Balancing Sustainability With Investor Returns: 2024 Annual Financial Services Dinner

Against the backdrop of climate change, a complex macro environment, advancing technological developments, difficulties in mobilising capital and geopolitical tensions, the primary question under discussion was: how can sustainability impact be balanced with investor returns?

Anne Murphy, Global Head of the Financial Service Practice at Odgers Berndtson, welcomed 120 board, CEO and executive committee attendees representing the breadth of the financial ecosystem. The event explored the stark realities of mobilising capital to support a more sustainable future.

Insights from Baroness Dambisa Moyo

Baroness Dambisa Moyo began by highlighting the urgency of addressing sustainability amidst slow economic growth and global tensions. Emphasising the complexities of the energy transition in a high-interest-rate environment and the need for global cooperation, the trade-offs between sustainability goals and economic realities were explored, particularly in emerging markets.

Dambisa advocated for substantial investment in innovative energy solutions like hydrogen and carbon capture, while also critiquing the lack of investment in domestic markets by pension funds and other institutional investors, suggesting a need for government and private sector collaboration.  

Discussing the economic context and energy consumption, it was noted that 100 million barrels of oil are consumed daily around the world by a population of approximately 8 billion people; it is projected that by 2100, the global population will rise to reach between 10.4 to 11 billion. This growth, particularly in countries with slow economic development, further complicates the energy transition. 

Insights from Odile Renaud-Basso 

Odile Renaud-Basso underlined the necessity of addressing climate change despite the high costs involved, stressing the greater cost of inaction. She explained the role of the EBRD in financing green transition projects and facilitating private sector investment in emerging markets.

Odile also discussed the challenges posed by geopolitical trends such as protectionism and the north-south divide in achieving climate goals. She emphasised the potential for developing countries to become energy exporters through renewable energy, and the crucial role of public and private investment, carbon pricing, and regulation in driving energy efficiency and the green transition.

The discussion turned to the geopolitical and economic implications of the current global trend towards protectionism, which poses significant challenges to the green transition. Fair and consistent global sustainability policies are needed to address these challenges and facilitate meaningful progress.  

The journey is undoubtedly complex, with a greater imperative than ever on collective effort, strategic investments and the right leadership, towards a sustainable future.  

The Odgers Berndtson team would like to extend thanks to Odile Renaud-Basso and Baroness Dambisa Moyo for their insightful address and participation in the discussion. 

__________________________________________________________

Get in touch. Follow the links below to discover more, or contact our dedicated leadership experts from your local Odgers Berndtson office here.