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Table of Contents: November 2024

Table of Contents: November 2024

Table of Contents: November 2024

Tue, 17 Dec 2024 04:15:30 +0000

Table of Contents: November 2024

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NBS’s monthly compilation of the latest business sustainability research prioritizes in-press articles, in order to highlight cutting-edge knowledge. The list draws from Financial Times Top 50 journals and other publications.

The post Table of Contents: November 2024 appeared first on Network for Business Sustainability (NBS).

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NBS’s monthly compilation of the latest business sustainability research prioritizes in-press articles, in order to highlight cutting-edge knowledge. The list draws from Financial Times Top 50 journals and other publications.

See all monthly Table of Contents.

Research for November 2024

Academy of Management Learning and Education

Academy of Management Review

Accounting Review

Administrative Science Quarterly

Business Ethics Quarterly

Contemporary Accounting Research

Econometrica

Human Resource Management

Journal of Applied Psychology

Journal of Business Venturing

Journal of Consumer Marketing

Journal of Economics and Management Strategy

Journal of Financial Economics

Journal of Industrial Ecology

Journal of Management

Journal of Management Studies

Journal of Operations Management

Journal of the Association of Environmental and Resource Economists

Management Science

See all monthly Table of Contents.

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December 2024: Network News

December 2024: Network News

December 2024: Network News

Tue, 17 Dec 2024 01:19:24 +0000

December 2024: Network News

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Impact Bonds & Climate Action Resources

The post December 2024: Network News appeared first on Network for Business Sustainability (NBS).

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Impact Bonds & Climate Action Resources

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Learn about regenerative finance and how businesses can tackle climate change.<!–


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Impact Bonds and the Possibilities of Regenerative Finance


A new impact bond improved local biodiversity and supported Indigenous rights. However, for impact at scale, the financial system needs serious reform. Learn about the potential impact of regenerative finance – and its limitations.

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Learn More

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Climate Change Knowledge Journey


The weather patterns on our planet are changing, influenced by human activities such as burning fossil fuels and wasteful industrial processes. But businesses can help. 

This new Knowledge Journey organizes our rich database of climate change content into an easy-to-navigate format. Learn why Earth is warming, and how businesses can stop climate change, reduce their risk, and ensure no one is left behind in the transition.

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Understand Climate Change + Business

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Opportunities and Announcements


Have an opportunity for the network? Share it with us


Events
Awards
Resources

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Connect with us


Facebook

Twitter

LinkedIn

YouTube

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The Network for Business Sustainability is a nonprofit connecting researchers and decision-makers to advance sustainability. Network News shares the latest insights to shape your sustainability thinking—and action. 

Have questions or feedback? We want to hear from you! Email us at info@nbs.net</a

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Impact Bonds and the Possibilities of Regenerative Finance

Impact Bonds and the Possibilities of Regenerative Finance

Impact Bonds and the Possibilities of Regenerative Finance

Thu, 05 Dec 2024 22:55:15 +0000

Impact Bonds and the Possibilities of Regenerative Finance

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A new impact bond improved local biodiversity and supported Indigenous rights. However, for impact at scale, the financial system needs serious reform.

The post Impact Bonds and the Possibilities of Regenerative Finance appeared first on Network for Business Sustainability (NBS).

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A new impact bond improved local biodiversity and supported Indigenous rights. However, for impact at scale, the financial system needs serious reform.

In 2018, I began working with the Deshkan Ziibiing (pronounced desh-kan-zee-bing) or the Chippewas of the Thames First Nation in Southwestern Ontario (Canada). With Carolinian Canada and other partners, including Verge Capital, Thames Talbot Land Trust and 3M, we created a financial instrument to support habitat restoration and biodiversity conservation in a biodiversity hotspot called the Carolinian zone. The work also supported Indigenous resurgence, a movement to recognize the land rights of Indigenous communities and the validity of their knowledge systems.

The financial instrument we created is called the Deshkan Ziibi Conservation Impact Bond, and in many ways, it has been wildly successful. For example, it helped to:

  • Unlock new funding for conservation and Indigenous resurgence.

  • Restore 160 hectares of habitat, including planting over 39,000 native plants.

  • Transform conservation practices in the Carolinian Zone to include more Indigenous perspectives.

  • Build trust and collaboration between local Indigenous and non-Indigenous partners.

However, the experience also confirmed our doubts about the current financial system. We now believe, more than ever, that to protect land and honour Indigenous rights at a large scale, we require significant changes in how society attributes and generates value. We need a fundamental shift in how we value all forms of life, moving from an extractive to a regenerative lens.

In this article, I will explain the Deshkan Ziibi Conservation Impact Bond and how it works. It is a useful model for investors, corporations, donors, and governments wanting to ensure their philanthropic and grant spending has a real impact. It is also a helpful tool for conservation organizations and Indigenous communities aiming to attract additional funding.

Yet, as with any form of impact investing, the bond’s potential impact under the current financial system will eventually be capped. That is because our financial system fails to adequately value biodiversity or the building of reciprocal relationships between Indigenous and non-Indigenous peoples.

What is an Impact Bond?

A bond is a financial instrument in which people lend money to a company, government, or other entity in exchange for a guaranteed rate of return.

An impact bond is similar, but the returns include some real impact. That impact can include things like boosting biodiversity, sequestering carbon, or improving health. In the case of an impact bond, quantifiable outcomes are usually agreed upon in advance.

Impact bonds require many different groups to work together, each playing a distinct role. These stakeholders include:

  • Investors: These funders provide the initial capital for the project and expect a financial return if the project is successful (i.e., the agreed upon “outcomes” are met).

  • Outcome Payers: These entities agree to repay investors once the project achieves its intended outcomes. Payers can include governments, foundations, individual donors, or corporations.

  • Service Providers: These organizations receive the initial investment and are responsible for implementing the project and achieving the desired outcomes.

  • Independent Evaluators: These individuals verify the achievement of agreed-upon outcomes, ensuring transparency and accountability.

How Impact Bonds Work - Network for Business Sustainability

Impact bonds are also known as pay-for-performance products. When the “outcomes” are achieved, investors are repaid their capital plus interest by outcome payers. However, if the outcomes are not met, the investor will not receive any interest on their initial capital and may forgo repayment of some or all of the principle. Investors take the financial risk in exchange for potential financial returns.

Outcome payers are only interested in the project’s outcomes. They agree to pay interest on the project’s cost, but in exchange, they only pay if their intended outcome is achieved.

Case Study: The Deshkan Ziibi Conservation Impact Bond (DZCIB)

Our research focused on a particular impact bond—the Deshkan Ziibi Conservation Impact Bond (DZCIB). The project was created using Community-Based Participatory Research, whereby my research team and I worked closely with Deshkan Ziibiing, also known as the Chippewas of the Thames First Nation, and Carolinian Canada. With the support of other partners, we created a bond to support habitat restoration and biodiversity conservation in a biodiversity hotspot—the Carolinian zone of Southwestern Ontario, Canada.

This bond pursued the Mi’kmaw principles of Two-Eyed Seeing/Etuaptmumk. Proposed by Mi’kmaw Elder Albert Marshall, Two-Eyed Seeing/Etuaptmumk advocates for a synergistic blend of two perspectives or ‘eyes:’ one Indigenous and one Western, each embedded in their ways of knowing. The Two-Eyed Seeing approach was critical to the bond’s ability to achieve its conservation goals. 80% of the planet’s remaining biodiversity is located on Indigenous lands, indicating that Indigenous land management practices have much to offer conservation efforts.

Historically, colonial governments globally have removed Indigenous communities from their land and stripped them of their culture. Centring Indigenous people and their knowledges in conservation not only supports cultural restoration, but also encourages reconnection to land and land stewardship. No regeneration can be achieved with reconciliation with Indigenous peoples.

How the Deshkan Ziibi Conservation Bond Worked

The Deshkan Ziibi Conservation Bond followed the four traditional steps of an Impact Bond:

  1. Investor provided upfront capital: Verge Capital, an impact investing company, provided a $300,000 grant as seed funding for the project.

  2. Funds were used for habitat restoration: The funds were allocated to partners like the Thames Talbot Land Trust and Deshkan Ziibiing to carry out restoration activities. Activities included planting native trees and plants, restoring wetlands, and managing invasive species.

  3. Outcome payer repaid the investor: 3M, a technology company, agreed to act as the first outcome payer. They committed to repay Verge Capital their initial investment plus a 3-5% return (the exact amount would be determined primarily by the average rate of return on the bond market). Other outcome payers eventually joined, including a non-profit and the government.

  4. Impact was assessed: The project’s outcomes were verified using metrics that reflect Indigenous and Western perspectives on land conservation.

Assessing Outcomes of the Deshkan Ziibi Conservation Bond

DCZIB outcomes were assessed across five metrics. In this case, the word “metric” is not a single quantitative measure. Rather, a metric describes a collection of related measures, each looking at relationships between Indigenous and non-Indigenous peoples and relationships between people and the land. The five metrics were:

  • Connecting Healthy Habitats: This metric assessed the project’s direct environmental impact. For example, it measured how many hectares of habitat were improved and how many native plants were planted.

  • Connecting Knowledge Through Circling and Learning: This metric focused on how successfully the project integrated traditional ecological knowledge with Western conservation science.

  • Connecting Opportunities: This metric assessed the socio-economic benefits created by the project, particularly for Indigenous communities. That included job creation, economic development, and Indigenous peoples’ participation in and benefits from conservation efforts.

  • Connecting Our Hearts and Minds: This metric captured the project’s impact on people’s attitudes and perceptions. For instance, it investigated whether participants had a deeper understanding and appreciation for the interconnectedness of human and non-human communities and a sense of responsibility for the well-being of the land.

  • Connecting Our Bodies: This metric explored the project’s impact on human health and well-being. That included assessing opportunities for people to spend time in nature, which has physical and mental health benefits.

Outcomes of the Deshkan Ziibi Conservation Bond - Network for Business Sustainability

To learn more about the Deshkan Ziiibi Conservation Impact bond, you can look at the academic paper, report, and story map.

Regenerative Finance: The Path Forward

While the DZCIB has had very positive local impacts, impact bonds alone cannot address the fundamental problems in the current financial system, which is not set up to enable positive impact at scale.

The financial system has an extractive and exploitative relationship with land. Land—including plants, animals, water, and minerals—is seen as a natural resource to be exploited for people’s short-term financial gain. Pursuing only profit results in practices like deforestation, mining, and industrial agriculture, which damage ecosystems and threaten biodiversity.

In addition to innovative financial instruments, like the DZCIB, we also need changes to the global financial system. We need policy that requires us to pay the financial cost of the harm caused by pollution and climate change. We need policy that gives intentional financial value to biodiversity, ecosystem services, and Indigenous cultural restoration. Only when the larger financial system begins to value these things will we move more seamlessly toward them.

More About Sustainable Finance at Ivey

I lead Ivey’s Sustainable Finance Lab, where we use different forms of regenerative capital to protect biodiversity and pursue truth and reconciliation with Indigenous communities. We are currently developing a region-wide impact bond, like the DZCIB. We are also investigating the role capital markets can play in economic reconciliation with First Nations and developing new financial products targeting regenerative agriculture.

If you want to know more about the Ivey Sustainable Finance Lab, visit our website or contact me: Dr. Diane-Laure Arjaliès (darjalies@ivey.ca).

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November 2024: Researcher Update

November 2024: Researcher Update

November 2024: Researcher Update

Sun, 01 Dec 2024 01:18:03 +0000

November 2024: Researcher Update

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Researcher Update: Indigenous Management and October Table of Contents

The post November 2024: Researcher Update appeared first on Network for Business Sustainability (NBS).

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Researcher Update: Indigenous Management and October Table of Contents

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Weaving Indigenous Approaches into Management and Organization


After decades of marginalization, a new movement is nurturing Indigenous scholars and research in Business Schools.

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Learn More

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October 2024 Table of Contents


NBS’s monthly compilation of the latest business sustainability research prioritizes in-press articles, in order to highlight cutting-edge knowledge. The list draws from Financial Times Top 50 journals and other publications.

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Review Articles

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Opportunities and Announcements


Please share your information about opportunities related to sustainability scholarship on our Opportunities page.

 
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The Network for Business Sustainability is a nonprofit connecting researchers and business leaders to advance sustainability. 

This newsletter shares the latest insights to shape your sustainability scholarship.

Consider signing up for NBS’s newsletter featuring knowledge at the cutting edge of sustainable practice.

Have questions or feedback? We want to hear from you! Email us at info@nbs.net</a

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Weaving Indigenous Approaches into Management and Organization

Weaving Indigenous Approaches into Management and Organization

Weaving Indigenous Approaches into Management and Organization

Wed, 27 Nov 2024 17:28:29 +0000

Weaving Indigenous Approaches into Management and Organization

<![CDATA[

After decades of marginalization, a new movement is nurturing Indigenous scholars and research in Business Schools.

The post Weaving Indigenous Approaches into Management and Organization appeared first on Network for Business Sustainability (NBS).

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<![CDATA[

After decades of marginalization, a new movement is nurturing Indigenous scholars and research in Business Schools.

Banner image art by Elle Simpson.

For many years, Indigenous ways of knowing were not recognized or welcome in business school curricula or research. Today, the landscape is starting to change. There have been global calls to decolonize management research and education. In Canada, for example, the Government’s Truth and Reconciliation Commission (TRC 2015) now advocates for Indigenous perspectives in Canadian business life. Still, despite these developments, academics encounter significant barriers to incorporating Indigenous approaches in their research and teaching. Universities have a long colonial history, and their approach to knowledge is built upon Eurocentric concepts of what it means to know something, who has rights to claim knowledge, and how knowledge is shared.

A new kind of conference, the International Academy of Research in Indigenous Management and Organizational Studies (or IARIMOS), is seeking to change this from the ground up, by strengthening Indigenous scholars and their allies.

Launched in 2022, IARIMOS is an annual, three-day event with keynote presentations, panel discussions, and workshops. It brings together prominent Indigenous researchers to mentor and guide emerging scholars. The first two IARIMOS conferences took place  at Telfer School of Management in Canada. The 2025 conference will take place at the University of Melbourne, Australia, hosted by Dr. Michelle Evans and the Dilin Duwa Center.

In a world where colonial approaches to management research still dominate, IARIMOS is a safe space that supports Indigenous scholars in business schools. It enables them to weave Indigenous knowledges into management studies and to be recognized and celebrated for their contributions. As the field of Indigenous research gains popularity among non-Indigenous scholars, IARIMOS also aims to inspire young scholars to value and honour Indigenous practices and communities, and to conduct their research in a respectful and ethical manner.

What Makes IARIMOS Special?

There are four ways that IARIMOS’s structure reflects Indigenous knowledge to support Indigenous scholars and allies:

Four factors that make IARIMOS special - Network for Business Sustainability

Emphasising Relationships

IARIMOS is designed to enable connection and relationship building among attendees. Attendance numbers are kept small enough to enable everybody to get to know everybody else on a personal level. The meeting begins and ends with attendees seated in a circle, where they are guided by elders in a ceremony.  Every participant introduces themselves to the circle as a person, including their heritage, or other aspects of their background, and what they hope to share and gain from the experience.  Everyone’s perspective is of equal status in the circle. There is no top table, and no ‘cheap seats’ in the back.

Nurturing New Scholars

Only early-career researchers present their work at IARIMOS. The role of senior scholars is to support, encourage, mentor, and learn from younger scholars, particularly Indigenous scholars. This circumvents the typical practices of conventional management conferences where the younger ones look up to their seniors, and (some) seniors look down on those ‘coming up’. At IARIMOS, the older scholars support the younger Indigenous scholars and their allies, guiding them up and learning from diverse Indigenous traditions.

Junior scholars attend by responding to a call for papers. Senior scholars, however, are invited into the circle based on their academic work and their allyship qualities. The network of mentors includes both Indigenous and ally researchers, most whom also have a history of supporting one another. Their links through IARIMOS have made these bonds stronger.

People hugging at the IARIMOS conference
People embrace in a circle at the IARIMOS 2024 conference

Supportive Feedback Based on Individual Need

Papers submitted to IARIMOS are not blind-reviewed. They are assessed by a committee made up of Indigenous and non-Indigenous ally scholars from different geographies, ages, and backgrounds. The committee carefully considers the scholars’ development, personal, academic and financial needs, and what the best way to review their paper would be given ‘where they are at.’   

For example, if a non-Indigenous scholar new to the field of Indigenous research joins IARIMOS, the assigned mentor and the supportive research circle help guide the selection of appropriate methodologies – here, an important consideration is a benefit to the community. For scholars who are further into their research, mentor feedback could address more nuanced elements of research, such as the cultural relevance of a specific methodology.

A paper presented at IARIMOS by John Huria, a researcher from Aotearoa (New Zealand), looked at how blind reviewing can be a poor fit for Indigenous knowledge development (and other knowledge development, too). The pretence of disconnected anonymity comes at a cost, particularly for young scholars. They often get cold, unempathetic and dispiriting advice, in unhelpful ways, at the wrong time, and delivered in ways that are not necessarily suited to their or the field’s development.

Diverse Communication Formats

Attendees are encouraged to present knowledge in many different ways. At IARIMOS, the medium depends upon the best relationship with the nature of the knowledge and the message it conveys. For example, a particularly insightful presentation at IARIMOS 2024 was offered in the form of a poem, and an introductory address by an elder was responded to in song. Stories, symbolism and metaphors connected to the land were also invoked frequently.

Benefits of IARIMOS

IARIMOS unites Indigenous Peoples from around the globe and their allies. It aims to foster an environment where participants collectively learn about and celebrate the diversity of Indigenous knowledges with care and mutual respect. There are no registration fees, and presenters, especially those who are Indigenous or from the Global South, are provided with a small stipend to assist with travel costs.  Spaces and budget are limited, and the committee does its best to accommodate as many presenters as possible. If you’re wondering if you and your research will find your place at IARIMOS, organizers invite you to email them. Their contact details are below.

The conference offers many benefits for Indigenous scholars, allies, and society.

Benefits of IARIMOS - Network for Business Sustainability

Benefits for Indigenous Scholars

IARIMOS’s main objective is to support Indigenous scholars, especially those just beginning their journey as academics, encouraging them to bring their knowledge into management and organization studies. Most Indigenous scholars have experienced invalidation in the workplace or at conferences when their views don’t align with colonial ways of thinking. For example, Dr. Robin Wall Kimmerer often tells the story of her first day at forestry school. Her advisor asked why she wanted to study botany. She shared that she “wanted to learn why asters and goldenrod look so beautiful together,” but she was told that her question was not science. IARIMOS respects, embraces, and supports all Indigenous approaches to knowledge development.

Benefits for allies

IARIMOS also welcomes non-Indigenous allies. Joining the IARIMOS circle can help you become a better ally and a better researcher.  Indigenous scholars can help you see how Indigenous ways of knowing can be more deeply and meaningfully embodied in your work. Bring your open heart and humility.

Benefits for society

Indigenous knowledge systems and practices offer the epistemological shift needed to achieve a sustainable world. These knowledges and practices are rooted in a relational understanding of nature, meaning they arise from the understanding that all beings are part of an interconnected web of relationships, where each has a role and responsibility, and the well-being of all parts is linked. People interested in sustainable approaches to management and organization can learn much from Indigenous world views and methods.

More information about IARIMOS

IARIMOS was founded and is led by Professor Ana Maria Peredo, Tier 1 Canada Research Chair at the Telfer School of Management, in collaboration with both Indigenous scholars, and non-Indigenous scholars who are committed allies from around the globe. Its inaugural conferences were hosted at the Telfer School in Ottawa, Canada.  Planning is now underway for the third iteration of the conference, to take place in Melbourne, Australia, in 2025, hosted by Dr. Michelle Evans and the Dilin Duwa Center.

In many ways, IARIMOS is more akin to a movement than a conference – or a growing ‘circle of fire’ as Professor Ella Henry, one of the conference organizers in 2024, has named it. The last two years has brought a surge of interest in IARIMOS and the community that supports it, including in major journals in our field and the broader management academic community. 

If you are interested in finding out more about IARIMOS and Indigenous approaches to management, please watch this video or visit our website.  On our website, you can read about the book being created by the IARIMOS community titled Indigenous Management: Knowledges and Frameworks.

If you have any questions about IARIMOS, or how we can support your work, please don’t hesitate to reach out:

Recognizing IARIMOS Elders and Organizers

IARIMOS has been guided and blessed by Elders: Elder Patricia Soulis, Jane Chartrand, Malcolm Soulis, Rongo Wetere, and Marcia Krawll.

Many colleagues directly or indirectly and generously support IARIMOS. Special thanks go out to the conference organizing teams.

  • IARIMOS Academic Committee 2023:  Ana Maria Peredo, Irene Henriquez, Peter Moroz, Rick Colbourne, Robert Anderson, Leo Paul Dana

  • IARIMOS Academic Committee 2024: Ana Maria Peredo, Stephen Cummings, Ella Henry,  Peter Moroz, Robert Anderson,  Juan Francisco Chavez, Saheli Nath

  • Special Tasks for IARIMOS: Sandra Schillo, Murdith McLean, Noora Kassab, Jenna Bryson, Jesse Pirini, Joe Gladstone, Stephanie Daher, Israr Qureshi and Oana Branzei

This work has been possible thanks to the Canada Research Chair Program, Social Sciences and Humanities Council of Canada, University of Ottawa, Journal of Business Ethics, Organization, Journal of Business and Society, SAGE, AUT University, Smith School of Business, Te Herenga Waka – Victoria University of Wellington, Te Kahu o Te Ao – The Atom Innovation Space, University of Sydney, Hill and Levene Schools of Business, Schulich School of Business and Sprott School of Business, and many other contributors.

All these generations working together have made the last two IARIMOS conferences spectacular! IARIMOS 2025 in Melbourne will continue this tradition.

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Table of Contents: October 2024

Table of Contents: October 2024

Table of Contents: October 2024

Fri, 15 Nov 2024 23:49:17 +0000

Table of Contents: October 2024

<![CDATA[

NBS’s monthly compilation of the latest business sustainability research prioritizes in-press articles, in order to highlight cutting-edge knowledge. The list draws from Financial Times Top 50 journals and other publications.

The post Table of Contents: October 2024 appeared first on Network for Business Sustainability (NBS).

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<![CDATA[

NBS’s monthly compilation of the latest business sustainability research prioritizes in-press articles, in order to highlight cutting-edge knowledge. The list draws from Financial Times Top 50 journals and other publications.

See all monthly Table of Contents.

Research for October 2024

Academy of Management Discoveries

Entrepreneurship Theory and Practice

Harvard Business Review

Human Relations

Information Systems Research

Journal of Business Ethics

Journal of Consumer Psychology

Journal of Consumer Research

Journal of Environmental Economics and Management

Journal of Finance

Journal of Financial and Qualitative Analysis

Journal of International Business Studies

MIS Quarterly

Operations Research

Organization and Environment

Organization Science

Organization Studies

Sloan Management Journal

See all monthly Table of Contents.

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October 2024: Researcher Update

October 2024: Researcher Update

October 2024: Researcher Update

Fri, 01 Nov 2024 01:17:58 +0000

October 2024: Researcher Update

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Researcher Update: August Table of Contents

The post October 2024: Researcher Update appeared first on Network for Business Sustainability (NBS).

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96

Researcher Update: Table of Contents

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Find September’s research summary and current opportunities<!–


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September 2024 Table of Contents

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NBS’s monthly compilation of the latest business sustainability research prioritizes in-press articles, in order to highlight cutting-edge knowledge. The list draws from Financial Times Top 50 journals and other publications.

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Review Articles

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Opportunities and Announcements


Please share your information about opportunities related to sustainability scholarship on our Opportunities page.

 
Events

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The Network for Business Sustainability is a nonprofit connecting researchers and business leaders to advance sustainability. 

This newsletter shares the latest insights to shape your sustainability scholarship.

Consider signing up for NBS’s newsletter featuring knowledge at the cutting edge of sustainable practice.

Have questions or feedback? We want to hear from you! Email us at info@nbs.net</a

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0

October 2024: Network News

October 2024: Network News

October 2024: Network News

Sun, 20 Oct 2024 22:57:36 +0000

October 2024: Network News

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New Ways to Learn

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96

New Ways to Learn

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We have new options for learning the fundamentals of business sustainability.<!–


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Learn Sustainability Basics


Want to understand core business sustainability topics? Read our series, “The Basics.”
It includes 23 articles with essential knowledge on topics from corporate sustainability, to sustainable finance, to degrowth. All articles are written or reviewed by an expert in the field.

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Learn the Basics

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Introducing: NBS Knowledge Journeys


NBS has reorganized some of its content so you can find information more easily. Our “Knowledge Journeys” will help you understand the details of core sustainability topics, by finding NBS articles that cover key aspects of the topic.

Find our first two knowledge journeys below! 

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Social Justice Knowledge Journey


All people have equal rights and should have equal access to opportunities. That’s the principle of social justice. In this Knowledge Journey, you’ll find social justice definitions, tips for advancing social justice in business (and why doing so is good for business), case studies, and more!

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Understand Social Justice in Business

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Circular Economy Knowledge Journey


What if “waste” could be a resource? That’s the vision of the “Circular Economy.” In this Knowledge Journey, you’ll find circular economy definitions, case studies, advice on overcoming challenges, and circular economy nuances for different corporate contexts.

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Understand Circular Economy

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Opportunities and Announcements


Have an opportunity for the network? Share it with us


Events
Positions

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Connect with us


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The Network for Business Sustainability is a nonprofit connecting researchers and decision-makers to advance sustainability. Network News shares the latest insights to shape your sustainability thinking—and action. 

Have questions or feedback? We want to hear from you! Email us at info@nbs.net</a

The post October 2024: Network News appeared first on Network for Business Sustainability (NBS).

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Table of Contents: September 2024

Table of Contents: September 2024

Table of Contents: September 2024

Tue, 15 Oct 2024 16:42:23 +0000

Table of Contents: September 2024

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NBS’s monthly compilation of the latest business sustainability research prioritizes in-press articles, in order to highlight cutting-edge knowledge. The list draws from Financial Times Top 50 journals and other publications.

The post Table of Contents: September 2024 appeared first on Network for Business Sustainability (NBS).

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NBS’s monthly compilation of the latest business sustainability research prioritizes in-press articles, in order to highlight cutting-edge knowledge. The list draws from Financial Times Top 50 journals and other publications.

See all monthly Table of Contents.

Research for September 2024

Academy of Management Journal

Academy of Management Perspectives

American Economic Review

Business and Society

Ecological Economics

Journal of Accounting Research

Journal of Marketing

Journal of Political Economy

Journal of the Academy of Market Science

Manufacturing and Service Operations Management

Frontiers in Operations: The Confidence Trap in Operations Management Practices – Anatomy of Man-Made Disasters. Akhil Bhardwaj, Henk Akkermans.

Marketing Science

Organizational Behaviour and Human Decision Processes

Production and Operations Management

Quarterly Journal of Economics

Review of Accounting Studies

Review of Economic Studies

Review of Finance

Review of Financial Studies

Strategic Entrepreneurship Journal

Strategic Management Journal

See all monthly Table of Contents.

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Coalitions Can Help Institutional Investors Improve Their Climate Impact

Coalitions Can Help Institutional Investors Improve Their Climate Impact

Coalitions Can Help Institutional Investors Improve Their Climate Impact

Sat, 05 Oct 2024 23:56:33 +0000

Coalitions Can Help Institutional Investors Improve Their Climate Impact

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When a firm loses money because of climate change, so does its investors. New research shows how investors can lower climate risk and improve impact.

The post Coalitions Can Help Institutional Investors Improve Their Climate Impact appeared first on Network for Business Sustainability (NBS).

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When a firm loses money because of climate change, so does its investors. New research shows how investors can lower climate risk and improve impact.

Climate change is a risk for investors because it impacts the companies in which they invest. Climate change poses both physical risk, such as storm damage to facilities and equipment, and regulatory risk, like the trend towards government-mandated carbon disclosure.

Investors can lower their impact by pushing publicly traded companies to lower greenhouse gas emissions, adapt to climate change, and report on their carbon emissions.

Investors wanting to drive climate action should consider forming a coalition with other investors. That’s because size matters when investors approach a target company’s leadership team. The more money you or your coalition manage, the more important you will appear to leaders at the target company.

Corporate leaders might not give you the time of day if you’re an individual with $1 million. But an institutional investor, like Sunlife Financial, controls nearly $1.5 trillion of other people’s money and will have more perceived legitimacy. Similarly, if 10 institutional investors form a coalition that controls $10 trillion in assets, they would become awfully hard for an investment-seeking company to ignore.

Investor Influence Grows with Assets Managed
The more money you invest, the more likely it is that a company will consider your climate action requests.

Individual Investor: a single person might manage $1 million of their own, personal investments.
Institutional investor: an institutional investor is a company that invests other people's money. It might manage $1.5 trillion dollars in investments.
Investor coalition: institutional investors can work together in a coalition. Collectively, a coalition might manage $10+ trillion in investments.

New Research On Best Practices for Shareholder Coalitions

The Principles for Responsible Investment (PRI), sponsored by the United Nations, recognizes the power of investor coalitions – they asked us to research the question: “Which factors make investor coalitions more successful in driving climate action?” The research team also included Rieneke Slager (University of Groningen), Santi Furnari (Bayes Business School), and Mikael Homanen (formerly at PRI).

Together, we studied 553 coalition engagements from 2008 to 2019, where the target companies spanned 35 countries. We also interviewed 88 investors, target firm staff, and PRI staff. This article summarizes what we learned.

If you work for an institutional investor and you’re worried about the impact climate change will have on your work, keep reading. You’ll learn how to get involved in a climate-focused coalition and which factors will make your coalition more successful.

Which Company to Target

Many institutional investors work with an ESG data provider to assess climate risk in their portfolio. This can help identify holdings in companies with high emissions or low-quality carbon disclosure.  These poor performers might be good targets for engagement, although not all companies will be open to change.

As you figure out exactly which company to target, consider how receptive each company might be to your request. Receptivity is usually a function of the firm’s willingness to change and its capability for change. 

You can get clues about willingness to change by looking at data on the company’s past environmental performance. If it has a track record good performance, the chances are better that your climate request will align with the company’s existing culture and be an easier ‘yes.’ Capacity for change refers the company’s ability to resource the change you’re requesting. Larger companies, with higher profits, will have an easier time finding the resources to support your request.

But that’s not to say there’s no value in engaging less receptive target firms, such as fossil fuel companies with an unimpressive record of climate action. Often, unreceptive companies contribute heavily to climate change and climate risk and are the least likely to change on their own. Your success rate here may be lower, but the victories are more important.

How to Start a Shareholder Coalition

Once you’ve decided on a target company, and you’re ready to start a coalition, there are a few options for getting started.

  1. Talk to investors you already know. Ask if they are interested in engaging the target company collectively.

  2. Look through lists of major shareholders at the target company. Get in touch with those investors.

  3. Reach out to a convening organization, like PRI, who can help you build a coalition. Research shows there can benefits to working with an intermediary organization to build and coordinate a coalition. PRI has a collaboration platform investors can use to post a proposed collaborative engagement. Other organizations offer similar support, including Climate Action100+, Ceres, ShareAction, Australasian Centre for Corporate Responsibility, Interfaith Center on Corporate Responsibility, and many more.

How to Structure a Shareholder Coalition

Coalition Attributes That Make Companies More Likely to Listen

A coalition can include anywhere from two to 20+ institutional investors from anywhere in the world. The coalition usually nominates one or two of its member organizations to lead the process of engaging with the target company. Other members may participate in a lighter touch way.

Our review of the existing research shows that there are four coalition attributes that help make engagements more successful on average: size, local representation, experience, and shares held in the company. Below is more detail on each.

How to Structure a Shareholder Coalition for Climate Action
Bigger is better: the more money your coalition controls, the more likely the target company is to take you seriously.
Include local representation: one of the lead organizations should be from the same country as the target company to enable smooth communication and awareness of cultural norms.
Have experienced members: the team engaging with the target company should have technical expertise on climate solutions, shareholder engagement experience, and seniority.
Have a stake in the target company: seek coalition members who own the target company's stock. This can help the company's leadership see you as an important stakeholder.

Bigger is Better

The size of your coalition is usually viewed as the most important factor in success. The more money your coalition controls, the more likely it is that a company will take your requests seriously. For instance, companies will take more notice of a coalition with $1 trillion in assets compared to another with only $2-3 billion.

If you can’t pull together a team with that many assets, however, don’t worry. It’s not absolutely required. You can use the other attributes below to make your coalition more compelling.

Include Local Representation

Often, having at least one lead organization from the same country as the target company’s headquarters can be useful. It will ensure that coalition members share the same language and cultural norms as staff at the target company, making communication more effective. In Japan, for example, there are strong norms around hierarchy and respectful behaviour. Someone socialized in a Western country may not be familiar with these norms, and unintentionally offend target company staff.

Have Experienced Members

Once the lead organizations are selected, they nominate their staff to participate in an engagement team. It’s particularly important for the lead engagers to include senior, experienced people (though senior members can certainly mentor junior staff). That experience should include:

  • Technical expertise: If the coalition is asking an oil company to expand renewable energy production, for example, the engagement team should ideally include someone with technical expertise in both oil and renewables.

  • Shareholder engagement experience: Navigating a target company is tough. Investors must figure out who to talk to and what to say in different contexts – skills that come with practice. Coalitions should include people with past shareholder engagement experience.

  • Seniority: If the coalition is talking to the target company’s CEO or the board of directors, sending someone with the credibility to negotiate with senior leaders can boost receptivity.

Have a Stake in the Target Company

Another factor that can tilt coalitions towards success is the shareholding stake coalition members have in the target company. Do members hold a large percentage of the company’s total stock? If so, leaders at the target company may see your coalition as a more important stakeholder.

You May Not Need All Four Attributes

If you’re engaging a firm that won’t be receptive to change, it’s best to ensure your coalition has as many of the attributes above as possible. Our research shows, however, that you don’t always need that level of perfection. If the target company is profitable and has a strong environmental track record, it won’t be as hard to motivate them to make climate-friendly changes. In these cases, having a large coalition is important, but it’s still possible to be convincing if your coalition is missing either local representation or experience.

This nuance makes shareholder engagement more accessible for many investors. For example, imagine if your target firm is in Japan, but you don’t have a relationship with any Japanese investors.  That would make it harder to have local representation. But if the target firm is receptive, you can probably work with the experienced European investors you already know to effectively make the case for change.

Ground Your Requests in the Target Company’s Context

Once your coalition has the right members in place, you’ve got a solid foundation. But how you engage with the target company is also critical.

To convince a target company to tackle climate challenges, investor coalitions must first understand how the company works. Then, they can then make requests that are feasible within the company’s financial, operational, political, and cultural context.

For example, if the coalition wants a company to adopt a new emissions reduction technology, they could start by reaching out to the company’s investor relations department.  Investor relations might share insights on how the company is governed, and refer them to the Chief Technology Officer (CTO). Conversations with the CTO might reveal how technology decisions are made, barriers to change, and which technologies could be feasible, or even beneficial to the company.  From there, the coalition or the CTO (encouraged by the coalition) could pitch a feasible technology solution to the board, maybe even pointing to a relevant government grant that would cover some of the cost. If the board agrees, the company could find a consultancy to help with implementation.

Getting to know the company, and pitching a well-researched, feasible idea will make your request an easier ‘yes’ than approaching the board directly with an unvetted idea.

Shareholder Engagement Benefits Investors

When institutional investors form coalitions and work with companies to advance climate action, there are many benefits.

Hopefully, the target company will take the recommended action, which can lower risk for investors. Often, this is also a win for the target company, whose climate impacts will also be reduced. Company leaders may have been unaware of their vulnerability to climate change or of how to address these risks effectively.

Success is far from guaranteed, but if the target company refuses to take action, all is not lost. The engagement process itself gives investors deeper knowledge of the company and the ability to divest if the risk is too high. It may also give investors the confidence and legitimacy needed for more radical action, such as lobbying policy makers to advance change through regulation.

The post Coalitions Can Help Institutional Investors Improve Their Climate Impact appeared first on Network for Business Sustainability (NBS).

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