Commentary: Decision Systems, Investments, and Operations
In this issue, we will cover our third regenerative pillar, Decision Systems. Rather than a narrative, we decided to include our video podcast on this topic with guest Jake Walko, the Head of ESG Investments and Stewardship for the Thornburg Investment Management Group. In this conversation, Jake discusses the importance of comprehensive systems for decision making and how one can determine what investments might have the most impact when viewing through an ESG lens. Also, Jake covers how the CFO plays the leadership role for the C-Suite when thinking about ESG strategy and how to partner with the Chief Sustainability Officer.
To learn more about this topic, please join us at the INTEGRATE21 Conference November 8-10at Fordham University in New York City.
P.S. The Commentary in our previous edition was not as clear as intended: It is an integral part of the rCFO Framework that climate science and data be used as a key metric in goal setting and planning.
As CFO of SAP North America, Anthony is steering the business in a territory that spans the United States and Canada, fostering operational excellence and overall financial health of the region. His role extends to driving the cloud business in SAP’s largest market and leading strategic initiatives as part of the Global Finance leadership team. Further, Anthony has a commitment to and a passion for the role that sustainability has in the overall finance function and he recently penned an article that shares why CFOs should lead the way on sustainability. The way forward can feel messy, time-consuming and amorphous for CFOs, but this is an extraordinary time in history to tackle these challenges. Thank you, Anthony, for your leadership on these issues.
Recent Insights and News for CFOs
The importance of ESG within your business strategy. For decades, corporations have talked about interlinked goals promoting people, planet and profits, but rarely found the opportunity — or will — to walk the talk. When corporate social responsibility (CSR) became a statutory obligation through the Companies Act 2013, the needle moved somewhat, but not quite enough. Governance and Investing
The Biden Administration wants to relax existing rules on ESG in retirement funds. President Joe Biden has signed an executive order on climate-related financial risk that includes a directive to the Labor Secretary to consider suspending, revising or rescinding the “Financial Factors in Selecting Plan Investments” final rule regarding ESG investments that was published during the last days of the Trump administration and has been criticized for its potential in limiting the inclusion of ESG funds in retirement plans. Reporting and Investing
The sustainable finance market has burgeoned to record levels in the first half of this year, according to a report out on Monday from financial markets data provider Refinitiv. First Half 2021 found that sustainable finance activity in debt and equity capital markets, as well as mergers and acquisitions (M&A) activity involving sustainable companies, all reached record levels in the first six months of the year.Investing
How can business leverage the power of design to help achieve SDGs?See a list of sustainable design solutions aligned with these SDGs that you can incorporate into your facility design that will help minimize the environmental impact of your operations while meeting your organization’s sustainability goals. Investing
For those of you who would like to proffer your CEO for The MO 100 —Presented by Big Path Capital, impact investing’s investment bank, the MO 100 shines a spotlight on the catalysts (CEOs) who are sparking positive environmental and social change through the private companies they run. Governance
Is it time for a Task Force on finance-related climate impacts? The G7 has agreed to make the recommendations of the Taskforce mandatory, with a good chance there will be global agreement by the time that COP26 comes around in November. But to ensure planetary stability, we must urgently shift focus to the other side of the coin: the impact that business and finance is having on the climate. Governance, Investing, and Reporting
Featured ESG Investor (in memoriam)
Rest in Peace, Peter Crane.
Peter was the founder of Planet Positive. Peter was dedicated to creating a regenerative future for humanity, being at one with nature. He was an amazing advocate for the planet and humanity and he is missed by all those he came in contact with. Peter’s team continues active engagement with Planet Positive as a venture capital think tank and investment advisory firm founded by industry veterans to address humanity’s most pressing needs and its symbiotic existence with nature. If inclined, the Planet Positive folks do a weekly session with great entrepreneurs known as their weekly wisdom series that we recommend.
Featured ESG Investment
Iron Ox has reinvented farming to grow the most delicious, consistent produce––for everyone, with the tagline “GROWN BY ROBOTS WITH LOVE.” Their growing process takes a human-led, robotics-first approach to ensure every plant is grown at its best from seed to harvest. Iron Ox has designed its growing system around the sun, an approach that uses less energy than other modern forms of farming. The Iron Ox hydroponic growing system uses 90% less water over traditional farming while growing 30 times the amount of crops per acre of land. This innovation is beginning to scale.
Up & Coming Events
See most of the U.S. environmental finance events in this one place.
Integrate21: The conference for regenerative financial executives - Transforming Corporate Finance to Regenerative Finance, through ESG. | Nov. 8-10 — Fordham University in New York
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