Sustainability In Business Is More An Opportunity Than A Threat
Author: Joseph Holt
CFOs and other business leaders might see the coming changes as a threat. Blackrock, with nearly $7 trillion in assets under management, has promised to exit investments that pose a high sustainability risk, and only time will tell what investments that will ultimately include. Fink also warned that failing to manage climate-related risks and other harmful actions “will catch up with a company and destroy shareholder value.” He added that companies that are insufficiently responsive to stakeholder and sustainability concerns will face increased skepticism and higher capital costs. A recent global survey of more than 3,700 students from 29 top business schools found that the respondents were “ increasingly sorting companies into top and bottom environmental performers with associated consequences for recruiting and compensation.” The survey found that 78% of students were more inclined to apply for a job with a company with excellent environmental performance, 80% were more likely to accept a job with such a company, and 44% would accept a lower salary to work for a sustainability standout. The survey was conducted by Yale University in collaboration with the Global Network for Advanced Management and the World Business Council for Sustainable Development.