This article is part of the deliveries Sustainability analysisdrafted by members of the Sustainability Committee of CFA Society Spain for Electomista.es.
It can be observed, attending to the changing current reality, how The concept of sustainability reaches different meanings according to which people, environments or moments. We see it in the Annual Climate Survey of Robeco, with marked regional differences, and where each one has its definitions and priorities. In these times, more than ever, it is important to know how to understand other realities where the concept of sustainability drags added connotations or develops at another pace, depending on its context. VISIT ELECONOMISTA ESG, THE VERDE PORTAL DE ELECONOMISTA.com.
We are sure that, even if it were only because of the extreme climatic effects, this concept would not lose today. You may, with different rhythm and intensity, but The importance of sustainability will continue to increase in investor agendasWithout a doubt.
Sustainability is maintained as an optimal solution to many of our challenges as a society. While the human being is not intended to mark the decrease as an objective, it is to continue improving his condition and that of what surrounds him, but attending to his impact and aware of the value of use of natural resources. Needs inherent to society, such as the use of energy (fossil) and materials, have been amplified since the early twentieth century with the extraordinary growth of the population and gradual improvement in their quality of life. And, according to Marina Fischer-Kowalski, former director of the Institute of Social Ecology of Vienna, it is not economic growth that exerts pressure on the environment, but the growth of the physical flow of energy and materials that society processes. Even today, almost mid -transition from the signing of Kyoto, the consumption of fossil fuels increases globally despite the decrease in the energy intensity achieved. Trump attacks renewables and in Europe the pressure ‘anti sustainability’ grows.
This high consumption of fossil fuels It entails, both to its exhaustion over time, and to the accumulation of significant amounts of greenhouse gases in the atmosphere. Most scientists believe that these harmful emissions affect the heating of the weather and, therefore, for the unwanted purposes that this implies. Without going to discuss the fortune of terms such as “Red Code” or “Climate Emergency”, the truth is that as Hans Jonas said “we only know what is at stake, when it is at stake”, and the same is late to solve it.
Delaying, or not, will depend on the agility of the transition. For all this, the speed of change is characteristic of this transition, although as the Professor Vaclav Smil pointed out, world energy transitions have always dilated over time, they were not sudden. However, we demand this last transition not only that it abandons the fuel support that has driven this economic growth time, something that did not occur in previous transitions, but also produces three times faster. “This summer we started a megainversion of 3,000 million in Andalusia in the largest European hydrogen project.”
Reaching zero must involve progressive decarbonization of all sectors of the economy. When investing in transition we expect a change in favor for trust companies that have historically shown a negative impact. Inverting in this way in transition we promote a positive change, ensuring that the great emitters become part of the solution and stop meaning a problem.
Let us not forget that an effective transition tries to go to a cleaner economy, not just to increase the green economy. Investing in green technologies and renewable energies is important, but it represents less than 9% of the global economy. Hence, the investment in transition is a necessity at the moment, helping companies that, despite belonging to sectors with an activity not considered “green”, have credible ambitions for a sustainable future. It is here where an asset manager with capacity, and that understands the true meaning of sustainability for a society, must provide solutions.
In every change, the speed is the cause of the adaptation is not simple. For being this such a sudden climate change, The lack of adaptation puts in check to society and nature Ante, first, the potential physical risks. For the same reason, to apply a speed too high in the solution, economy and society may suffer the so -called transition risks. It is the speed imposed, and its sacrifices, which stir society against the justified advance of sustainable policies, not sustainability itself; Hence the challenge of a fair transition.
Many investment managers believe in capitalism with conscience, where sustainability should not be aside. A concept at all at all with profitability, and where you only have to escape the maelstrom of the moment to understand its benefit in the long term.
It will be in this educated capitalism, using the term of J. Gomá, where sustainability puts the focus and gives name to certain usual behaviors and best practices for many companies. Looking for expiration in a concept that exceeds the current thing of the moment, for motivation and by necessity, demonstrates to ignore what really involves sustainability for a society. Political fluctuations do not change the importance of such a solid strategy; It only changes the need to listen closely to investors, with their concerns and priorities, dialogue with them, and have the ability to offer particular solutions as their demand evolves.
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