The Investment Logic for Sustainability
It also acknowledges that human civilization takes resources to sustain our modern way of life.
By looking these words of Ban Ki-moon, I was a bit clear about the concepts of sustainable development. We need to invent a new model – a model that offers growth and social inclusion – a model that is more respectful of the planet’s finite resources. That is why I have made sustainable development my number one priority.”” (Ban Ki-moon United Nations Secretary-General Rio+20 Newsletter: Making it Happen. Watching the video the story of stuff by Annie Leonard we get very different and diverse views. In this video she introduced a new school of thinking, when people along the system get united we can reclaim and transform the system into new, a system which doesn’t waste resources or people. After watching the video, the issues Annie expressed were relevant and meaningful. On contrast to my thinking after watching The story of solutions was very effectively presented.
In order to create value in a company, the three forms of capital are required i.e financial capital, physical capital and lastly human capital. A combination of these three types of capital yields outstanding results over the long term only if environmental and social governance is implemented. Technology can be used to solve the problem of sustainability of production by firms. With the advancement in science and technology, matters of sustainability are slowly being solved for instance in agriculture, science has enabled the yield of better crops that mature faster and hence food sustainability in future may heavily rely on science advancement. Scientists hold the key to sustainability in most processes that involve the use of biological resources. Some materials used in production can now be synthesized in laboratories in case their natural forms are exhausted which means that sustainability can be achieved albeit at a costly price in terms of financial, physical and human capital.
John F Kennedy stated “There are risks and costs to a program of action, but they are far less than the long-range risks and costs of comfortable inaction”. It makes sense to invest sustainably so that we can retire wealthy, but also into a better world.
Chris McKnett: The investment logic for sustainability Web. 24th Feb 2014