Danielle speaks at more than events per year, including major conferences and events all over the world. Socially responsible investing has matured beyond negative screening to become a value-seeking discipline and a positive impetus for change.
But the unfortunate effect of our seeing these inputs to well-being as incalculable has been that they are treated as free. That is precisely what happens when ecosystem service valuations are applied to VCIs: Not only does the blouse designer in our previous example get a better rating for selecting sustainably grown organic cotton, the VCI also shows her the economic impact of that choice.
Even less money is invested in the small and medium enterprises SMES that provide crucial jobs in rural and urban areas alike, and which make up the bulk of the food inputs, production, processing and distribution systems in developing economies.
A VCI uses such data to set realistic parameters within each category and provides a basis for weighing categories against one another to give priority to impacts deemed to have the most negative consequences. Companies that want access to such rewards must voluntarily provide a level of transparency into their operations that goes beyond regulatory reporting requirements.
Define the dimensions of measurement. None of the players that could potentially drive this scale—retailers, consumers, governments—are demanding such action in any organized or sustained way.
One last consideration driving fund managers toward sustainability-focused investments is hard to prove but widely suspected: Companies taking the lead in environmental, social, and governance matters have better management teams.
Have you read? Data, Vision, and Will The global population is projected to grow from 6. Other approaches seek to crowd-in private investments and optimize the use of scarce public resources to achieve sustainable development goals, for example by improving the policy and regulatory environment, reducing transaction costs and risks, and promoting environmental and social sustainability.