Last week at SB’22 San Diego, over 1K sustainability practitioners converged to share insights, tools, inspiration and opportunities for collaboration with the goal of building a
regenerative future for all. Here, we hear highlights from our day four keynotes, which featured glimpses into the next frontier in finance and
capitalism.
Inherent in the theme of SB'22 San
Diego,
“Recenter and Accelerate,” is the ability to not only draw from past success but
also leave behind what isn't working. Rather than implementing incremental fixes
to a broken system, we can now reimagine and rebuild the system as a whole. On
Thursday afternoon, a series of plenary discussions explored opportunities for
new ways of thinking about leadership, economic systems and collaboration.
Finance must embrace sustainable growth potential
A promising development over the past several years is the deeper engagement of
chief financial officers (CFOs) as primary
drivers
of Environment, Social Governance (ESG) strategies. Procter & Gamble CFO
Andre Schulten and Net Positive
co-author and emcee Andrew Winston
discussed the role of the CFO in opening new sources of finance for greater
sustainable development.
New climate disclosure
requirements
proposed by the SEC put sustainability front and center for many CFOs; so,
ready or not, CFOs need to become ESG literate as more and more investors are
seeking
answers
on climate-related business risk. But understanding and communicating risks is
only one part of the new job description, Schulten said; and CFOs must embrace
the growth potential that can be generated through sustainability and learn to
think long-term
ROI
vs quarterly earnings alone.
L-R: Andrew Winston, Climate Innovation Capital's Nelson Switzer and Apollo's Dave Stangis
Aligning Value Management and Regenerative Practices
Join us as Regenovate co-founders Chris Grantham and Adam Lusby lead an interactive workshop on how to rethink value in the context of regenerative innovation by linking value to the dividends and resilience that come to an organisation from enhancing system health — Thurs, May 9, at Brand-Led Culture Change.
Speakers from Goldman Sachs, Climate Innovation Capital and
Apollo then discussed the massive amount of capital
that credit and investing firms provide to ESG. Traditionally conservative, the
financial world needs to expand KPIs and metrics to expand materiality of
long-term investments. Expanded materiality must also be communicated
effectively with investors. Governance — the G of ESG — must play a key role in
bringing structure to the rapidly scaling titles, ratings and frameworks that’s
creating an anarchy of data.
Regenerative capitalism — the next frontier
The growing gap between ESG commitments and real
action
results from the sustainability world asking the wrong questions, said John
Fullerton, founder of the
Capital Institute. Ironically, emissions are
still skyrocketing in proportion to ESG commitments.
“Obviously, if ESG is our strategy to address climate change, it ain’t working,”
he asserted.
The destination, he said, is an economy that works the way that life works — the
living-systems process that creates thriving and intimate connections as an
outcome. But the owners of our enterprises aren't even in relationship with us.
Empowered participation of all people is required for planetary and social
health, Fullerton said.
As Winston pointed out, “What we are fighting against is story, the narrative
that what matters is short-term shareholder value, GDP, the stock market — and
that’s it.”
Stuart Williams is founder,
CEO and Chairman of In Place Impact. For him,
modern business leaders, owners and managers are the most important people in
the sustainability space because of the massive scale and influence companies
have in everyday lives. Therefore, business should be the primary driver of
creating stronger, more just communities and safeguarding the climate.
“Does business need to be additive? Yes, it does. Does capitalism have to be
more inclusive? Yes, it does. But [business and capitalism] are not the
problems; they are actually the solutions,” Williams stated.
An inclusive and regenerative model of capitalism must employ intersectionality,
Williams explained — ensuring that all stakeholders have a clear line of sight
into each other.
Finding common ground through business and empathy
L-R: Leonard Robinson, Columbia University's Danielle Azoulay and Kevin Wilhelm
Finally, the discussions shifted from the financial to the interpersonal —
specifically, the importance of taking the time to deliberately interact with
those with opposing viewpoints, which can build incredible opportunities that
are often missed when we blaze ahead in pursuit of our own grandiose goals. As
Kevin Wilhelm of Point
B pointed out, gridlock occurs when we focus solely on
changing minds; but discovering what people most value and connecting your
solution to their pain points is how partnerships can span across the aisle.
Climate change can be about soil health, water and business resiliency — all of
which relate to solutions for both climate and business.
“The wolf will chase the rabbit, the rabbit will run from the wolf; but neither
one of them wants the forest to burn down,” said Leonard
Robinson, Partner & Chief
Sustainability Strategist at SEMCO.
But, he added, there are some non-negotiables needed for saving the planet — so,
building common ground should never distract from implementing solutions the
world needs now.
Published Oct 24, 2022 11am EDT / 8am PDT / 4pm BST / 5pm CEST
Christian is a writer, photographer, filmmaker, and outdoor junkie obsessed with the intersectionality between people and planet. He partners with brands and organizations with social and environmental impact at their core, assisting them in telling stories that change the world.