Shareholder activism and Sustainability: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
imported>Doug Williamson
(Expand for Sustainability Accounting Standards Board.)
 
Line 1: Line 1:
''Activist investors - environmental social and governance (ESG) concerns.''
Sustainability has two important dimensions in treasury and finance.


Shareholder activism seeks to influence major decision making at a company by voicing concerns, engaging in a dialogue with management, or lobbying others for support.


Areas of concern often include ESG.
=====Environmental sustainability=====
Environmental sustainability involves making decisions and taking actions which expressly take responsibility for the impact on the environment, and avoid depleting or degrading natural resources such as soil, water, forests, and biological diversity.


Activist investors sometimes take minority stakes in companies with the express purpose of bringing about significant changes.


=====Financial sustainability=====
Financial sustainability is achieved when an organisation is able to earn sustainable financial surpluses and generate cash in the medium and longer-term.


==See also==
For example in order to pay back borrowings, with interest, over time.
*[[Active investment]]
 
*[[Activist investor]]
 
*[[Equity]]
Historically, it was generally considered that there was a conflict between environmental sustainability and financial sustainability.
*[[ESG]]
 
*[[ESG investment]]
Arguably though, it is perhaps only environmentally sustainable businesses which are fully financially sustainable.
*[[Responsible investment]]
 
*[[Shareholders]]
This proposition suggests that there need be no conflict between an organisation’s environmental and financial objectives, when a sufficiently long-term view is taken.
*[[Sustainable investment]]
 
 
== See also ==
* [[Accounting for Sustainability]] (A4S)
* [[Business & Sustainable Development Commission]]
* [[Carbon footprint]]
* [[Corporate social responsibility]]
* [[Metaeconomics]]
* [[Natural capital]]
* [[Organic]]
* [[SRI]]
* [[Sustainability Accounting Standards Board]]
* [[Sustainability bond]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 13:45, 5 March 2018

Sustainability has two important dimensions in treasury and finance.


Environmental sustainability

Environmental sustainability involves making decisions and taking actions which expressly take responsibility for the impact on the environment, and avoid depleting or degrading natural resources such as soil, water, forests, and biological diversity.


Financial sustainability

Financial sustainability is achieved when an organisation is able to earn sustainable financial surpluses and generate cash in the medium and longer-term.

For example in order to pay back borrowings, with interest, over time.


Historically, it was generally considered that there was a conflict between environmental sustainability and financial sustainability.

Arguably though, it is perhaps only environmentally sustainable businesses which are fully financially sustainable.

This proposition suggests that there need be no conflict between an organisation’s environmental and financial objectives, when a sufficiently long-term view is taken.


See also