Sustainability: Business and Investment Implications

The United Nations and global leaders in business and investment have emphasized the important role that the private sector can play in protecting the environment and promoting a more sustainable use of resources.

"What is needed now is a new era of economic growth — growth that is at the same time socially and environmentally sustainable. This call for action in the Forward to the 1987 Bruntland Report (Our Common Future), which emphasizes that economic growth is part of the solution not the problem, still rings true nearly 40 years later.

"Private sector leadership is vital to advance sustainable development and fight the existential threats of climate change, biodiversity loss and pollution."

Like Henry Ford's strategy over 100 years ago at the time of the mass introduction of the Model T Ford, Elon Musk had a similar strategy for switching from fossil fuels to renewable energy powered cars. "[Initially enter] the high end of the market, where customers are prepared to pay a premium, and then drive down [the] market as fast as possible to higher unit volume and lower prices with each successive model."

"Investing for the long term requires taking a long-term view of what will impact returns, including demographics, government policy, technological advancements, and the transition to a low carbon economy."

"Capital markets are an extraordinarily powerful tool in the fight against climate change. Government action is certainly critical. But ultimately, reducing emissions globally depends on the private sector recognizing the commercial opportunities that sustainability presents."