Newsletter from the Council for Inclusive Capitalism

In this edition, we’re exploring how strategic collaboration and proactive engagement across sectors are driving meaningful change in sustainable finance, social justice, and climate action. Discover key initiatives from Council members and insights on how financial markets can accelerate a just transition. Your voice matters. We welcome your thoughts and suggestions – click here to share your feedback. Shaping Tomorrow: Collaborative Solutions for Today The challenges facing our society and planet require bold new approaches to our engagement as investors, stewardship as companies and collaboration across public, private and civic sectors. Gone is the era when government action alone could address inequality or environmental degradation, or when market actors could independently incubate and scale solutions. The 21st Century demands proactive, strategic initiatives which complement our respective sectors and efforts by strengthening those policy levers and unleashing market scale. Our next-generation strategies must foster collaboration, pool resources, share both risks and opportunities, and scale positive outcomes. By aligning our efforts across sectors, we can create powerful frameworks that drive systemic change for the benefit of both people and the planet. I recently discussed how financial markets can play a bigger role in driving a just green energy transition. Council members are already leading by example in this area. Temasek’s sustainable living portfolio demonstrates the power of engaging with diverse industries to drive climate action. Council members are also collaborating to address broader challenges at the intersection of finance, social justice, and climate action. The preliminary work of the Taskforce on Inequality and Social Finance Development (TISFD) underscores our commitment to pooling resources and expertise to create systemic change. These efforts exemplify the proactive, cross-sector strategies essential for building a more resilient and inclusive future and set a precedent for how financial markets and strategic collaboration can be harnessed to address our most pressing global challenges. The urgency of our time calls for nothing less than a unified effort to catalyze positive change. Together, we can drive long-term value toward a more resilient and inclusive world. Onward, Lynn Forester de Rothschild

The Council in Action

In our ongoing efforts to highlight inclusive capitalism best practices, we are excited to feature an exemplary initiative in sustainable finance. This work showcases how inclusive capitalism is driving innovative solutions to climate change through large-scale capital deployment.

Temasek, Singapore’s investment giant, is making waves with its S$44 billion portfolio value in sustainability-focused and climate transition investments. What does this mean for the future of finance and our planet?

Our highlight reveals:

• How Temasek is balancing returns with environmental impact
• Its ambitious goal to halve portfolio emissions by 2030
• Real-world examples of game-changing investments, from EVs to clean energy tech
• Lessons for investors of all sizes in the era of climate change

Click here to discover how Temasek is unlocking capital for climate solutions at an unprecedented scale.

Click to Watch – Chia Song Hwee, Deputy CEO of Temasek On Catalyzing Green Transition Financing

Resource Highlight | B4IG WORK CYCLE ON LIVING WAGE

This month, we are pleased to highlight a resource from ally member, Business for Inclusive Growth (B4IG). “B4IG Work Cycle on Living Wage: Key Learnings, Tools, and Tips,” offers comprehensive insights and practical advice for companies committed to promoting decent living standards.

Key Takeaways:

• Corporate Commitment: Discover how top management can effectively prioritize the living wage agenda, facilitating internal alignment and supplier engagement.
• Practical Guidance: Learn from peer exchanges on conducting gap analyses, engaging in social dialogue, and closing the wage gap.
• Transparency and Reporting: Understand the importance of transparent reporting and the role of third-party auditing in ensuring fair wages.
• Collaborative Efforts: Explore the benefits of multi-stakeholder initiatives and collective action to amplify impact.

This resource is an essential guide for organizations dedicated to fostering economic inclusivity and sustainable growth. We encourage all our members to utilize these insights to drive positive within their organizations and beyond.

Welcome New Council Members

The Council welcomes Dr. Peter R. Orszag as our newest member of the Steering Committee. Dr. Orszag is the CEO and member of the Board of Directors of Lazard, one of the world’s preeminent financial advisory and asset management firms. Prior to becoming Chief Executive of the firm in October 2023, Orszag served as CEO of its financial advisory business and global co-head of its healthcare practice. Orszag’s extensive career across the public and private sectors, leadership and vision have been instrumental in driving the firm’s success and innovation. For more information, please visit www.lazard.com.

Our Steering Committee is a select and diverse group of leaders from a variety of industries, regions, and backgrounds that provide vital leadership for the Council. Together, we established and endorsed Principles for Inclusive Capitalism that offer a vision for a future with greater equality of opportunity and outcomes, care for those who are unable to participate fully in the economy, and fairness across generations.

The Council also proudly welcomes the following new stewards and allies:

John Camillus
Director of University of Pittsburgh Center for Sustainable Business

Gina D’Amato
Executive Director of The Alliance for Responsible Mining (ARM)

Ajaita Shah (not pictured)
Founder & President of Frontier Innovations Foundation

Nicholas Quinn
Founder & Co-CEO of iRefer Global

Jonathan Algreen
Founder & CEO of iBig

See all Council Members

Inclusive Capitalism in the News

The essential news and updates around inclusive capitalism and members of the Council.

• BPI Triumphs at FinanceAsia Awards: Best Bank in the Philippines and More
• Reliance Industries’ first solar giga-factory to be commissioned this fiscal year 
• BP announces initial FID on 2GW hydrogen project ​​​​​
• Singapore government, IETA launch carbon market alliance to nurture Article 6 market 
• Temasek-backed Sembcorp to invest $528 mln in urban solutions segment
• Aviva raised US$5.5 million to boost expansion for underserved in Mexico 
• India’s Reliance ready for next level of renewables-focused growth 
• Vale announces the selection of Gustavo Pimenta as its next CEO 
• DuPont Recognized with Two Sustainability Awards from Business Intelligence Group 
• DuPont honored for innovation in automotive sustainability at 2024 Altair Enlighten Awards 

Deeper Reading

To further explore the themes of inclusive capitalism, we’ve curated a selection of insightful studies and articles. These resources offer deeper perspectives on the complex challenges we face and innovative solutions being developed. We encourage you to dive in and expand your understanding of these critical issues.

ESG investors have a responsibility to respect human rights – here’s how to prevent ‘rightswashing’
Robert McCorquodale – World Economic Forum

The World Economic Forum’s Financial Systems blog explores the critical role ESG-driven investors play in upholding human rights, as well as steps they can take to avoid the risks of ‘rights-washing’ in a field which lacks sufficient global standards, and ensure their investments truly contribute to positive social impact..

Why and how you should distinguish between stakeholders
Paul Strebel – International Institute for Management Development

The International Institute for Management Development (IMD), in its paper series on governance and stakeholder management, explains the importance of differentiating various stakeholder groups for business strategies to truly account for their range of stakeholders and manage their diverse interests while driving business success.

ESG shareholder engagement and downside risk
Andreas G F Hoepner, Ioannis Oikonomou, Zacharias Sautner, Laura T Starks, Xiao Y Zhou – Review of Finance

The Oxford Review of Finance examines the methods of shareholder engagement which institutional investors have leveraged to make progress toward their ESG goals for corporate management, and their potential for enhancing corporate resilience over the longer term.