Global Impact Initiative’s Founder and CEO, Giles, who has served on FINSIA’s Funds and Asset Management Industry Council and New South Wales Regional Council said: “The lens is very firmly on how we can be better, whether it's individuals, corporates, or government.
“How do we improve our impact on the environment? How do we make a social impact and a social contribution, and how do we improve our governance in everything that we do? This ensures ESG is very firmly embedded.
“Interestingly, in places like Europe, they're not talking about ESG because it's embedded.”
Many of the larger pension funds in Europe have set up investible themes that align with the UN SDGs - climate solutions, gender equality and/or designing more inclusive communities. These funds are asking “How do I move my money into these areas in order to effect positive change?
“The great thing is we're not talking about white papers, we're not talking about theory. There are so many working examples out there.”
Giles also highlighted the importance of private equity and venture capital investments where investors have put their money into a company because it's good for the environment, but also because the growth of the sector has delivered outsized and sustainable returns. “I can measure the social impact, the environmental footprint and also get a fantastic financial return.
“This is not about charity, it's not about sacrificing returns, it's how do we create sustainable financial returns alongside actionable, intentional social impact.”
While the Labor government increased Australia’s targets for reducing emissions just over a year ago, Giles admitted that up until recently progress had been slow.
But he is optimistic.
“Australia is, I often say, very slow adopters but fast followers,”
“If one gets on the train, everyone gets on the train and we haven't seen anyone sizeable (in terms of investment) get on that train….yet. Once it does happen it will create positive noise and more importantly momentum."
The other reason for Giles’ enthusiasm and optimism resides in the changing conversations he is part of and witnessing.
“Shareholders are demanding, listed companies, be more cognisant of ESG, employees are pushing their bosses to adopt ESG and to ramp it up in their offices, and incorporate it into the way that they do business.
“And we all know that companies are motivated first by customers.
“If your customers are saying, why aren't you doing this? Can you do this? You should be doing this….companies will change for fear of losing customers.
"The general consensus is that we need to do better and leave the environment in better shape than we found it but also reduce the inequality gap which is getting wider. It will take huge amounts of money and a change in behaviour but it is possible because as Ban Ki-Moon (ex UN Secretary General) once remarked “There is no Plan B, because there is no Planet B”
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Read more about his Order Australia Medal and FINSIA Membership
