Panel, Conference Presentation
Business Sustainability: Chasing the Triple Bottom Line
Milken InstituteRobin Hu, Achal Agarwal, Sophia Cheng, Hiromichi Mizuno, Pier Luigi Sigismondi, Peter Wayman, Christopher, Mr Lee, Benway Prosser, Andrew Cross
- GPIF expects to extend its ESG integration to the global equity portfolio soon, with asset managers mandated to incorporate ESG factors and engage companies in the coming years, while Hiromichi Mizuno predicts investor pricing of sustainability values will eventually match consumer expectations to yield higher returns.
- Unilever anticipates doubling its size and social impact while reducing resource usage, targeting purpose-led brands like Lifebuoy to grow significantly above market rates (17% over the last five years), and expects recycling technology in Indonesia to produce byproducts costing 20% less than virgin plastic.
- Unilever projects renewable energy agreements, such as a geothermal deal in the Philippines, will save approximately two million euros annually through reduced emissions and costs, while planning to accelerate cost-cutting for savings by 2022 or 2023 to balance shareholder pressure with long-term growth.
- Unilever expects 57% of global consumers and 88% in India to boycott brands lacking environmental or social commitments, a shift driven by younger generations questioning supply chain practices like child labor, whereas the company views B Corp certification as too complex for its 55 billion euro operations across 190 countries.
- Kimberly-Clark plans to source electricity from two wind farms in the U.S. to cover one-third of its U.K. consumption, with aspirational 2022 goals to improve the well-being of 25 million people, reduce product natural footprints by 50 percent, and achieve zero waste in the post-consumer marketplace.
- Cathay Financial Holdings intends to promote the Principles for Sustainable Insurance and Principles for Responsible Investment in Taiwan within the next year to establish a robust regulatory framework, while projecting that sustainability practices will mitigate future risks and aid in attracting top talent.
- Various speakers warn that without standardized frameworks for Social Return on Investment, ESG reporting risks becoming a PR exercise, and that the asset management industry faces pressure to rebuild its brand to attract young talent who are embarrassed by companies associated with social problems.
- Impact investing representatives note that while the sector remains small, investor interest in sustainable activities rises annually, with a prevailing view that success requires lowering costs to compete without charging consumers more, though a venture fund rep notes the increasing percentage of investors interested in these activities.