This discussion addresses what is and is not effective in how Environmental, Social, and Governance (ESG) investing is used to make long-lasting improvements to natural and social systems. The Croatan Conversations addresses several critical questions surrounding ESG finance and its impact on natural and social systems.
Participants in the Panel
- Bill Harrington,
- Daniel Cash,
- Gillian Marcelle, and
- Dr Chantal Naidoo
Key points from the discussion:
- Durable Improvements to Natural and Social Systems:
- Responsibility of Implementation and Validation:
- Role of Third-Party Assessments:
- Standardization of ESG Ratings:
- Public vs. Private Sector Responsibility:
Dr. Chantal Naidoo emphasizes that the public and private sectors have different roles and responsibilities in achieving sustainable development. This shows the need to understand the evolving dynamics between these sectors.
- Response to Crisis and Comfort Zones:
Dr. Chantal Naidoo points out that the response to sustainability challenges may be hindered by a comfort zone where financial innovation and standards are designed without questioning their effectiveness. This raises the importance of reassessing the tools and approaches used.
- Social Determinants of Crisis:
Gillian Marcelle discusses how the perception and response to crises are influenced by power dynamics, including financial wealth. This highlights the social determinants of crisis management and sustainability efforts.
- Corporate Interests vs. Global Population:
Daniel Cash addresses the challenge of aligning climate finance with the best interests of the global population rather than corporate interests. He suggests that pandering to the corporate world may not yield the desired results in addressing issues like biodiversity loss and climate change.
Overall, the discussion showcases the complexity of ESG finance and its impact on sustainability. It highlights the need for critical evaluation, rethinking approaches, and considering the evolving roles of various stakeholders in achieving lasting improvements to natural and social systems.
