CEO changes and net zero plans

A recent news story attracted my attention: “Shell has abandoned plans to cut oil production each year for the rest of the decade, in a shift in approach to firmly target fossil fuels and increase payouts to shareholders under its new chief executive.” This got me thinking about the future of net zero. The effortContinue reading “CEO changes and net zero plans”

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”

Linking Executive Compensation and ESG: Navigating a Minefield

ESG issues are shaking up boards and CEOs. As a result, companies are increasingly considering tying CEO compensation to ESG issues. Some of the marquee companies that link executive compensation to ESG include Apple, McDonald’s, Rio Tinto, Royal Dutch Shell, and Unilever. European and British companies have taken the lead. According to a survey byContinue reading “Linking Executive Compensation and ESG: Navigating a Minefield”