High inflation rates have persisted for quite some time now. As a result, inflation affects both (a) how businesses operate in a high inflation environment and (b) how consumers respond with their purchase decisions. In an inflationary environment, businesses face higher costs due to increased input prices. Staff costs rise too as the company needsContinue reading “Inflation, Sustainability and Consumer Behaviour“
Category Archives: Uncategorized
Stranded Assets and Finance
The shift to net-zero requires moving away from fossil fuels (coal, oil, and gas) and decarbonizing production processes and supply chains. Thus, new equipment or new methods may be required. This results in stranded assets. In this article published in Artha (journal of IIM Calcutta) I explore stranded assets and their implications and focus onContinue reading “Stranded Assets and Finance”
A Just transition
Faced with the climate crisis, companies are rapidly transitioning to a green economy. However, this transition is often painful, disrupting people’s lives and livelihoods. Businesses have often gone about the transition as if “transition is assured, justice is not.” Trade unions questioned this mindset in the US in the 1990s. The concept of just transitionContinue reading “A Just transition”
Earnings Calls and ESG
Companies periodically provide financial and increasingly non-financial information to the public to reduce the information asymmetry between investors and the company. Apart from annual reports, communication takes place through three mechanisms: (a) investor’s day, (b) earnings calls and (c) guidance calls. While some companies have started ESG calls, they are not particularly common. The timeContinue reading “Earnings Calls and ESG”
Where organisations go wrong on sustainability
The climate crisis has firmly pushed organisations to be more sustainable (or ESG-centric). While many organisations have done well and are on the path to becoming sustainable, others have struggled in their endeavours. Here are some roadblocks that hinder companies from becoming sustainable. Hierarchical mindset: The organisational culture is that of obedience. Employees only doContinue reading “Where organisations go wrong on sustainability”
Utkarsh Majmudar 