Sancroft Insight: May 2022

Sancroft Insight: May 2022
31st May 2022 Judy Kuszewski
In Insights

Welcome to Sancroft’s May 2022 newsletter! While global markets are in turmoil, the Russian war in Ukraine drags on, and the cost of living keeps ballooning, it can be hard to find many reasons for optimism. Yet, hope is one of the main messages I took away from our recent evening networking talk featuring Natural England’s Tony Juniper in conversation with our chairman Lord Deben – hope for recovery of nature through smart, committed action from business working alongside policymakers. ‘Net positive for nature’ must become an essential business priority, as Tony puts it. The more we understand about the essence of biodiversity loss as the twin of climate change, the more hopeful the call to action for business can be, and the more effectively we can act. Find out more in Ben Greenway’s write-up.

Ben has also been looking into the energy transition and exploring how businesses can benefit from the virtuous circle created by an ambitious action plan backed by government incentives. Called the ‘ambition loop’, this describes how strong government-led policies can drive businesses to act in the short-term, creating even greater momentum towards a low-carbon economy in the medium- and longer-term. Read about how the ambition loop can be harnessed to make rapid progress on alternative fuels, speeding up net-zero performance while reaping the financial benefits of government support.

Picking up on the theme of nature as a business priority, Ilkka Saarinen looks into the need for – and tools to support – the clear analysis and pricing-in of nature-related financial risks. He argues that the risks of climate change and biodiversity loss must be analysed as one and the same – whether physical, transition or liability risks, and regardless of whether they carry likely credit, liquidity, market or business impacts. Investors in nature have the opportunity to drive this integration, and to play a role in making this hugely positive nature economy a reality. More here.

Switching gears, Senior Analyst Matt Thorogood has taken a very eye-opening look at governance in the global business of football, and presents a truly compelling case for why it’s time for governance reform to take centre stage in the beautiful game. While the ‘G’ of ESG is often overshadowed by other challenges – from climate to human rights – in the world of professional football, good governance is essential to the viability of clubs and relationships with fans and regulators. Read Matt’s insight and recommendations.

I hope you enjoy reading these updates, but we’d also like to welcome you to our in-person events as we start to host more of these. Please get in touch if you’d like to know more.