ESG investment claims to leverage financial markets in service of society and to reduce company risk. However, considerable doubts have been expressed about how effective ESG indices and investment actually are in driving meaningful changes. How can investors make informed investment choices to further their lofty goals? Data and reporting frameworks are the mechanisms to link ESG action to impact. Addressing inaccuracies and greenwashing in data and reporting can deliver the substantial potential value to financial risk and social value of ESG investment.
ESG, Sustainability, Environmental Responsibility–especially as relates to supply chains
This article series looks at the potential opportunities of ESG investment – both for profitability/shareholder value and the social good. Environmental, social, and governance activities and investments have grown exponentially in recent decades.
Generous government subsidies are being provided to kick-start and incentivize the truly enormous investments required to create the scale of green hydrogen infrastructure required to tackle climate change. Over a trillion dollars of investment, between now and 2050, will be required to decarbonize the shipping sector alone. More will be required to decarbonize steel, cement, and other hard-to-abate sectors.
Supply chain leaders are in a position to lobby for or influence public policies. What policy is in their best interest when dealing with ‘tragedy of the commons’ issues, such as pollution or resource depletion? Is it better to maintain business as usual/laissez-faire, support regulation, or advocate for market-based solutions? Here we explore the tradeoffs.
Carbon-Offset LNG provides a transition fuel to help the world meet carbon emissions reduction goals, especially in the near-term. Africa has a combination of substantial natural gas reserves and opportunities for legitimate large-scale carbon-offset projects, such as massive afforestation efforts across the entire Sahel.
We examine strategies and techniques for making near-term reductions to carbon emissions from transportation, such as improving driving behavior and vehicle performance, minimizing and optimizing returns, increasing first-attempt delivery rates, consolidation and mix-mode strategies, integrating private fleet with purchased transportation, and forecast accuracy and inventory optimization for hyperlocal distribution.
We explore various strategies for obtaining supply chain resilience, including mapping and monitoring the multi-tier supply chain, the use of supply chain finance, and building adaptability into physical infrastructure, systems, processes, and people.
We explain specific advanced tools and practices for dealing with demand-supply uncertainty, including probable forecasting, capacity and consumption commitment contracts, real options as risk mitigation strategies, and hedging strategies.
The past two years have brought nearly uninterrupted volatility, disruption, and uncertainty, which we expect to continue for the foreseeable future. How individuals and companies deal with this ongoing unpredictability will determine their mental, physical, and financial health in 2022 and beyond. Here we provide a framework for companies to thrive in this new age of uncertainty.
Millennials are seeking jobs with meaning and purpose. They are more concerned about social and environmental issues. Companies that are strongly committed to sustainable and responsible supply chains have an advantage in attracting and retaining younger supply chain professionals.
Geospatial data and intelligence often plays a critical role in achieving responsible supply chain stewardship, such as sustainable sourcing, fair trade, sustainable forestry, avoiding conflict minerals, and so forth.