The Climate Change Challenge for Institutional Investors

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Climate change poses a wide-ranging danger to the entire global economy. As such, even the most diversified investors cannot ignore the risks of climate change. Leading long-term focused investors, including the California Public Employees’ Retirement System (CalPERS), have taken decisive action to wield their economic influence in support of climate mitigation efforts. To date these have stopped short of divesting from fossil fuels, though the fund should re-consider divestment in light of the fiduciary risk that policy changes might pose to the fossil fuel industry.

The NIKE Model: Garbage In, Sneakers Out

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After a crippling onslaught of bad press regarding poor working conditions within its factories and negative environmental impacts in the late 1990s, NIKE, one of the world’s largest suppliers of athletic shoes and apparel, dramatically shifted course. While NIKE is now widely considered a global leader in sustainable innovation, is its sustainability model incorporating all of the relevant inputs?