IGPN - International Green Purchasing Network

March 11, 2015

Blackrock, Unilever, PVH on sustainability from investors to boards of directors

Helle Bank Jorgensen
Wednesday, March 11, 2015 - 2:00am

When the world’s largest asset manager lays out the business case for a long-term sustainable strategy, others would be wise to listen.

BlackRock, the world's biggest investor with more than $4.3 trillion in assets under management, has very strong ideas when it comes to managing risk as part of a company’s sustainability blueprint.

“When we are looking at companies, one of the things we are concerned with is: are they taking a short-term risk that may bump earnings up in the near term, but at the expense of the long-term viability of the company?" said Chad Spitler, managing director and global COO of BlackRock’s Corporate Governance & Responsible Investment Team, during a recent webinar I hosted on Corporate Sustainability and Long-Term Thinking in the Board Room.

Spitler added: "When it comes to our views on sustainability and engaging with companies, we are looking for this kind of strategic thinking at the board level.”

That logic underscores the recurring theme of integrating sustainability into core business models. From an investor’s stand point, Spitler wants to see sustainability presented within the context of a business' key value proposition.

“What we don’t want to see are sustainability reports that are separate or unrelated to business growth or risk," he said. "What we really want to see is how sustainability principles are related to risk and opportunity for each business and how is the company managing that."

When major financiers assert that the "link between the business case and sustainability is exactly what we’re looking for," as Spitler said, it becomes increasingly hard to argue against the business case for sustainability.

Read more at GreenBiz.

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