PLUTUS PULSE #101X NEWSMAKER ISSUE #4 AUGUST 2024
Thank you to all subscribers and new readers
by John Martin CEO, Plutus
Hello again! We're thrilled to have you with us for our 4th monthly company newsmaker!
Your continued support means everything to us. When we launched this newsmaker, our goal was to create a space where we could connect with you, share our journey, and keep you informed about all the exciting developments at Plutus.
However, it is not only about us, as we are always wanting to hear from you!
Please enjoy our 4th issue.
The online version of our complete August Newsmaker is here:
The Green Economy data gap: Regulators need to mandate climate reporting
2022 was a challenging year for investors looking to capitalise on the green transition.
2023 has seen political headwinds that are still unfolding.
Energy security concerns, rising inflation and an underperforming global equity market have abruptly ended a decade-long bull run in green stocks, which has delivered a compound annual growth rate of 14% since 2010.
By the end of November, the FTSE Environmental Opportunities Index had fallen 18.9% year-to-date, in contrast to the FTSE All-Share, which was up by 1.8% over the same period.
So, does this mean that the rising tide of ESG is abating and we are seeing a slowing interest in sustainable stocks and assets?
Not necessarily.
If you look beneath the headline figures you can see that the total value of green revenues, that is revenues generated from sustainable products and services, has been largely unaffected by the market turbulence, declining by just 2% between 2021 and 2022 to $4.8 trillion.
Despite the unprecedented rise in wholesale energy prices, the green economy is almost $2 trillion larger than the global oil and gas sector and now accounts for 9% of global market cap.
Please read the article in the full online version of our Newsmaker here:
Is Your Strategy a Beetle or a Spider? The Importance of Clarity in Business
In the world of business strategy, clarity is paramount. Yet, many organisations find themselves grappling with strategies that are more confusing than illuminating. This begs the question: Is your strategy a beetle or a spider?
A beetle strategy is rigid, enclosed, and often opaque. Like a beetle's hard shell, it may protect the core ideas but can be difficult to adapt or understand from the outside. In contrast, a spider strategy is transparent, flexible, and interconnected.
Like a spider's web, it clearly shows the connections between different elements and can be easily adjusted.
Clear, spider-like strategies offer several advantages:
1. Easy communication across all levels of the organisation
2. Faster adaptation to market changes
3. Better alignment of resources and efforts
4. Increased stakeholders buy-in and understanding
To transform a beetle strategy into a spider strategy:
1. Simplify complex concepts
2. Visualise connections between goals and actions
3. Regularly review and adjust as needed
4. Encourage open discussion and feedback
In today's fast-paced business environment, a clear and adaptable strategy is not just beneficial—it's critical for success.
By ensuring your strategy resembles a spider's web rather than a beetle's shell, you can foster better understanding, alignment, and execution throughout your organisation.
Renewable Energy is charging ahead!
Humanity is at a crossroads in choosing the way we will power our future.
Depending on what electricity infrastructure we build now, we could lock in still more decades of planet-warming emissions, or we could lay a solid foundation for a clean energy future and stave off the climate emergency’s worst effects.
The choice is an urgent one because the window is quickly closing on our ability to meet the goals set during COP and other events.
The green economy needs to become substantially larger to achieve a net-zero climate target, growing from around 7% of the global economy in 2021, to between 16-25% by 2050.
Please read the article in the full online version of our Newsmaker here:
Regulatory Corner - ESG Ratings – a myth of truth?
The differing treatment of ESG ratings perspective highlights several realities about the ESG rating industry: first, the fact that ESG ratings providers use different ranking methodologies often results in assigning divergent rankings to the same company.
Second, lumping all of "E" and "S" together—or, at times, all of the different issues within each of these categories—can obscure the reason for a particular company’s ESG rating.
The at times low correlation among ranking scores, the lack of granular information as to the basis of the rating, and, more generally, concerns around the transparency of ratings processes have led some to question the value, or how to best make use, of ESG ratings.
Please read the article in the full online version of our Newsmaker here:
The Green Zone
Welcome to our monthly green economy page, keeping you up to date on the latest trends and developments in sustainable finance and investing.
While sustainable investing in the Green Economy presents promising opportunities, it's important for investors to conduct thorough research and consider their risk tolerance and investment goals.
As this field continues to evolve, staying informed about technological developments, policy changes, and market trends will be crucial for making informed investment decisions.
Current market trends and strategies are as follows:
Policy support: Many governments are implementing policies to support the transition to a greener economy, creating opportunities for investors.
Technological advancements: Innovations in areas like energy storage, carbon capture, and sustainable materials are opening new investment avenues.
ESG integration: Environmental, Social, and Governance (ESG) factors are increasingly being incorporated into investment decision-making processes.
Green bonds and sustainability-linked bonds: The fixed income market for green projects is expanding rapidly.
Transition finance: Investing in companies transitioning from carbon-intensive operations to more sustainable business models.
Impact measurement: Growing emphasis on quantifying and reporting the environmental impact of investments.
Risk considerations: Investors need to be aware of potential "greenwashing" and carefully assess the true environmental impact of their investments.
Long-term perspective: Many green investments may require patience, as the full benefits and returns may take time to materialize.
Regulatory landscape: Evolving regulations and disclosure requirements are shaping the sustainable investing landscape.
Market growth: The green economy sector is expected to continue expanding, potentially offering attractive long-term investment opportunities.
Next month’s Green Zone Newsmaker will focus on Electric Vehicles (EV’s), their future trends, developments and whether to buy now, or later?
Plutus is a consultancy like no other; we are people driven, all with a shared vision to create positive outcomes for our clients, partners, and ecosystems alike.
Our Community Page - What makes Plutus different?
Communities and People are at the heart of everything we do.
Please read our complete online Newsmaker here: