Joining S&P Global Sustainable Finance Scientific Council

Published April 2021

Bruno Roche, EoM Founder & Executive Director, has joined the S&P Global Sustainable Finance Scientific Council, which fosters an exchange of ideas between diverse stakeholders to help the global capital markets transition toward sustainability.

The Council is comprised of leading experts from academia, sustainability and finance, as well as major corporates and investors. It has recently published two white papers, which have been outlined below.

Natural Capital and Biodiversity: Reinforcing Nature as an Asset

Climate change and biodiversity loss are interlinked, but solutions to reduce greenhouse gas emissions are unlikely to benefit biodiversity in the same way. Instead, biodiversity needs to be given equal consideration in any nature-based climate solution offering. The biodiversity crisis is a still-nascent ESG consideration for investors but it is climbing up the agenda.

Governments and companies are increasingly viewing the incorporation of natural capital into assessments of wealth and performance as fundamental to addressing biodiversity loss. Targeted corporate and government actions to reduce deforestation linked to soy, beef, and palm oil will form a key part of the response, as will supporting smallholder farmers and indigenous communities to protect nature.

Stakeholder Capitalism: Aligning Value Creation With Protection Of Values

Companies are increasingly adopting stakeholder capitalism, focusing on long-term value creation for customers, employees, society, and the environment rather than just short-term value for shareholders.

How can a company manage its relationships with its workforce, the societies in which it operates, and the political environment? This is the central question behind the “S” in ESG investing — the social aspect of sustainable investing. Social factors include a company’s strengths and weaknesses in dealing with social trends, labor, and politics. A focus on these topics can increase profits and corporate responsibility.

The COVID-19 pandemic is sharpening the focus on stakeholder management: substantial government support to corporations has raised expectations of corporate responsibility to society.