Financing the Shift to Net Zero

The shift to net-zero requires both a transition in global energy and a significant reduction in greenhouse gases emitted by industries. Both require huge levels of investment.  However, most investments required to shift to net zero are large, complex, and risky. This raises an interesting question of where the money will come from to achieve net-zeroContinue reading “Financing the Shift to Net Zero”

ESG Share buybacks: Innovative ESG Finance

An innovation in ESG finance is taking root. An essential part of the “S” of ESG is the commitment to stakeholders. Returning money to shareholders rather than investing in negative NPV projects is one such commitment. In an ESG buyback, a company allocates part of the outperformance of its share buyback to the funding ofContinue reading “ESG Share buybacks: Innovative ESG Finance”

The Investor Relations Officer for a Net Zero World

Companies are facing a brutal assault from many fronts: Activist investors like Engine no. 1 has brought oil majors to its knees. Large institutional investors like BlackRock, Vanguard are pushing companies to up their ESG game. Customers are up in arms and are pushing companies through their role as shareholders in making their products andContinue reading “The Investor Relations Officer for a Net Zero World”

The Evolution of Materiality: Double to Dynamic

Materiality is a fundamental concept in accounting. A piece of information is material if it influences someone’s decision. According to the US SEC, if the information on a company is material, it should be disclosed if a reasonable person considers it important.Information that is material in one setting may not be material in another. Typically,Continue reading “The Evolution of Materiality: Double to Dynamic”