We kept our ear to the ground at New York Climate Week for the interesting stats, insights and discussion points you need to feel in the know.
1. Go green or go home
The investment scene is getting a makeover, and sustainability is becoming a big deal for financial success. Private equity and venture capital firms are realizing they can’t just play by the old rules, focusing only on the numbers. They’ve got to put sustainability front and center in their strategies if they want to keep up and keep the money rolling in. But it’s not just about making more money; it’s also about playing it smart with risks. Companies are now super careful about how new tech fits with their green goals, and that’s a big win for managing potential investment hiccups. Plus, with all the new rules on climate change and people wanting greener options, firms that have their sustainability game on point are in a much better spot to dodge trouble and grab new opportunities. Tech’s also getting in on the action by investing in tech-savvy, eco-friendly startups making it a smart move for PE and VC firms, not just for the growth potential but also for boosting their own green credentials. Going green isn’t just good for the environment, it’s good for business.
A New Era of Value Creation: Sustainability in PE/VC
2. Human impact with artificial intelligence
In the race to meet the United Nations Sustainable Development Goals, we’re up against a ticking clock and a widening funding gap. Enter AI, the game-changer with a double-edged sword: it’s poised to supercharge our efforts, yet it could deepen divides if we’re not careful. That’s where EY steps in, teaming up with Devex to harness AI’s might for good. Picture this: a thousand pros from the frontlines of global development, plus AI experts, all putting their heads together. The mission? To make AI a force for inclusive growth. And the findings? A treasure trove of insights, with the top five perks of AI in development work shining bright. But it’s not just about the tech — it’s about access, empowerment, and trust. The future is smarter with AI, and we’re just getting started…
AI for good: Why AI has the potential to achieve the SDGs
3. Reporting for duty
What are board members across Europe discussing on the Corporate Sustainability Reporting Directive (CSRD)? EY’s Andrew Hobbs sat down with them to learn about how they’re guiding companies through the CSRD maze, their experience with sustainability reporting and the issues they’re facing. First off, sustainability reporting? It’s not just paperwork. It’s actually a golden ticket for businesses to rethink and revamp how they do things, all while keeping an eye on being green. It’s about setting goals, taking action, and keeping track of how you’re doing, which in turn, can really jazz up how a company talks to investors and banks about getting the funds to go greener. Turns out, a lot of companies are scrambling because they don’t have the solid data they need to show they’re making a difference. While the CSRD is undoubtedly presenting challenges to boards and their companies, it is also presenting them with huge opportunities…
4. One byte at a time
Sustainability and data go hand in hand. Making eco-friendly decisions requires accurate data on things like travel options and operational impacts. However, data often needs cleaning and processing before it’s actually useful. That’s where an ESG data platform comes in, helping to manage and analyze data for better environmental decision-making. Companies are on a path to sustainability, and it all hinges on quality data that’s integrated into everyday work. The EY 2023 Work Reimagined Survey shows that people are optimistic about generative AI improving productivity and flexibility. Data capture is essential. It’s about understanding the carbon footprint of suppliers and individual employee activities. This data is then integrated into a platform to inform various sustainability initiatives within the company. Here’s how data is shaping the future of sustainability…
Data and the future of workplace sustainability
5. The greenwashing cycle
Greenwashing is when a company claims to be environmentally friendly or doing good for the planet, but it’s mostly just for show. Bringing forth a time of reckoning, the era of simply setting goals has passed. Stakeholders are now demanding tangible results, and any disparity between promises and progress risks the perilous accusation of greenwashing. Boards are struggling to turn lofty sustainability goals into tangible results amidst economic turbulence and deep-rooted barriers. While some companies are hitting the brakes on their sustainability efforts, others are doubling down, embedding green strategies into their business DNA. How do they do it? By smashing silos, fostering empathy, and mastering the art of storytelling, the ‘sustainability trifecta’ — CFOs, CSOs, and board members — of trailblazing firms are redefining the landscape. Hear from leaders who are not just surviving but thriving by placing sustainability at the heart of their business strategy…