Ken Pucker

Vanguard had previously joined the Net Zero Asset Manager’s initiative (NZAM) in 2021, but withdrew 21 months later, citing confusion about individual firms’ views. Vanguard is unique in its ownership structure, commitment to passive index-based low-fee funds, and focus on retail investors. It has taken a more cautious approach to ESG investing and doesn’t heavily rely on external ESG ratings services. Critics argue that Vanguard should compel companies to decarbonize to prevent portfolio… Show more

Vanguard had previously joined the Net Zero Asset Manager’s initiative (NZAM) in 2021, but withdrew 21 months later, citing confusion about individual firms’ views. Vanguard is unique in its ownership structure, commitment to passive index-based low-fee funds, and focus on retail investors. It has taken a more cautious approach to ESG investing and doesn’t heavily rely on external ESG ratings services. Critics argue that Vanguard should compel companies to decarbonize to prevent portfolio losses, but this overlooks asset managers’ primary duty and overstates ESG investing’s impact. Vanguard believes that addressing climate change requires governmental action and that the industry should aggressively endorse this path. Regulatory changes clarifying sustainable investing and a bifurcation of ESG investing can enable more authentic decarbonization. Vanguard’s NZAM withdrawal acknowledges the limits of win-win ESG “solutions” and clarifies the path to urgent decarbonization. Show less

Most people assume that ESG Investing is designed to reward companies that are helping the planet. In fact, ESG ratings which underlie ESG fund selection are based on “single materiality” — the impact of the changing world on a company P&L, not the reverse. Asset management firms have been happy to let the confusion go uncorrected — ESG funds are highly popular and come with higher management fees. The danger with ESG investing is that it might convince policy makers that the market can solve… Show more

Most people assume that ESG Investing is designed to reward companies that are helping the planet. In fact, ESG ratings which underlie ESG fund selection are based on “single materiality” — the impact of the changing world on a company P&L, not the reverse. Asset management firms have been happy to let the confusion go uncorrected — ESG funds are highly popular and come with higher management fees. The danger with ESG investing is that it might convince policy makers that the market can solve major societal challenges such as climate change — when in fact only government intervention can help the planet avoid a climate catastrophe. Show less

Managers of ESG investments create false hope, oversell outperformance,
and contribute to the delay of long-past-due regulatory action.

Few industries tout their sustainability credentials more forcefully than the fashion industry. But the sad truth is that despite high-profile attempts at innovation, it’s failed to reduce its planetary impact in the past 25 years. Most items are still produced using non-biodegradable petroleum-based synthetics and end up in a landfill. So what can be done? New ESG strategies such as the use of bio-based materials, recycling, and “rent-the-runway” concepts have failed. Instead, we must stop… Show more

Few industries tout their sustainability credentials more forcefully than the fashion industry. But the sad truth is that despite high-profile attempts at innovation, it’s failed to reduce its planetary impact in the past 25 years. Most items are still produced using non-biodegradable petroleum-based synthetics and end up in a landfill. So what can be done? New ESG strategies such as the use of bio-based materials, recycling, and “rent-the-runway” concepts have failed. Instead, we must stop thinking about sustainability as existing on a spectrum. Less unstainable is not sustainable. And governments need to step in to force companies to pay for their negative impact on the planet. The idea of “win-win” and market-based solutions has failed even in one of the most “progressive” industries. Show less

Allbirds is a footwear startup focused on simple design, comfort, and sustainable natural materials. The case describes the company's product development process that works with suppliers to develop natural materials including wool and sugarcane to substitute for conventional petroleum-based materials and leather. The case is set in 2021, when Allbirds was extending its product range into apparel, and expanding beyond its online store to open more retail store around the world. Allbirds was… Show more

Allbirds is a footwear startup focused on simple design, comfort, and sustainable natural materials. The case describes the company's product development process that works with suppliers to develop natural materials including wool and sugarcane to substitute for conventional petroleum-based materials and leather. The case is set in 2021, when Allbirds was extending its product range into apparel, and expanding beyond its online store to open more retail store around the world. Allbirds was freely sharing its know-how and material innovations with its competitors to try to scale its efforts to decarbonize fashion, but was also keen to remain ahead and differentiated based on simple design, comfort, and sustainable natural materials. The case highlights the growing the environmental impact of the footwear industry, including from its use of leather and fossil-fuel-based materials, and its focus on shorter product lifespans. Show less

For two decades progressive thinkers have argued that a more sustainable form of capitalism would arise if companies regularly measured and reported on their environmental, social, and governance (ESG) performance. But although such reporting has become widespread, and some firms are deriving benefits from it, environmental damage and social inequality are still growing.

This article, by Timberland’s former COO, outlines the problems with both sustainability reporting and sustainable… Show more

For two decades progressive thinkers have argued that a more sustainable form of capitalism would arise if companies regularly measured and reported on their environmental, social, and governance (ESG) performance. But although such reporting has become widespread, and some firms are deriving benefits from it, environmental damage and social inequality are still growing.

This article, by Timberland’s former COO, outlines the problems with both sustainability reporting and sustainable investing. The author discusses nonstandard metrics, insufficient auditing, unreliable ESG ratings, and more. But real progress, he says, requires not just better measurement and reporting practices but also changes in regulations, investment incentives, and mindsets. Show less

Notwithstanding the promises of books such as Green to Gold, the transition to a sustainable economy is far from assured. In fact, environmental destruction is outpacing sustainable practice. This article explores the systemic reasons why achieving sustainable practice is such a challenge and introduces leveraged recommendations to address the gap between rhetoric and reality.