ystem change is a large opportunity for the corporate and financial sectors. It soon will be an essential component of the most advanced corporate sustainability and responsible investing strategies.
These fields have become mainstream over the past 20 years. The global sustainable/responsible investing (SRI) market is about $40 trillion. Corporate sustainability and SRI have provided many benefits to business and society. However, in spite of this good work, environmental and social conditions are declining rapidly in many areas. The invasion of Ukraine, climate change, political division and many other issues pose large and growing challenges. New sustainability approaches are needed to protect business, investors and society.
SCI expands current ESG analysis by adding a system change component.
Current corporate sustainability and SRI strategies largely are focused on helping companies to reduce negative impacts and address climate change and other problems. But these problems are symptoms. They cannot be resolved unless root causes are addressed. Flawed economic and political systems unintentionally compel businesses to degrade the environment and society. Companies often can increase profits by lowering negative impacts up to a point. Beyond this point, costs usually go up. If they continue to mitigate, they will put themselves out of business. This is a system problem, not a company problem. Read more
