Post by account_disabled on Feb 22, 2024 6:47:31 GMT
The CEOs of Danone, L'Oréal and Philips are among the signatories of a new open letter calling for the creation of an economic system that "puts purpose first, so our planet and society can prosper" , through COVID-19 recovery efforts. Sarah George at edie said the letter is openly addressed to all public and private sector leaders, and provides a six-point framework designed by the Leaders of Purpose (LOP) platform. LOP's claims would result in "building back better" after the initial economic shocks of the pandemic. Governments should “recognize the purpose-first sector,” the letter says, designing recovery packages that prioritize companies with a strong track record of improving their social and environmental footprints, or that provide goods or services aimed at fostering sustainable development. Recognition can take many forms, including: Specific policy incentives for purpose-driven companies. Specific policy barriers for high-carbon companies. Financing. Strengthening capacity. Other organizations, including academics, philanthropists, and investors, can help businesses and policymakers co-create these incentives and policies. Recognizing the critical role that finance will play in the implementation of key frameworks such as the Sustainable Development Goals (SDGs) and the Paris Agreement, the letter recommends that new incentives be developed to help the financial sector innovate its products, valuation models as well as risk assessment and qualification processes for them.
Consequently, new standards for measuring and disclosing value should emerge. Since COVID-19 was first declared a pandemic in March, a number of banks and investors have strengthened their sustainability goals and requirements, amid a rapid rise in interest in ESG. Also included in the letter are calls for a “just” recovery, in which developing nations are not left behind and in which the initial costs Bulgaria Mobile Number List and long-term benefits of creating a sustainable future are shared equitably. between socioeconomic groups; and for fees to be charged to current systems of education, training and collaboration, in line with the shift towards a “purpose-driven” economy. The letter's final call to action is for governments and businesses to implement processes and develop cultures that support the transition after the initial COVID-19 recovery period. Both companies that already have a deep-rooted purpose and those that want to transform must be supported in the long term, he concludes. A quote from UN Secretary General Antonio Gutteres is included in the letter: Everything we do during and after this crisis must focus on building more equitable, inclusive and sustainable economies and societies that are more resilient in the face of pandemics, climate change and the many other global challenges we face.
The CEOs of Mastercard, Mahindra, Interface, Danone, DSM, Philips, L'Oréal, Natura & Co, Beiersdorf, Omnicom-Ketchum, ICC, Equity Bank, Fortune Media and Space Voyager Holdings have signed the letter. These companies collectively employ more than half a million people and have annual revenues of more than $100 billion. Support has also been offered by former Unilever boss Paul Polman. Systems-level thinking In related news, asset manager Impax has published research assessing the consequences of the pandemic on the transition to a more sustainable economy, focusing on finances. The report highlights how the pandemic has exposed supply chain vulnerabilities and increased business awareness of systems-level risks, ultimately spurring action. stronger protection of the climate, nature and workers. It also exposes a trend for companies to strengthen their sustainability goals and change their business models in anticipation of changes in legislation, as most companies believe that the governments covering their operations will try to create a "green" recovery package. » or, at the very least, change supports for high-carbon industries that were already struggling. While noting that many companies are likely to reduce their investments at this time, particular investment opportunities are highlighted in the fields of automation and digitalization, as well as in the obvious field: health, safety and well-being. Investors are also increasing their measurement and disclosure requirements for climate-related and nature-related risks. The World Economic Forum has previously concluded that $44 trillion – more than half of global GDP – is exposed to the risks of nature loss and global warming. The COVID-19 crisis has revealed complex and interconnected consequences stemming from an unsustainable economy. Investors, policymakers, businesses and consumers have an opportunity to avoid the same missteps when the next high-impact crisis of this magnitude hits.