Relocation of capital, investment risk, and the reshaping of finance: a glimpse at the economic impacts of climate change, threatening almost every industry and aspect of our economy.
BlackRock Chairman and Chief Executive Officer Larry Fink’s 2020 Letter to CEOs focuses on that threat, proposing that without shifting from business as usual, companies will not survive to deliver profits in such an environment.
Shared value is the vehicle for that shift: a mechanism for adopting a purpose that serves all stakeholders. In a changing economic climate, posing unprecedented disruption, shared value offers a means to increase financial returns through solving the very problems that threaten us; a vital strategy for businesses hoping to flourish over the coming decades.
In his response, shared value co-creator Mark Kramer posed the question to business; is your organisation in a position to thrive in a global transformed by climate change, where sustainability is essential to both business and investors?
In Australia, we are seeing the beginnings of this shift, with the Myer Foundation committing to increasing their responsible investments from fifty to one hundred per cent by 2022, in alignment with their shared value thesis.
It is our hope that investors and businesses will do likewise; adopt a sustainable, inclusive strategy in response to the unknown risks of tomorrow.