How the financial sector can speed up the green transition
Jun 5, 2024
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Janneke Hermes, CFO at Nederlandse Gasunie, joins host Dirk Schoenmaker to discuss how corporate finance can align with sustainability goals, guiding funds to accelerate the green transition. They explore new models for firms to quantify social and environmental costs, while ensuring returns for investors. The conversation delves into transitioning to green technologies and the role of the financial sector in driving sustainability worldwide.
Shift in mindset: Corporate finance should consider societal impact beyond financial gains.
Transition in strategies: Companies are quantifying social and environmental impacts to adapt to changing needs.
Deep dives
Corporate Finance and Sustainability: Finding Common Ground
Corporate finance and sustainability are often perceived as conflicting concepts, with investments typically viewed in terms of monetary gains. However, the podcast highlights a different perspective where these two realms can align. Dirk Schumacher emphasizes that business decisions should extend beyond financial gains to consider their broader impact on society and the economy. This shift in mindset urges companies to assess their contributions to the real economy, emphasizing factors like social welfare, environmental sustainability, and long-term survival.
Practical Implementation of Sustainable Policies in Finance
The podcast delves into the practical aspects of incorporating sustainability into corporate finance strategies. Janneke Hermez discusses the evolving approach in companies towards accounting for factors beyond traditional monetary metrics. Companies are transitioning from solely focusing on financial gains to quantifying social and environmental impacts like CO2 emissions, safety measures, and environmental considerations in their decision-making processes. By emphasizing the importance of retaining flexibility, companies can better adapt to changing market dynamics and societal needs.
Shifting Perspectives on Investment for Future Sustainability
The conversation highlights a paradigm shift towards valuing social and environmental aspects alongside financial metrics in investment decisions. The discussion centers on assessing the long-term survival and adaptability of companies to future trends like climate change and sustainable practices. By encouraging a more holistic view of investments, the podcast emphasizes the need for businesses to consider ethical implications and the broader social impact of their operations. This approach aims to steer companies towards more sustainable and resilient business models for long-term success.
They talk about how corporate finance and sustainability can go together. New models can help firms quantify the cost of social and environmental factors, so they can plan better for the long term. The podcast also explores how investors can guide funding to certain companies and projects without sacrificing return and thus speed up the transition to a sustainable economy.
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