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Dr Sally Uren, CEO of sustainability non-profit Forum for the Future, has been awarded an OBE (Officer of the Most Excellent Order of the British Empire) award for services to sustainability.

Forum for the Future specialises in addressing critical global challenges by catalysing change in key systems we all rely on, such as food, apparel, energy and shipping. The organisation convenes unique industry-wide collaborations to drive change, by partnering with businesses and other organisations to help them lead by example, and by building a global community of pioneers and change makers.

Dr Uren said, “I’m totally delighted and honoured by the award. It provides important recognition of the urgent need to address critical challenges that face our world today, and of Forum for the Future’s work in tackling these issues head-on to create a more sustainable future.”

This accolade for Dr Uren comes at a time when Forum for the Future is consolidating its 20 plus-year track record of working with pioneering businesses such as Kingfisher, M&S, Unilever, US retail giant Target, and others to address complex challenges. From its four offices in the UK, US, Singapore and India, the organisation has become known for its systems approach to sustainability, and for its expertise in tracking future trends. It is set to release a new Future of Sustainability report for 2018, highlighting dynamic megatrends that will play both positive and negative roles in shaping the global future.

Dr Uren said, “We live in a rapidly changing landscape where business as usual won’t deliver the scale of the ambition described in the Sustainable Development Goals. In these shifting times, in order to catalyse large-scale change at the speed required, we need more collaboration and more systems thinking. Only by working together can we create new, more sustainable patterns and reinvent the way the world works.”

Mr Paul Polman, CEO of Unilever, a founding partner of Forum for the Future, said, “During her time at Forum for the Future, Sally has provided invaluable support and advice to Unilever, both to our local UK business and globally. She has pioneered practical ways for companies to engage on creating wider change at scale with others – peer companies, NGOs and government. She has built strong relationships, and is widely admired at senior levels in many leading UK companies. She is making a significant contribution in helping to address one of the biggest challenges we face today – how to achieve sustainable growth – and she is well worthy of recognition for the influence and impact she is having.” 

Dr Uren joins an illustrious group of people recognised by the Order of the British Empire for their pioneering work in sustainability. This includes Forum for the Future Founder-Director Sara Parkin, who was awarded an OBE in 2001 for outstanding services to sustainable development.

The Investiture Ceremony, in which Dr Uren will receive her insignia from a senior member of the Royal Family, will take place later this year.

To find out more about Forum for the Future’s work in sustainable development, visit www.forumforthefuture.org.

Forum’s Future of Sustainability 2018 report is due to be released in January 2018 – for updates please follow @Forum4theFuture on Twitter.

Hasbro, the huge international board game and toy manufacturer, used only renewable energy in 2016 for the second consecutive year in the US, and all activities in its US operations were carbon-neutral.

The Rhode Island-based company, whose signature product is Monopoly, the world’s best-selling board game, makes the claim in its annual ethics report covering 2016.

The company is similarly proud that it has had no product recalls for nearly a decade.

On gender equality the report announces that two of the three directors Hasbro added in 2016 were women, and that at October 2017 five of its 12 board members were female.

Hasbro attaches great importance to its social role. The report says that through grant-making, philanthropic partnerships, product donations and employee volunteering the company has made a lasting impact on more than 3.8 million children and families worldwide.

In detail, financial and product contributions exceeded $14m (£10.5m, €11.9m) in 2016 and 93 per cent of its employees gave volunteer service.

Hasbro’s ethical record earned it top placing in the 100 Best Corporate Citizens List for 2017 published by CR Magazine, one of the leading business rankings in the US.

The company’s short-term targets are to achieve 100 per cent renewable energy use and carbon neutrality in its operations worldwide by the end of 2017, to audit all its third-party factories annually through its ethical sourcing programme and to remedy shortcomings in partnership with them.

In the longer term, Hasbro’s 2025 goals for its worldwide operations, based on 2015 figures, are to cut landfill waste by half, water consumption by 15 per cent, and energy use and greenhouse gas emissions both by 20 per cent. 

At the same time it wants to raise the number of its women directors globally to 50 per cent and to increase its hiring of minorities in the US to 40 per cent.

When the achievements and targets in the 2016 report, called Playing with Purpose, were published, Hasbro chairman and chief executive Brian Goldner said: “Our deep commitment to CSR reflects our desire to help build a safe, sustainable world for future generations.

“We measure our success not only by our results but also by how we achieve those results.

“Through play and responsible business we are fulfilling our purpose to make the world a better place for children and their families.”    

Formerly the National CSR Awards, the Global Good Awards isn’t just about recognising big business for responsible and sustainable practices. It seeks to reward change in all organisations, big or small; building platforms to learn, share and progress ideas; and encouraging the development of ethical business practices.

From free, expert feedback, to great networking opportunities; from concessions to make the awards accessible to small businesses, to a carbon balanced event; here’s why you should consider entering.

Walking the talk: these awards practice what they preach. The 2017 event boasted many sustainable practices including:

• All marketing materials printed on 100% recycled and carbon balanced paper from Denmaur (Revive100), by carbon positive printing company, Seacourt.
• A sustainable Pescatarian menu, with event food waste donated to the homeless at the end of the evening via City Harvest London.
• Hosted at Lord’s, which runs on 100% renewable energy.
• ‘Eco-tie’, fair fashion dress-code. Be it sustainable cotton, upcycled or handed down, guests were encouraged to wear something colourful with a conscience.

The 2018 Awards’ event will be taking things much further. It will be carbon balanced through the World Land Trust (including delegate travel); the beautiful glass awards will all be made from re-used Belu water bottles from the 2017 event as well as off-cuts of  glass by Siobhan Jones; the menu will be vegetarian and vegan, with vegan wines; and a percentage of awards entries will also go to Charity of the Year, Royal Marsden.

Simple entry process, free feedback: a wide range of categories, with simple, straightforward entry processes that provide feedback to all entrants, totally free of charge. Entries are powered by the online platform Awardstage – an easier experience for both entrants and judges.

Experienced judges: the panel of judges have strong and varied experience in sustainable development, plus specific expertise that is matched to the relevant award categories. This ensures all entries receive a thorough and expert evaluation and detailed feedback.

Concessions to enable all: some of the most innovative ideas come out of the smallest of organisations, so offers and discounts are considered for both entries and ceremony ticket sales to make sure it’s an all-inclusive event.

An all-inclusive programme: ALL organisations can enter from large corporates to small seed-funded organisations and community initiatives. Projects from large and small organisations ‘can’ be compared to each other as all entries are considered based on the resources used, and not purely on the size of the project.

Charity of the Year: £10 from every entry and £5 from every ticket sale* will be donated to the Royal Marsden Cancer Charity. (*If the donation presents a policy issue, another charity can be selected).

Business benefits: in addition to the PR opportunities, a win, short-listing or nomination can act as a 3rd party endorsement for your business. Then there’s employee motivation: awards recognise the hard work and achievements of your employees, so winning one can help boost staff morale and improve motivation. Millennials place great importance on how ‘good’ their prospective employer is too: so an award win can help you attract talent.

Entries open on the 1st December 2017 and close 2nd February 2018. You can find out more here.

Anyone wishing to be part of the Global Good revolution and the unique awards programme can contact Commercial Director, Richard Roe on 07776 206077 or email richard@GlobalGoodAwards.co.uk.

For entries and other enquiries, contact Founder, Karen Sutton: karen@GlobalGoodAwards.co.uk.

What makes an organisation suitable for social investment?  This is a question we’re often asked by potential investees. As providers of simple finance for UK charities and social enterprises, we do of course receive many applications for finance from organisations who simply aren’t ready for investment. 

But we also believe there are many fantastic organisations with investible ideas who don’t apply. We think that this may often be due to a lack of clarity about what the social investment offer is or concern about the process of raising investment.  And sometimes just a lack of confidence in the idea.

Here are some recommendations for organisations considering their first steps into this world.

1. It’s all about the people

We have learned that whatever the numbers say, people are key to the success of an investment. That’s why we have backed near start-ups and organisations doing interesting things, or entering new geographies for the first time. The ability of the team to demonstrate their skills and successes is as important as a good corporate track record.

And it’s not just the management team – quality governance is a key consideration in our investment decisions. The stronger the better.  We can take more risk if there is a motivated group of experienced people surrounding the management team. 

2. The importance of income generation

Our investment is often used to unlock new revenue streams. An organisation requiring capital to develop a new service that once established will unlock access to a contract is appealing. This is often the case when organisations are considering their ability to deliver a service to a local authority or another type of commissioner. 

3. Financial returns

Social Investors understand the problem. Investees need to be able to demonstrate they can pay back finance, but social investors work in the world of government cuts and understand the pressure of shrinking expenditure on vital services. We are increasingly finding ways to work with investees to share risk as a way of unlocking opportunities for them.

4. Preparing the business case

Where available we recommend that investees submit 3-5 years’ worth of historic financial information and a well thought through business plan and projections - substance over style for the business plan. And investees shouldn’t worry if past performance has been mixed, we know this is only part of the story – we’ll need an explanation, but we’re really looking to understand how the situation will change in the future. Having a good narrative is vital for potential investees. A clear link between how the investment will be used and how it will be repaid is also key.  

5. Projecting the costs 

We recommend that investees are careful when projecting costs. Being overly conservative can undermine interest in the project – but it is also important for them to remember they will need be able to justify and explain the numbers.  Comparing their projections against other organisations doing something similar is a good way to make sure they are striking the right balance. 

We know there are many organisations out there with great ideas that would be ideal for social investment.  We hope these tips will encourage some of them to apply in 2018.

About Social and Sustainable Capital

Over the past decade, the term sustainability has caught on in the boardroom, courtroom and living room.  While the concept has reached the mainstream, opportunities abound for implementation.  Ten trends to watch for and prepare in 2018….

1.  Role of technology – Between smart grids, smart supply chains and smart transport, i.e., electric trucks, trains and cars, reliance on AI will increase.  This can be good or bad, depending on whether programmers KNOW to code for sustainability.  Unfortunately, research shows Silicon Valley is behind the curve.  Other tech centers will step up. 

2.  Cities planning for climate change – Now that the insurance sector acknowledges the risks of climate change, increasingly local governments will prepare themselves.  Coastal cities planning for sea-level rise or any town planning for the disaster du jour – hurricanes, sinkholes, tornadoes, blizzards, fires – must put sustainability plans in place or face uninsurable liability.

3.  Cultural divide – Besides the haves and have nots, expect a divide between those who do and those who don’t: do recycle, don’t eat meat; don’t stave off vampire electrics, do use plastic bags; don’t drive big cars, do carpool.  Reduce/reuse from the Thrift Store or shop new at the Box Store?  Fortunately, retailers will offer more sustainable products to attract both. 

4.  Corporate breakdown of silos – Corporations will increasingly value integrating sustainability across departments, product lines, R&D, manufacturing, infrastructure, everything!  Up and down the supply chain, as imperative for international trade or a method of risk abatement – assimilating sustainability will become essential to ameliorate corporate woes and increase profitability.

5.  Fake news driving real news – With so little trust in media, companies, NGOs and governments will increasingly depend on externally assured self-reporting of their sustainability successes and challenges.  As stakeholders become disillusioned and distrustful, sustainability reporting must prove itself – real metrics, no green or blue washing, with quantifiable goals.  And, all of it must be verified by an outside source. 

6.  Cross-company collaboration – Many of today’s pressing issues are simply too complex to solve alone. An even bigger traction of companies – and competitors –  will partner to advance whole-scale change, like for example Danone and Nestle did to form the NaturALL Bottle Alliance. 

7.  Sector-wide collaboration with consumers – Acknowledging the power of strength in numbers, companies in specific industries will continue to band together to accelerate progress on shared issues. For example, the Food and Beverage industry has aggressively tackled transparency, with major players like Hershey and Panera arming consumers with additional information, not only nutrition but also production (organic, non-GMO), shipping and handling (human rights), and sustainability efforts. 

8. Generation Z influence – Generation Z will hold companies to high standards. Much like their Millennial counterparts, Generation Z is focused on the impact companies have on the world. In a study by i4cp, 93% of Gen Zs said that a company’s impact on society affects their decision to work at or purchase from the company.

9.  Companies aligning initiatives around United Nations SDGs – The Sustainable Development Goals call for action by all UN member states to promote prosperity while protecting the planet. By aligning around the 17 Goals, and their smaller targets, corporations will take on major sustainability initiatives specific to company values. The SDGs are also going to change and enhance the future of Sustainability Reports.

10. More sustainability related jobs – Sustainability related jobs will be created, not only in large companies but also including benefit corporations and green startups.  To get advanced knowledge in this field and earn qualifications, go to www.sustainability-academy.org.

Based on a collective 100-plus years of experience among our leadership and advisors, extrapolating from our annual research, we at CSE know the challenges are surmountable.  With awareness, education and determination – ever forward!

The Centre for Sustainability and Excellence (CSE) specializes in global sustainability consulting, training and research.  CSE has trained over 5,000 professionals, many from the Fortune 500.  CSE’s Sustainability Academy offers affordable, online education in corporate responsibility. Accredited by CMI (Chartered Management Institute), CSE is a GRI-certified training provider.  Upcoming in-person Certified Sustainability (CSR) Practitioner Programs (2018 Advanced Edition) include London, March 1-2;  Atlanta, March 8-9; Toronto, April 26-27; New York, June 7-8, and other dates globally. 

Image source: iStock / WangAnQi

PR agencies spend a lot of time talking about living their values, for themselves and their clients. It is an important thing to do in an industry that gets shaken by scandals like Bell Pottinger every few years, where companies have forgotten that this mantra needs to be practised and not just preached.

It was much simpler in the old days – do as I say, not as I do and use PR to plug the credibility gap that sometimes yawned between the two.

Those days are thankfully well behind us and there is a growing realisation in the business world and the PR sector specifically that we need to constantly push to practice what we preach and be open about the work organisations still need to do when the reality does not match the aspiration.

Living your values as an organisation is important, but to really make a positive impact we need to make sure there is a broad consensus about what those values are and a shared sense of the change we want to make collectively.

There are many ways to approach that. For example, we became one of the founding B Corps in the UK - the movement of businesses focused on driving positive social change. Our B Corp status has helped us to figure out how well we're doing in the ways that really matter – financially, socially and environmentally. It puts the focus on the difference we can make as a business, both through the work we do for our clients and how we operate as a business.

But the B Corps movement, while growing, is still small. There is a bigger game in town that we believe any business, in fact any organisation, that has pretensions to live its values and make a difference needs to be part of - the Global Goals for Sustainable Development.

Given the scale and breadth of many of today's social and environmental challenges, we all need to think and act big and the Global Goals provide the perfect framework for doing that. Every business, whatever its size or circumstance, can use the goals to help articulate the impact it wants to make and, just as importantly, how it will operate as it tries to deliver that impact.

As a business, we have we've picked out three of the Global Goals where we believe we can have the biggest impact:

1. Giving people access to the products, information and services they need to support their health, and the confidence and ability they need to use it to live well
2. Raising awareness of the need to protect and preserve the environment and encouraging responsible, sustainable consumption
3. Building vibrant and resilient communities through access to fairly paid, good work opportunities for all

Those three targets are driving our business strategy, the work we do for our clients and how we run our company for our employees, suppliers and the wider community, in short everything that we do. Whisper it, but we will do better as a business on every meaningful measure as a result of committing to these.

So, if your organisation has committed to living its values and making a positive difference and you are not using the Global Goals to help you do so, then you need to ask a simple question – why not?

A new report from one of the world’s leading sustainability non-profits, Forum for the Future, calls on leaders to better understand the dynamic trends that are shaping the future, in order to create strategies that effectively navigate today’s complex times and unlock new opportunities for sustainability.

Titled Future of Sustainability 2018 – Living in nonlinear times, the crowd-sourced report sheds light on seven “areas of dynamism” that are exerting a profound impact on societies today, from changing retail and consumerism, to regenerative approaches to agriculture and action against plastic pollution.   

Drawing on the key social, economic and environmental shifts happening in these areas, the report highlights the implications, as well as the rich opportunities on offer for business, civil society and government leaders to radically and rapidly reshape current systems of behaviour and practice, for long-lasting, systemic change.

James Goodman, Director of Futures and Projects at Forum for the Future, said: “We live in a world of great political, economic and environmental uncertainty, in which sudden and major changes have become the new normal. We need a better understanding of the trends emerging today that will impact the future, how they are linked, and also how we are part of ongoing processes of change. Only then can leaders make better decisions that ensure that we survive and thrive in the future.”

For each of the seven areas, the report describes “signals of change” – real-life examples of disruption and/or innovation around the world - and considers their implications for the future. These signals act as tangible proof points of change in motion, and demonstrate how leaders and decision makers need to think more systemically in order to understand where different sectors are headed and the opportunities they can harness to help deliver a more sustainable future.

The report considers the reality behind blockchain, assessing how the decentralised database may be able to support sustainable practices beyond the world of cryptocurrency, and exploring ways it might be combined with other technologies to deliver greater impact in the future.

Another focus area highlights how the retail sector is in flux as technological innovations and changing expectations from digital-native consumers are rewriting the way we buy and sell. Retailers need to adapt not only to reduced foot traffic as consumers move online, but also to new trends such as the move from ownership to access, the sharing economy, and the shift from products to experiences. Yet emerging technologies are enabling some far-sighted retailers to reinvent the consumer experience - from Amazon Go’s first contactless, cashierless store in China, to Smarter’s FridgeCam which stocks up users’ fridges based on what’s inside. Critically, these new approaches to retail can unlock opportunities for businesses to make consumption more beneficial for both environment and society.

In the food system, conventional agricultural models are putting increasing pressure on natural systems with significant implications for feeding growing populations and for keeping climate change in check. In response, we are seeing signs of regenerative agriculture - innovative, restorative approaches that give back more to the environment than is taken out. In addition, the report explores how new systems of automation and data collection can support these approaches. These new developments present huge opportunities for producers, businesses and governments alike to develop a food and farming system that is productive and sustainable in the long term. 

David Croft, Global Sustainable Development Director for Diageo, said: “Diageo works to support farming and sustain the environment across our value chain. We have found that collaboration is critical and the key to success. 

“Regenerative agriculture needs both environmental and socio-economic interventions given the complexity of the issues involved. This is challenging to achieve at scale, but I see an increasingly shared vision and agenda that closely aligns with this report and its focus areas. We hope this report will be a source of confidence and for shared action going forward.”

The Future of Sustainability 2018 report was written by Forum for the Future’s team of futures experts, led by James Goodman. It draws on contributions from multiple sources, including a year’s worth of signals of change curated and analysed by the Futures Centre, extensive research into the future of a range of sectors and issues, and insights from the non-profit’s ongoing work with collaborative partners to drive system change. Read the report here.

For more information about Forum for the Future’s work in future trends and strategy, please contact James Goodman or visit the Futures Centre.

When we’re talking about an important subject, and need to persuade and influence, being memorable and standing out from the crowd of speakers is vital. How we use our words in a presentation has a massive impact on how memorable our presentation is, and how memorable we are for our audience. Luckily we have a wide range of verbal tools available that we will help our audience remember what is said and the speaker remember what to say.

Let’s look at some of the tools available to us.

Engaging the senses is powerful

The visual

The more visual imagery contained in your speech or presentation, the more memorable it becomes. Take the following example: ‘‘A fox with glasses told his submarine to dive beneath the surface’’.  You can increase the impact by adding extra detail – perhaps the glasses are blue. Such use of vivid imagery helps to create more powerful memories for your audience.

The Auditory

Sound can act both as a tool in its own right but also as a reinforcement. When you describe a ‘crashing cymbal’ or a ‘crack of thunder’ the audience is automatically given an image as well as adding a sense of drama to your speech.

Symbolism related to sound can trigger powerful associations for audiences.  Mentioning the skirl of the bagpipes at a Remembrance Day parade may bring to mind the ‘devils in skirts’, the famous nickname given to the Highland regiments due to their ferocious fighting during WW1 by the German soldiers.

Taste and smell

Think of any restaurant menu and the highly descriptive choice of words like crafted, fire-roasted or hand-dived, all of which are designed to activate your taste buds, enticing you to buy.  It is no different to persuading your audience to believe in what you’re saying.

Invoking aromas can produce impressive reactions; take for example wine descriptions on a menu, ‘Peppery’, ‘Fruity’ or a ‘hint of leather’. These spark mental associations in the same way as perfumes being described as floral, musky or woody. Your ability to link language to senses invokes strong memories.

Touch

If you run your fingers over an object, what feeling do you experience? Can what you’re describing be thought of as smooth, rough or perhaps sharp?

Word Hacks

The most potent weapon for a speaker wishing to deliver a notable speech are ‘word hacks’; seemingly simple word magic tricks that can be used to dazzle an audience.

Here’s an example - ‘Mocha is not my cup of tea’ is mildly amusing wordplay but when you learn it refers to a horse named Mocha and a nervous rider is making the remark, the meaning resonates further with the listener.

Here are five more top tips

In ancient Greece and Rome people placed great emphasis on oratory, developing a raft of techniques which are still in use today.

Use lists of three

An effective, simple and easily remembered tip is to employ the Tricolon; epitomised most famously by Julius Caesar. Veni. Vidi.Vici.  I came. I saw.  I conquered.  

Use Mirror imaging

Then we move on to Chiasmus, a mirroring imaging of word order. There’s President John F Kennedy, who at his inauguration said, ‘My fellow Americans, ask not what your country can do for you but what you can do for your country’.  One of the most memorable statements of all time.

Use Action Statements

‘Drain the swamp’, ‘Build the wall’ are all three-word combinations which rolls off the tongue easily and delivers a powerful message to the listener.  They are short, punchy action statements. Donald Trump used these to great effect.

Use Repetition

A highly effective communicator like Barack Obama also employed rhetorical skills, his weapon of choice being Epistrophe – ending successive points with the same phrase – who could forget the simple yet strident statement ‘Yes we can’?

Access Alliteration

Using the same sound or letter at the start of a word - makes your speech both memorable and easy to memorise though you have to be careful not to give yourself something that is easy to read but difficult to say.

Here is an example I noticed an article in The Economist. It was about eating rabbit and has two alliterations in quick succession. The first was ‘Lapping up lapin’ which is reasonably simple to remember and say. The second was:   ‘But the hutch-based solution that Mr Maduro has hatched has run into a hitch’. The second example would probably need practice and verbal dexterity from a confident speaker to deliver the full comic effect.

It’s good to realise that audience members want to remember what you said. They also want to remember you.  Make this easy for them by using the verbal tips and rhetorical devices described here.  This is not just for politicians. It is for everyone who has an important message that they want to get across and have remembered.  As you use these tips you’ll find they become second nature and powerful phrases will occur to you as you create your presentations.    

Photo: Toastmasters International

Eddie Darroch is from Toastmasters International, a non-profit educational organisation that teaches public speaking and leadership skills through a worldwide network of meeting locations. Headquartered in Rancho Santa Margarita, California, the organisation’s membership exceeds 352,000 in more than 16,400 clubs in 141 countries. Since 1924, Toastmasters International has helped people of all backgrounds become more confident in front of an audience. There are more than 300 clubs in the UK and Ireland with over 7,500 members. To find your local club: www.toastmasters.org  Follow @Toastmasters on Twitter.

Environment and sustainability professionals still outperform the UK average in job satisfaction and remain optimistic about the challenges ahead.

This confident note is struck by the annual report on members’ conditions and attitudes by IEMA, the UK-based international professional body for environment and sustainability specialists. 

Almost seven in ten told the survey they were satisfied or highly satisfied, and the one third of respondents moving into the sector from other jobs are even happier, registering a 78 per cent satisfaction rating. They find their work “challenging”, “rewarding” and “full of opportunity”.

As a comparison, the Chartered Institute of Personnel and Development reports a 64 per cent rating and the recruitment group CV-Library 60 per cent.

Rising pay, stable employment and career mobility contribute to the profession’s satisfaction rate.

Median salaries, for example, rose last year by 2.6 per cent from £39,000 to £40,000 ($54,000 to $55,500, €43,700 to €44,800), well above the typical UK level of £28,758. The gender pay gap narrowed slightly, though at 14.1 per cent above the national average. There are few women in senior roles but in the 40-45 and 50-54 groups they are earning more than their male equivalents.

Tim Balcon, the IEMA chief executive, calls the sector attractive to job-seekers: “It’s fantastic that, yet again, we are able to report that this is a profession that exceeds the national averages for job satisfaction, employability and pay.

“Anyone looking for a job that recognizes and rewards dedication and the ability to make positive change should look no further.”

The survey reports robust reaction to today’s Brexit-related political uncertainty. Of the respondents, 56 per cent are optimistic about dealing with the challenges, up by 13 per cent in a year. The under-30s are slightly more sceptical, and many respondents wanted stronger political and corporate leadership.

Balcon concludes: “This profession has a huge responsibility on its shoulders, yet I am not surprised that so many practitioners are undeterred. This is a group of people who dedicate their entire careers to tackling challenges and delivering against global goals for a sustainable future.

“The issues we have to overcome are not limited to environmental challenges.

“I am pleased to see the pay gap between men and women is closing, but we have far to go.

“I want to call on all employers to address how they support the career paths of gifted female workers as well as those from diverse backgrounds. The levels of talent, knowledge, skill and ambition in the IEMA membership, all evidenced in the … report, is beyond impressive and employers risk missing out if they don’t take the right steps now.”        

Image credit: Pixabay / andibreit

With chaos and tumult defining the news across the board, it’s inevitable that major changes are roiling the socially responsible investment industry, with major implications for investors and public companies alike.

In the midst of this disruption, there are some definite clues to the future in Sustainalytics’ fourth annual “10 for . . .” report, but its findings require thoughtful reading to properly assess the considerable insights.

In  “10 for 2018,” the independent corporate governance research firm issues a number of warnings along with its usual “upside” conclusions. While the report underlines that risk can also create opportunity, the threats it identifies in the coming year are significant ones. The bottom line is, that while major advances are being made in several areas of corporate practices and strategies regarding environmental, social, and governance (ESG) issues, investors will need to pay close attention to rapidly changing developments to ensure profits from this progress.

On the upside, Sustainalytics finds that ESG-driven investing will continue to increase in 2018. Global responsible investing now totals $23 trillion, a rise of 25 percent since 2014, according to the Global Sustainable Investment Alliance. To add to this inflow of “sustainable” capital, the global green bond market is estimated to reach $250-300 billion in 2018, up from $155 billion in 2017.

The rapid growth and large sums are a result of more widespread adoption of integrating ESG factors into decision-making, explains Sustainalytics CEO Michael Jantzi. “Investors are addressing the risks posed by climate change, pressing to make the workplace more diverse throughout the ranks, and encouraging transparency and innovation in the way business is performed . . .. Investors increasingly recognize that ESG considerations are part of their fiduciary duty as long-term stewards of capital.”

Jantzi cautions that this growth is accompanied by “profound” changes taking place in the asset management world. They include “the ongoing shift from active to passive management, the move from fundamental to data-driven strategies, and the increasing use of machine learning and artificial intelligence.” These changes will place “new demands on ESG research and data, and raise expectation for production innovation.”

As if these changes in traditional models and practices were not enough disruption, “10 for 2018” outlines 10 specific ESG risks for 10 sectors, from mining and chemicals to real estate and apparel. They include water management at a time of increasing scarcity, the ongoing challenge of climate change, new regulatory and legal constraints, and increasing demands from stakeholders for better governance.

As in previous “10 for . . .” reports, 10 companies are analyzed and measured in case studies for their exposure to risk. The report also looks back at the progress (or lack of it) made by the 10 companies examined in the 2017 report.

This year’s report displays a sobering shift in focus, from the exercises’ previous emphasis on potential profit-making innovations to an in-depth examination of ESG risks to shareholder value. But it is also a milestone in the maturity of the responsible investment market: a reminder that major progress does not come free of equally significant challenges.

Photo: Sustainalytics

This article originally appeared in TriplePundit.