15. Sustainability - from origins to opportunities

05/16/24 • 43 min

Advancing Racial Equity 4.0 with Dr Shereen Daniels

In 2023, Stuart co-authored ‘The Adventure of Sustainable Performance: Beyond ESG Compliance to Leadership in the New Era’, exploring the role of leaders in shaping a new era for business and in driving performance as the world transitions to a net zero future. Stuart has led Anthesis through two rounds of private equity ownership, the latest of which was with Carlyle and Tikehau in August 2023.

In this episode, Stuart and I delve into the evolving landscape of sustainability. We begin by tracing the origins of sustainability, rooted in environmentalism, and observe its evolution into a comprehensive framework that integrates social and governance considerations. Other discussion points include:

The pivotal role of regulations such as the Corporate Sustainability Reporting Directive in driving corporate accountability and promoting sustainable business practices.
How organisations are navigating the shifting paradigm of ESG being treated as a of a core value rather than mere a compliance requirement.
The significance of stakeholder engagement and transparent communication in fostering trust and credibility in sustainability efforts.
The concept of stakeholder capitalism and its implications for businesses worldwide.
The need for organisations to adopt a long-term perspective that prioritises environmental and social impact alongside financial returns.

Ultimately, we both advocate for organisations to integrate sustainability into their core business strategies as an opportunity to operate in fairer ways and build their 'resilience' muscles.

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The pivotal role of regulations such as the Corporate Sustainability Reporting Directive in driving corporate accountability and promoting sustainable business practices.
How organisations are navigating the shifting paradigm of ESG being treated as a of a core value rather than mere a compliance requirement.
The significance of stakeholder engagement and transparent communication in fostering trust and credibility in sustainability efforts.
The concept of stakeholder capitalism and its implications for businesses worldwide.
The need for organisations to adopt a long-term perspective that prioritises environmental and social impact alongside financial returns.

Ultimately, we both advocate for organisations to integrate sustainability into their core business strategies as an opportunity to operate in fairer ways and build their 'resilience' muscles.

Previous Episode

14. Spotlighting the “S” in ESG

For more than 15 years, Terry Thornton has been building and launching programs in ESG (Environmental, Social, and Governance) and sustainability, reaching more than 15,000 professionals worldwide.

In this episode we explore the multifaceted landscape of sustainability and ESG (Environmental, Social, and Governance) practices. They delve into key topics such as:

How racial equity connects with sustainability using the HR rewired Racial Equity Assurance Index as an example
The implications of the Corporate Sustainability Reporting Directive
Navigating stakeholder relationships
The complexities of ESG ratings and benchmarking
Importance of aligning business goals with societal and environmental objectives and integrating sustainability into core business strategies for long-term value creation; and
Emerging trends in sustainable finance and evolving regulatory landscape

Terry also shares valuable strategies for prioritising stakeholder engagement and discusses the evolving role of corporations in driving sustainable practices.

Next Episode

16. Racial Equity: An Issue of Risk Rather Than A Matter of Conscience with Tejal Patel

Tejal joined the SOC Investment Group in 2016 as Corporate Governance Director, where she focused on shareholder advocacy issues including the opioids crisis and racial equity audits.

In her current role, she has worked with investor coalitions to develop strategies for issuer engagements, shareholder proposals, director accountability, and asset manager outreach. She currently serves as a director and the Labor Constituency Co-Chair for the Council of Institutional Investors (CII) and previously served on the U.S. Asset Owners Advisory Council from 2019-2021. She holds a J.D. from the University of Connecticut School of Law and a MSc. from the London School of Economics.

In this week's episode, we explore the delicate balance between setting meaningful goals and the resistance encountered when calling for a deeper, more substantial commitment to racial equity and implementing preventative measures.

We also talk about:

Corporate accountability and what it looks like when you have an outsider influencing internal accountability and disclosures

Translating of social issues into business risk

The three types of resistance faced by financial institutions who are required to undergo a racial equity audit

Pitfalls of diversity and inclusion (in the way forced or advocated by the companies themselves)

The cost-benefit analysis of conducting racial equity audits versus facing fines for discriminatory practices. The numbers for the latter will astound you!