of this shift as they move from traditional ROI-led financing and investment decisions to consider valuations that incorporate longer-term ESG-related factors. Already ESG investing accounts for 25% of assets under management in the US, and $11.6 trillion globally, up from $8.1 trillion in 2016. Expect that trend not just to continue but accelerate.
Accompanying that trend is a growing pressure on CFOs to think and operate more sustainably. At the heart of this is the need for a clear position on the debate about the purpose of business, and whether it’s primary purpose should be to maximise profit for its owners, or help generate long-term, sustainable value to all stakeholders – which the Business Roundtable in the US, a group of CEO’s from America’s businesses, publicly endorsed last month.
In this month’s Briefing we look at how a number of major global businesses are taking a fresh look at defining their value. More pertinently to the CFO community, we present some practical questions which need to be asked about the role and contribution they want their organisation to play in the world beyond their own front door, and which ultimately affect all of us.
Neil Davy CEO, Corporate Citizenship  |
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|  | MSCI acquires Carbon Delta to strengthen its climate risk capability
With the objective to create a new climate risk metric, the acquisition is a further example of how climate change is becoming one of the most important investment factors.
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 | Morgan Stanley survey finds investor enthusiasm for sustainable investing at an all-time high
With 85% of individual investors in the US expressing interest in sustainable investing, corporate ESG practices are increasingly seen as leading to higher profitability.
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 | Major US companies call Amazon, Apple and Walmart to account over social responsibility commitments
How a full-page New York Times ad, funded by the certified B Corporations, has put the spotlight on companies making statements without meaningful action.
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 | Corporate Foundations Breakfast: Incubators
for innovation?
Tuesday, 5th November
Join us for a breakfast discussion where we will discuss the issues raised in our research, the ambition for Foundations and the opportunities to drive change for the better.
Read More and RSVP |
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 | The CFO sustainability
We are witnessing a fundamental rethink of how businesses define value, moving beyond pure profit maximisation to a focus on delivering value to stakeholders. This has big implications for the role of business in society. It has the potential to transform businesses, as well as the broader systems on which businesses rely, to maximise value to society. CFOs are at the centre of this shift.
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 | Friend or foe – the role of the CFO in sustainable business If we’re talking about business success that endures, focusing on the money is the answer; but when discussing sustainability, will this result in more money in, or less money out, now or in the future? Read More |
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 | LBG Annual Conference 2019: Tuesday, 15th October We are delighted to announce the agenda for this year's LBG Annual Conference with topical discussions and hands-on workshops. There is an exciting line-up of guest speakers and we are delighted that, Steve Kenzie, Executive Director, UN Global Compact Network UK will join us. * This is a member-only event, to network and share stories with each other. Read More and RSVPAre you not a LBG member yet?
Get in touch with us atlbg@corporate-citizenship.com |
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