Impact Brief: The Calamity of the Moment
Well, no one could have forecast the calamity of Silicon Valley Bank in January - or could they have? I am certain everyone reading this newsletter has heard of that catastrophic ending for Silicon Valley Bank (and also Signature Bank). While it seems that at this stage all depositors with the heavily utilized venture bank will regain access to their funding, the fallout could have been devastating for the tech sector but for another sector in its hot rise - the climate sector. In fact, the bank itself had deep relationships with many climate-focused startups and was often considered the ‘climate bank’ and even scored well on ESG reports. And while the immediate threat may be mitigated - many ask the question - how will this shake out in the future?
The long-term effects of the SVB fallout are still to be determined, but perception to risk, regulation and lack of good governance are still key factors that are bound to change in the coming weeks and months. There are many perspectives for the reasons behind the fall of SVB, none more ridiculous than the Wall Street Journal blaming it on board diversity; if they only looked at the diversity of their executive team they may have seen some red flags. But let's be honest just because you have an ESG report does not mean you are doing everything well or that you have an overarching social purpose beyond profit, or that you have a very sound sustainability strategy. You can’t have one without the other. A great analysis can be found here as to the role of Governance in the SVB Calamity.
New Word Alert
Greenhushing in Fast Company
In the lexicon of sustainability, new terms are popping up regularly. Some to bring new language to our world and others a reaction to greenwashing and anti-ESG rhetoric. The latest word we have been hearing is ‘greenhushing’. What does it mean?
"Green hushing refers to companies purposely keeping quiet about their sustainability goals, even if they are well-intentioned or plausible, for fear of being labelled greenwashers."
The Wave of the Chief Sustainability Officer
With all the mayhem its no wonder that we do need climate leadership at all levels of organizations. The nexus of timing and need has lead to the wave of Chief Sustainability Officer hires and an acceleration of this over the last two years. The rise of the CSO has not been an accident (read more in this report by PWC) and it is a much welcome trend. But as the #ClimateofBusiness newsletter by Plan A outlines the key responsibilities of the role may be a bit much for one person to achieve - its important to remember the list below needs to be a CSO but achieved by a team and a company-wide commitment to impact.
The main areas a CSO is responsible for include :
Guaranteeing Regulatory Compliance
ESG Monitoring & Reporting
Managing A Portfolio Of Sustainability Projects
Managing Stakeholder Relationships
Enhancing Organisational Abilities
Leading With A Culture Of Change
Seeking & Experimenting With New Technologies
Ensuring Sustainability Is A Central Focus Within Business Processes & Decision Making
In the News
The tension between growth and making an impact - Patagonia grapples with its path forward (The Guardian)
Consumers care about sustainability, and they are showing it with their wallets (McKinsey)
To thrive in the future, climate leadership desperately wanted (and needed) (PWC)
The First Rule of ESG don't talk about ESG (GreenBiz), and republicans are still furious about ESG (NYT)
Climate solutions Cross Chasm as Customers Ready for Change (Sustainable Brands)
Climate Change and the impact it has on women is disproportionate, a framework for investors to use (Morgan Stanley)
How the SVB collapse will affect the non-profit sector (Medium)
Microsoft Signs its first Ocean-Based Carbon removal Agreement (ESG Today)
Monumental new deal for the open seas with the new UN High Seas Treaty (Nature)
No one said this would be easy - EU prepares for a financial system-wide climate stress test (perhaps the US needs to watch) (ESG Today)
Everyone should be concerned about the ice (The Guardian)
How Banks can lead the way for decarbonization (Plan A)
EVENTS on our Radar
While everyone revels in the Austin sun for the 2023 SXSW Innovation Conference and Festival, we have our eye on some events coming down the line later this year.
Accelerating the Circular Economy - Jun 5 - 7, 2023 Seattle Washington
ESG Symposium - May 30-13 Virtual
Sustainable Brands SB'23 - October 16-19 San Diego, California
2023 UN Climate Change Conference - November 28-December 12 Abu Dhabi, Dubai
8th annual Sustainability Week - March 29-31, London, England
Responsible Business Europe 2023 - June 6-7, London, England
SOCAP 2023 - October 23-25, San Francisco, California
9th International Conference on CSR, Sustainability, Ethics and Governance “Towards an ESG World” - June 14-16, Santander, Spain
