THE GREENING OF BUSINESSES
If we are to address the climate crisis, start to reverse decades of industrially inflicted damage and make our collective way to the UN net zero emissions target, we will need common will and support from governments, regulators, businesses and individuals.
The business world, in particular, has an important role to play. According to PR consultancy Edelman’s Trust Barometer Spring Update 2021, the business world outperformed government, media and the not-for-profit sector in addressing health and public safety over the course of the pandemic.
And there are other areas where the commercial world seems to be winning over hearts and minds. It surpasses other institutions significantly when it comes to safeguarding the information it holds or communicates, and also when it comes to addressing inequality. Within the Barometer’s findings, nearly eight in 10 employees expect their companies to act on societal issues – including climate change. That’s a singular development and one that must be viewed as an opportunity.
The Intergovernmental Panel on Climate Change’s latest report – the Sixth Assessment Report – clearly conveys that we are on a precipice. Businesses are not alone in holding responsibility, but their collective response to COVID-19 appears to have given businesses new backing – even
a mandate to act now on greening their operations and renewing that sense of connection with their organisational and social purpose.
As financial markets work to increase visibility on meaningful environmental, social and governance (ESG) metrics, rating agencies have a pivotal position. In this issue of The Treasurer, you can learn about the rationale behind climate and socially linked scenario analysis at the three main players (see page 22).
On page 18, Michelle Perry looks at two companies that have committed to net zero: Drax Group, which began its decarbonisation a decade ago, and Tesco, which has committed to sustainable finance across a range of vehicles including supply chain finance. Treasurers are doing their bit in making companies greener and linking wider ESG initiatives to funding.
We’ve also turned – as we do each year – to our Future Leaders in Treasury group. On page 14, four members tell us about how they and their organisations have continued to evolve their operations and their view of risk. At a time when the social purpose of businesses is strongly in focus, they discuss how their leaders engaged with them, and about wellbeing and stakeholder engagement.
The past year seems to have created a business world and leadership cohort that is more and more willing to listen and engage. It is incumbent on all of us to continually challenge it to do so.
I hope you enjoy this issue and continue to stay safe.
Liz Loxton, Editor
thetreasurer@thinkpublishing.co.uk
Follow us on Twitter @thetreasurermag
ALEXANDRA LEWIS, National Grid’s group treasurer and director of pensions, has been with the utility for 24 years, working in key treasury, HR and upper management roles. Her commentary on how treasurers can incorporate environmental factors in their work and align with their organisations’ ESG goals can be found on page 8
PARAG KHANNA, managing partner at advisory firm FutureMap, is a strategic adviser and commentator, who has the ear of governments and global corporates. A speaker and bestselling author, he has written extensively on the future world order. His feature on the rise of ASEAN countries
appears on page 30
GOTTFRIED LEIBBRANDT is a former CEO of cross-border payments network SWIFT. A fixation with payments led him and SWIFT’s former head of corporate affairs, Natasha de Terán, to write The Pay Off, an exploration of how global payments affect us all. Their article can be found on page 36
