logo
book Subscribe to our Magazine
    • Magazine
    • Membership
    • Donate
  • Racial Justice
  • Economic Justice
  • Climate Justice
  • Health Justice
  • Leadership
    • Grassroots Fundraising Journal
  • CONTENT TYPES
  • Podcasts
    • Tiny Spark
    • Women of Color in Power
  • Webinars
    • Free Webinars
    • Premium On-Demand Webinars
  • Membership

Sustainability Concerns Drive Demand for Business Climate-Change Strategies

Steve Dubb
December 22, 2017
Share
Tweet
Share
Email
Print
By original: Johann Dréo (talk · contribs)translation: Pro bug catcher (talk · contribs) [GFDL, CC-BY-SA-3.0, CC BY-SA 2.0 or CC BY-SA 2.0 fr], via Wikimedia Commons

December 17, 2017; Morningstar ETF Insights

According to Jon Hale, head of sustainability research for Morningstar, a leading investment advisory company, environmental investing is on the upswing.

“Sustainability may resemble an investment theme,” Hale writes, “but it’s broader than that. It’s an approach to decision-making, which in the investment context means a long-term focus that’s inclusive of stakeholders, that recognizes that the transition to a low-carbon economy will produce winners and losers, and that investors can have an impact on creating a low-carbon global economy that works for more people.”

Hale notes that a recent Callan report found “more foundations in the US, especially large ones, and public pension funds began incorporating ESG [environmental, social and governance factors] into their investment processes this year.” In particular, the Callan report found that 37 percent of survey respondents do so, up from 22 percent in 2013, the year the survey was first conducted. Hale also points out that a Brown Brothers Harriman/ETF.com survey of “sophisticated [exchange-traded fund, or ETF] investors in the US” found that interest in ESG-oriented funds climbed to 51 percent from 37 percent the year before.

Most importantly, Hale emphasizes that “efforts to get companies to disclose the risks they face from climate change gathered force in 2017,” a theme also covered by NPQ’s Bhakti Mirchandani last month. In addition to the work of the Task Force on Climate-Related Financial Disclosure, shareholder action has even been able to occasionally force direct action at the company level. Hale notes that both Exxon Mobil and Occidental Petroleum faced “almost unheard-of majority shareholder votes on climate-risk disclosure resolutions.”

Sign up for our free newsletter

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

Hale also calls attention to the fact that on the second anniversary of the signing of the Paris Agreement, a group of global investors launched an initiative called Climate Action 100+ “to drive action on climate change among 100 companies that are the world’s largest greenhouse gas emitters.” Hale adds that this month Exxon Mobil wrote in an SEC filing that it would abide by the shareholder resolution and release information on “energy demand sensitivities, implications of two degree Celsius scenarios, and positioning for a lower-carbon future.”

As Hale points out, these changes could measurably accelerate carbon emission reductions.

Assuming investors are successful in spurring more companies to take action on climate disclosure, as they’ve now been with Exxon, their efforts could have a major impact not only for all investors but for companies themselves by enhancing understanding of climate risks. And by spurring companies to better understand their climate risks, these efforts can lead to more firms taking action to reduce their carbon footprints, thereby achieving the broader impact of reducing greenhouse gas emissions in line with the Paris Agreement.

—Steve Dubb

Share
Tweet
Share
Email
Print
ABOUT THE AUTHOR
Steve Dubb

Steve Dubb is a senior editor at NPQ, where he directs NPQ’s economic justice program, including NPQ’s Economy Remix column. Steve has worked with cooperatives and nonprofits for over two decades, including twelve years at The Democracy Collaborative and three years as executive director of NASCO (North American Students of Cooperation). In his work, Steve has authored, co-authored and edited numerous reports; participated in and facilitated learning cohorts; designed community building strategies; and helped build the field of community wealth building. Steve is the lead author of Building Wealth: The Asset-Based Approach to Solving Social and Economic Problems (Aspen 2005) and coauthor (with Rita Hodges) of The Road Half Traveled: University Engagement at a Crossroads, published by MSU Press in 2012. In 2016, Steve curated and authored Conversations on Community Wealth Building, a collection of interviews of community builders that Steve had conducted over the previous decade.

More about: strategic planningclimate changeenvironmental sustainabilityManagement and LeadershipNonprofit News

Become a member

Support independent journalism and knowledge creation for civil society. Become a member of Nonprofit Quarterly.

Members receive unlimited access to our archived and upcoming digital content. NPQ is the leading journal in the nonprofit sector written by social change experts. Gain access to our exclusive library of online courses led by thought leaders and educators providing contextualized information to help nonprofit practitioners make sense of changing conditions and improve infra-structure in their organizations.

Join Today
logo logo logo logo logo
See comments

NPQ_Spring_2022

You might also like
Salvadoran Foreign Agent Law Threatens Human Rights Movements
Devon Kearney
Healing-Centered Leadership: A Path to Transformation
Shawn A. Ginwright
Into the Fire: Lessons from Movement Conflicts
Ingrid Benedict, Weyam Ghadbian and Jovida Ross
How Nonprofits Can Truly Advance Change
Hildy Gottlieb
The Road to Social Impact: Leveraging Community Power and Institutional Influence
Katherine R. Cooper and Michelle Shumate
2021 by the Numbers
Nonprofit Quarterly

Upcoming Webinars

Group Created with Sketch.
June 9th, 2 pm ET

Remaking the Economy

Wage Justice, Now!

Register
You might also like
Salvadoran Foreign Agent Law Threatens Human Rights...
Devon Kearney
Healing-Centered Leadership: A Path to Transformation
Shawn A. Ginwright
Into the Fire: Lessons from Movement Conflicts
Ingrid Benedict, Weyam Ghadbian and Jovida Ross
WOMEN OF COLOR IN POWER
Women of Color in Power

Listen wherever you get your podcasts.

Subscribe
Rep. Ayanna Pressley and Authentic Leadership
Reclaiming Interrupted Lineages

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

Independent & in your mailbox.

Subscribe today and get a full year of NPQ for just $59.

subscribe
  • About
  • Contact
  • Submissions
  • Advertisers
  • Newsletters
  • Copyright

Subscribe to View Webinars

We are using cookies to give you the best experience on our website.

 

Non Profit News | Nonprofit Quarterly
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.