The Big Picture and the overall impact of ESG issues
Tim Harford kicked off the panel by taking the room back to 1990s Chicago – and a disastrous heatwave. Failures to heed weather forecasters warnings, unexpected and unprecedented use of air-conditioning units that caused power outages, and struggles with mobilising older people to seek cooler temperatures all contributed to 739 people losing their lives in just five days.
What could have prevented such significant loss of life? What did we learn? Better governance, well-funded services, more energy efficient air-conditioning units, improved data transparency, and nicer, safer communities save lives. We all agree that these are things we would want anyway. So then, when it comes to spending to save the environment – a task that has been put off for years – we are also spending to create a better, more liveable, friendlier society. We can kill two birds with one stone.
The impact of ignoring ESG issues is vast, but it goes further than that – with the right investment and planning we can seize opportunities that benefit the environment and our communities.
The problems faced by early stage entrepreneurs
Nick Sturge – who now works with entrepreneurs across the South West and beyond – identifies some of the issues he sees when working with young companies. Despite what we may have been told, he says, many senior leaders are older – in their 40s and 50s – with a background in industry and real insight on what they want to achieve. But this is often lost in translation.
As happens so often, start-ups often focus on the money – believing this is what investors and other stakeholders want to see. In fact, most founders will have started their business to resolve an issue. They have a mission, a purpose, and a passion that drives success. Being forthright about these things is good for the planet, the business and the economy.
The diversity of new businesses is also a strength. There is potential to share knowledge across sectors, taking advantage of the huge amount of energy within start-ups to share examples of best practice and stimulate more growth and better governance through diverse thinking. Diversity is needed in the workforce too, but employers need to work hard at all levels to achieve that.
And from an analysis and data point of view, taking a holistic view of a business is critical. Using the information available nudge CEOs in the right direction, show how everything works together, and demonstrate how this is used to take decisions – balancing profit and purpose – will help companies to appear stronger to investors.
