Capital Market and Corporate Governance Reform (01:15)
Ethical Markets president Hazel Henderson welcomes Citizens Bank of Canada founding president Linda Crompton, who works as a governance and strategy adviser to corporations, NGOs, foundations, and institutional investors.
Shifting Risk Assessment (05:02)
Financial markets are focused on money, while risks come from the environment. Crompton discusses how the Exxon Valdez spill and environmental regulation led to the corporate social responsibility movement.
Externalizing Environmental Costs (02:42)
Henderson recalls convincing New York City insurance companies to pressure Detroit auto manufacturers to clean engine exhaust in the 1970s. GDP did not distinguish between polluting and non-polluting industries.
Reforming the Global Financial Casino (03:55)
In response to high frequency trading and derivative products that contributed to the 2008 crisis, the U.N. has inquired about designing a long term sustainable financial system. Crompton says most corporations want to become more responsible.
Wall Street Regulation Attempts (01:52)
After the Glass-Steagall and Dodd-Frank Acts, financial institutions lobbied Congress to restrict SEC funding. Rating agencies have a conflict of interest.
Ethical Investment Opportunities (04:28)
Henderson has learned that creating a financial product promoting natural principles encourages corporate social responsibility. Rather than just divesting from fossil fuels, students should pressure university endowments to shift to low carbon markets and sustainable energy companies.
Addressing Greenwashing (02:42)
Social media and other technology tools can expose dishonest corporate campaigns. Henderson set up the EthicMark Award for truthful advertising. CEOs are now held accountable for sustainability efforts.
World Economic Forum (02:47)
In 2000, heads of state began meeting CEOs to negotiate factory locations with tax breaks. More recently, risk assessments have taken environmental factors into account. NASA satellites are providing evidence of ecological damage.
Fossilized Asset Allocation (02:19)
Presenting evidence of climate change can convince asset managers to remove fossil fuel companies from portfolios and encourage them to invest in clean energy technologies, rather than energy commodities. Henderson thanks Crompton and concludes the interview.
Credits: Reforming Capital Markets and Corporate Governance: Ethical Markets 6 (01:16)
Credits: Reforming Capital Markets and Corporate Governance: Ethical Markets 6
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