full transcript

From the Ted Talk by Chris McKnett: The investment logic for sustainability

Unscramble the Blue Letters

But it makes me wonder if the investment rules of today are fit for purpose tomorrow. We know that ivrseotns, when they look at a company and decide whether to invest, they look at financial data, metrics like sales growth, cash flow, market srhae, voaaituln — you know, the really sexy stuff. And these things are fntunedamal, of course, but they're not enough. Investors should also look at performance metrics in what we call ESG: environment, social and governance. Environment includes energy consumption, water availability, waste and pollution, just making efficinet uses of resources. scaoil includes human capital, things like employee engagement and ivnioatonn capacity, as well as supply chain management and labor rthgis and human rights. And governance relates to the oversight of companies by their boards and investors. See, I told you this is the really jiucy stuff. But ESG is the measure of sustainability, and sustainable investing incorporates ESG factors with financial factors into the investment prceoss. It means limiting fturue risk by minimizing harm to people and peanlt, and it means pniiodvrg capital to users who doelpy it towards productive and sustainable outcomes.

Open Cloze

But it makes me wonder if the investment rules of today are fit for purpose tomorrow. We know that _________, when they look at a company and decide whether to invest, they look at financial data, metrics like sales growth, cash flow, market _____, _________ — you know, the really sexy stuff. And these things are ___________, of course, but they're not enough. Investors should also look at performance metrics in what we call ESG: environment, social and governance. Environment includes energy consumption, water availability, waste and pollution, just making _________ uses of resources. ______ includes human capital, things like employee engagement and __________ capacity, as well as supply chain management and labor ______ and human rights. And governance relates to the oversight of companies by their boards and investors. See, I told you this is the really _____ stuff. But ESG is the measure of sustainability, and sustainable investing incorporates ESG factors with financial factors into the investment _______. It means limiting ______ risk by minimizing harm to people and ______, and it means _________ capital to users who ______ it towards productive and sustainable outcomes.

Solution

  1. efficient
  2. investors
  3. social
  4. providing
  5. future
  6. share
  7. rights
  8. juicy
  9. fundamental
  10. innovation
  11. valuation
  12. process
  13. deploy
  14. planet

Original Text

But it makes me wonder if the investment rules of today are fit for purpose tomorrow. We know that investors, when they look at a company and decide whether to invest, they look at financial data, metrics like sales growth, cash flow, market share, valuation — you know, the really sexy stuff. And these things are fundamental, of course, but they're not enough. Investors should also look at performance metrics in what we call ESG: environment, social and governance. Environment includes energy consumption, water availability, waste and pollution, just making efficient uses of resources. Social includes human capital, things like employee engagement and innovation capacity, as well as supply chain management and labor rights and human rights. And governance relates to the oversight of companies by their boards and investors. See, I told you this is the really juicy stuff. But ESG is the measure of sustainability, and sustainable investing incorporates ESG factors with financial factors into the investment process. It means limiting future risk by minimizing harm to people and planet, and it means providing capital to users who deploy it towards productive and sustainable outcomes.

Frequently Occurring Word Combinations

ngrams of length 2

collocation frequency
climate change 3
sustainable investing 2
investment process 2
esg performance 2
integrated esg 2
institutional investors 2

Important Words

  1. availability
  2. boards
  3. call
  4. capacity
  5. capital
  6. cash
  7. chain
  8. companies
  9. company
  10. consumption
  11. data
  12. decide
  13. deploy
  14. efficient
  15. employee
  16. energy
  17. engagement
  18. environment
  19. esg
  20. factors
  21. financial
  22. fit
  23. flow
  24. fundamental
  25. future
  26. governance
  27. growth
  28. harm
  29. human
  30. includes
  31. incorporates
  32. innovation
  33. invest
  34. investing
  35. investment
  36. investors
  37. juicy
  38. labor
  39. limiting
  40. making
  41. management
  42. market
  43. means
  44. measure
  45. metrics
  46. minimizing
  47. outcomes
  48. oversight
  49. people
  50. performance
  51. planet
  52. pollution
  53. process
  54. productive
  55. providing
  56. purpose
  57. relates
  58. resources
  59. rights
  60. risk
  61. rules
  62. sales
  63. sexy
  64. share
  65. social
  66. stuff
  67. supply
  68. sustainability
  69. sustainable
  70. today
  71. told
  72. tomorrow
  73. users
  74. valuation
  75. waste
  76. water