It no longer makes sense to make a fetish of blindly pursuing GDP growth, without ever taking into account what actually constitutes that growth. What we ought to do as a people is to focus instead on growing Ghana's nascent green economy - to enable our country meet as many of the 17 UN Sustainable Development Goals (UN SDGs) as is practicable by 2030.
Luckily, the BlackRock Group's legendary founder, Larry Finks - a far more credible global business figure than an old fool and ignoramus such as myself - has now more or less taken the same sustainability stance too.
A fortnight ago, when he issued a letter in which he demanded corporate social responsibility in return for the support of his company - which manages around $6 trillion in assets - he shook the global corporate world.
One hopes and prays that our nation's so-called "economic management team" - made up of highly-intelligent world-class individuals - will begin to see the folly of continuing with an economic paradigm that permits business entities to destroy the quality of life of future generations of our people, in pursuit of short-term profits: destroying Ghana's natural heritage; harming the health of Ghanaians; and impacting their quality of life negatively in the process.
The question is: If gold mining companies are destroying our forests, poisoning streams, rivers, groundwater sources and soils across vast swathes of rural Ghana - even as tens of billions of dollars of gold is regularly smuggled outside Ghana's shores - why, for example, do we not ban the use of excavators by small-scale gold mining companies and leave most of our gold deposits in the ground instead?
If Thailand earned U.S.$72 billion in 2016 from the 31 million vistors it hosted, would we not similarly benefit from a tourism sector anchored on the incredible and wondrous beauty of rural Ghana - the custodians of our nation's natural heritage and guardians of our cultural heritage: generating jobs galore for our younger generations and wealth that remains in Ghana?
To inspire our much-talented younger generations, as well as Ghana's vice president and our current minister of finance, we have culled an article from Climate Home News entitled: "We have to change capitalism’ to beat climate change, says world’s biggest asset manager". One hopes they will see that it is imperative that we green our national economy as quickly as practicable.
Please read on:
‘We have to change capitalism’ to beat climate change, says world’s biggest asset manager
By Climate Home News on 25 January 2018
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Climate Home News
Capitalism must change to avert climate change, according to the vice-chair of the world’s largest asset manager, Blackrock.
Two weeks ago, Blackrock boss Larry Fink shook the corporate world with a letter demanding social responsibility in return for the support of his company, which manages around $6 trillion in assets.
On Wednesday at the annual World Economic Forum in Davos, Philipp Hildebrand expanded on that theme in a discussion of “fiduciary duty” – the responsibility to make clients the best return on their investments.
The concept was “evolving” to show failure to factor in environmental, social and governance factors would be a breach, he said, calling on academics to look more deeply at the issue. The European Commission recently launched a public consultation calling for contributions from the financial world.
“We will hopefully demonstrate that at a minimum there is not a negative trade-off and there may even be better performance,” said Hildebrand.
That would mean funds like Blackrock could become duty-bound to consider environmental risks such as climate change while making investments. It would create a dramatic shift, he said, but warned it would take time.
“We have to be realistic, we also have an enterprise to run, we have shareholders, this is a complicated story. Nobody is served by reducing this to very simple, fast things that we have to do immediately.
We have to change capitalism. This is really what’s at stake here. And frankly we need a new contract between companies, investors and governments,” said Hildebrand.
Former US president Al Gore, who was on the panel with the Blackrock executive, agreed that the field of research was still evolving.
But he said: “In 26 sectors of the economy, the vast majority of them, the companies that integrate ESG (environmental, social and governance) into their business plans perform better.”
He added: “For many years investors and asset managers have said ‘well I would like to invest with attention to these things, but my fiduciary duty to my clients keeps me from doing it’.
The revolutionary change… is that now it may be becoming clear that if you do not integrate these factors into your investing, you’re violating your fiduciary responsibilities.”
Blackrock’s activist rhetoric on climate change and sustainability is not new. In 2016, Fink called on companies to consider climate risk.
Last year, Blackrock hired Brian Deese, a former senior advisor to president Barack Obama, to head up its $195 billion Sustainable Investing group. Deese was a key advisor to the president on climate and part of the US team that negotiated the Paris climate accord.
Critics note that most of Blackrock’s money is in passive funds, limiting its ability to shape the market by divesting from unsustainable businesses.
The investor has other ways of exerting pressure, though. Last year it backed a shareholder resolution forcing oil giant Exxon Mobil to report on its exposure to climate risks. As a shareholder, it can also vote for board members.
This article originally appeared on Climate Home News.
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