Investment Leaders Group (ILG) have created two new tools for investors to tackle short-termism and the lack of transparency in the financial sector. ILG is a group of investors brought together by the University of Cambridge Institute for Sustainability Leadership and include ten pension funds, insurers and asset owners. Short-termism is a focus on short-term projects and objectives that leads to immediate profit, but at the expense of long-term security.
The ILG have noted that short-termism is “regularly cited as a barrier to companies making more progress towards sustainable business practices.” To tackle this they created a toolkit of ten design features that will help to develop active equity mandates with varying strengths of “sustainability” integrated into them.
They see the future as more long-term responsible and sustainable investment (LTRSI) based, although they admit some parts of an asset owner’s portfolio will need to have a shorter-term outlook to meet certain liabilities or regulatory liquidity requirements.
By using and adjusting the ILG’s toolkit to suit their individual circumstances, investors could make a significant contribution to countering the negative business and economic effects of short-termism, and promote environmental and social sustainability.
The long-term vision of the ILG’s work is “to shift the investment chain towards responsible long-term value creation, such that economic, social and environmental sustainability are delivered as an outcome of the investment management process alongside robust long-term investment returns.”
The framework of the second tool in the ILG’s report published today, uses the United Nations Sustainable Development Goals (SDGs) as a starting point, and simplifies them into a set of six impact metrics for investors.
The six impact metrics are: basic needs, wellbeing, decent work, resource security, healthy ecosystems and climate stability.
Through this tool investors can calculate and communicate their funds’ contribution to the “sustainability” metrics, which will allow their clients to understand their investments’ broader impact.
The report is targeted at a wide range of beneficiaries including: individual savers and investors, pension funds, insurance companies, family offices, sovereign funds and all other forms of asset owner. The idea is to empower these beneficiaries to decide whether their money is being invested in projects that resonate their beliefs and values.
The ILG want fund managers, consultants and investment platforms to use their framework to “form a clearer view of the impacts of asset choices, both to meet the expectations of clients and beneficiaries and to enhance their position in a growing market for responsible investment products.”
Their anticipation is that the details in their report will allow the financial services sector to build up trust with their customers through transparency, in a similar way other sectors, like food and energy, have.
To learn more about the ILG visit their website here.
A Good Look At How Homes Will Become More Energy Efficient Soon
Everyone always talks about ways they can save energy at home, but the tactics are old school. They’re only tweaking the way they do things at the moment. Sealing holes in your home isn’t exactly the next scientific breakthrough we’ve been waiting for.
There is some good news because technology is progressing quickly. Some tactics might not be brand new, but they’re becoming more popular. Here are a few things you should expect to see in homes all around the country within a few years.
1. The Rise Of Smart Windows
When you look at a window right now it’s just a pane of glass. In the future they’ll be controlled by microprocessors and sensors. They’ll change depending on the specific weather conditions directly outside.
If the sun disappears the shade will automatically adjust to let in more light. The exact opposite will happen when it’s sunny. These energy efficient windows will save everyone a huge amount of money.
2. A Better Way To Cool Roofs
If you wanted to cool a roof down today you would coat it with a material full of specialized pigments. This would allow roofs to deflect the sun and they’d absorb less heat in the process too.
Soon we’ll see the same thing being done, but it will be four times more effective. Roofs will never get too hot again. Anyone with a large roof is going to see a sharp decrease in their energy bills.
3. Low-E Windows Taking Over
It’s a mystery why these aren’t already extremely popular, but things are starting to change. Read low-E window replacement reviews and you’ll see everyone loves them because they’re extremely effective.
They’ll keep heat outside in summer or inside in winter. People don’t even have to buy new windows to enjoy the technology. All they’ll need is a low-E film to place over their current ones.
4. Magnets Will Cool Fridges
Refrigerators haven’t changed much in a very long time. They’re still using a vapor compression process that wastes energy while harming the environment. It won’t be long until they’ll be cooled using magnets instead.
The magnetocaloric effect is going to revolutionize cold food storage. The fluid these fridges are going to use will be water-based, which means the environment can rest easy and energy bills will drop.
5. Improving Our Current LEDs
Everyone who spent a lot of money on energy must have been very happy when LEDs became mainstream. Incandescent light bulbs belong in museums today because the new tech cut costs by up to 85 percent.
That doesn’t mean someone isn’t always trying to improve on an already great invention. The amount of lumens LEDs produce per watt isn’t great, but we’ve already found a way to increase it by 25 percent.
Maybe Homes Will Look Different Too
Do you think we’ll come up with new styles of homes that will take off? Surely it’s not out of the question. Everything inside homes seems to be changing for the better with each passing year. It’s going to continue doing so thanks to amazing inventors.
ShutterStock – Stock photo ID: 613912244
IEMA Urge Government’s Industrial Strategy Skills Overhaul To Adopt A “Long View Approach”
IEMA, in response to the launch of the Government’s Industrial Strategy Green Paper, have welcomed the focus on technical skills and education to boost “competence and capability” of tomorrow’s workforce.
Policy experts at the world’s leading professional association of Environment and Sustainability professionals has today welcomed Prime Minister Teresa May’s confirmation that an overhaul of technical education and skills will form a central part of the Plan for Britain – but warns the strategy must be one for the long term.
Martin Baxter, Chief Policy Advisor at IEMA said this morning that the approach and predicted investment in building a stronger technical skills portfolio to boost the UK’s productivity and economic resilience is positive, and presents an opportunity to drive the UK’s skills profile and commitment to sustainability outside of the EU.
Commenting on the launch of the Government’s Industrial Strategy Green Paper, Baxter said today:
“Government must use the Industrial Strategy as an opportunity to accelerate the UK’s transition to a low-carbon, resource efficient economy – one that is flexible and agile and which gives a progressive outlook for the UK’s future outside the EU.
We welcome the focus on skills and education, as it is vital that tomorrow’s workforce has the competence and capability to innovate and compete globally in high-value manufacturing and leading technology.
There is a real opportunity with the Industrial Strategy, and forthcoming 25 year Environment Plan and Carbon Emissions Reduction Plan, to set long-term economic and environmental outcomes which set the conditions to unlock investment, enhance natural capital and provide employment and export opportunities for UK business.
We will ensure that the Environment and Sustainability profession makes a positive contribution in responding to the Green Paper.”