IoTask ESG/SDG Investment Consulting
A holistic design of better systems incorporating the best of innovation and technology to realize the true potential of sustainable approaches.
RE-IMAGINING SYSTEMS
THE OLD: Traditional business and investment has taken a bipolar approach to sustainability in investment design. Most entities focus on maximizing profit or returns on investment (ROI) and then as an afterthought allocate some funding to sustainability. This approach has a negligible impact in effect in either realizing the true long term potential of an investment and/or creating a better world.
THE NEW: What happens when sufficient thought is given to holistic design of better systems, incorporating the best of innovation and technology to realize the true potential of sustainable approaches?
Quality Education is one of the 17 official UN Sustainable Development Goals.
Extensive research and data demonstrates that sustainable elements lead to better investment performance in the long run.
A Better Company
ESG goals such as diversity and inclusion are a key determinant in better long-term business performance. In fact, companies with top quartile gender, ethnic and racial diversity are 15-35% more likely to generate above average shareholder returns.
A Better Culture
Diverse teams make better decisions, are more resilient, build more cohesive organizational cultures and innovate more consistently to deliver higher performance business outcomes. Inclusive teams make better and faster decisions, which in turn are consistently correlated with better financial performance, leading to 60% better results. Diverse teams make better decisions because they: (1) focus more on facts, (2) process facts more carefully, and (3) are more creative than homogenous teams.
A Better Climate
Similarly, the incorporation of ESG climate requirements leads to long-term better outcomes, reduces risk, and, in many instances, cost reductions. The clean energy transition is an opportunity, with studies showing that between $1.6 and $3.8 trillion of investment capital is needed annually to transform the supply side energy system, and a further $180 billion annually is required for adaptation.
A Better Economy
We find that economic empowerment and equity, leads to greater economic growth. Gender gaps cost the global economy an estimated 15 percent of GDP, while increasing female employment rates in OECD countries to match that of Sweden could increase GDP in those countries by as much as six percent. It is estimated that if the U.S. were to meaningfully close its racial wealth gap its GDP could be four to six percent higher by 2028.
Sustainability directives are not a problem for investing, they are the solution for the future of investment.
However, implementing ESG/SDG directives requires taking a holistic approach that builds a double bottom line into investment objectives and integrates the calculus of financial metrics with a calculus of sustainable metrics.
IoTask provides visionary, innovative, actionable innovation consulting to Government and Institutional Investor clients that support them in realizing the goal of integration ESG/SDG with traditional operations.
Our consulting includes education on best practice, visioning, creation of financing structures, metrics, monitoring and rollout of such integrated approaches.
How can we help you?
Let’s discuss what we can do to help you with ESG/SDG integrations.