It is no news that production has an outsized impact on the environment and Scope3 emissions of companies through its appetite for energy and water, and the production of waste products that can pollute rivers and streams.
Major retailers including Decathlon, H&M, Philips, LEGO have already joined the EU’s Green Consumption Pledge Initiative and Regulators are taking action as with Europe’s ‘Corporate sustainability due diligence’ proposal that will also emphasize on supplychain behavior. EU also has its circular economy action plan (CEAP) that covers the entire life cycle of Textiles, Electronics, Packaging, Batteries.
Nevertheless, UN estimated that our world currently faces US$100 trillion shortfall in fight against climate change, inequality (link). While the finance sector has aligned to support sustainable development under the auspices of UN PRI and similar initiatives, there’s a lack of tools to help identify suitable projects to bankroll.
“What is very often missing is a clear definition and agreement on the KPIs and metrics that will be used to manage and track the impact of these investments. In effect, they need a way to measure success and calculate R.O.I.,” said Rakesh Vazirani, Head of Sustainability Services, Business Stream Products at TÜV Rheinland.
He outlines 2 steps to help make it happen:
Time to make Impact Finance mainstream
Join us on Oct 5, Workshop C, at 11:45 AM