The Sustainable Investment Dilemma - Amy Clarke, Troy Mortimer & JP Dallmann
- “If we can create a much healthier relationship with our wealth, and the purpose of our wealth, then actually we should be able to fix, repair, increase resilience, and ultimately regenerate the relationships with each other and with nature.” Amy Clarke
- 50th anniversary of Milton Friedman's seminal essay that was penned and then printed in the New York Times Magazine
- “there is a real sense that the values and belief systems upon which we have built this global finance system aren't right, they're not fit, they're not robust.”
- There is the rise of the BCorp movement and the use of BLab tools during the lockdown has risen exponentially.
- “Impact investing is about helping wealth holders reconnect with the purpose of their wealth. The word wealth comes from two old English 13th century old English words, meaning well being, we've lost the well being and wealth along the way. And it's become singularly focused on financial performance.” Amy Clarke
- “I see this as a behavioral inertia challenge. Financial institutions are comprised of individuals, we need to look at how we incentivise these individuals, how we are rewarding them and how we associate value with their actions.” Troy Mortimer
- We can transition not all but a lot of companies through to becoming a force for good.
- “We need a just transition, quickly and effectively where finance, regulation and policy play a role. We need a carrot and a stick.” Troy Mortimer
- How do we move beyond (Only) preaching to the converted?
- The later we leave it, the steeper the transition is going to be - Mark Carney
- The more we pushback regulation deadlines, the more uncertainty it creates. Ultimately, its better to takes the operational learnings in Covid and behaviour change and apply it to compliance and regulation.
- Bernard Looney, CEO of BP, a different style of leadership. Moving away into a more human style of leadership.
- We need to use AI to help change behaviours in the right direction.
- Passive ESG funds should be able to demonstrate intent.
- Its important to populate the empirical evidence and convince the skeptics of the economic data with the language that they know.
- “We have outperformed the benchmarks. There is more than enough data to show that these type of investments are resilient on up and down cycles, which is why we are seeing huge flows into ESG.” Amy Clarke
- “As a bellwether for market sentiment, its phenomenal, because we can now see everybody is looking for safe harbours and safe harbours of businesses with these kind of resilience built in.”
- “Investors should be thinking - Well, I understand that there is some volatility right now, but in the mean time, I’m investing for something larger. What you wil see is that over the long-term, it starts to come back in financial returns.” Troy Mortimer
- As Tim Geithner said, at least in relation to the US financial crisis and how they had resources large enough to do anything about that crisis , but I think financial resources will not be enough in relation to the Sustainability challenge we face. And we will not have time to react and fix things. But we must be proactive. JP Dallmann
[16:50] Preaching to the converted and reporting Positive/Negative Impact
[21:40] The complexity of the Sustainable Energy supply chain
[34:00] The mistrust created by media and digital
[46:00] We need to be proactive - Financial resources are not enough
PANIC : The untold story of the 2008 Financial Crisis, by HBO
Notorious RBG - Ruth Bader Ginsburg https://en.wikipedia.org/wiki/Ruth_Bader_Ginsburg
OUR PLANET: TOO BIG TO FAIL - https://www.wwf.org.uk/updates/our-planet-too-big-to-fail
Harvard Business School Impact-Weighted Accounts
Big Four ESG reporting framework standards. Deloitte + Ernst & Young + KPMG + PwC
rethinking capital on LinkedIn
More about the guests - Bios:
Amy sits on the board of B Lab UK & Big Issue Invest. She is also an Advisor to the Ocean Plastics Leadership Network and sits on the Development Council of the Future Fit Benchmark - the new benchmark for investors and companies driving towards a future fit world - and the Steering Committee of the Global Ethical Finance Initiative (GEFI).
Connect with JP Dallmann on Linkedin, Twitter, or Instagram.
Contact us to help you transition into Sustainable & Impact Investing - ILA & Partners