The Environment Pays Back - 1108 Words

Watson 1 Nathan Watson Professor Eric Wright English 1010 9 October 2015 The Environment Pays Back Obviously, today’s world is on a steady decline. Countries are not able to keep up with their growing populations. Natural resources are being used up at a rate unsustainable for future generations. The ozone layer is continuously deteriorating as the rate of carbon dioxide emissions rises. Environmental groups and human rights activists alike fight for change in these trends every day, urging companies and people to ration the supplies they use up. So, who can turn this doomed world around? According to Chris McKnett, Vice President of State Street Global Advisors, they are institutional investors. Institutional investors have the money†¦show more content†¦Environmental issues involve the efficient use of resources, social issues involve human capital, and governance issues involve board and investors’ oversight of companies (â€Å"What is ESG?†). Basically, ESG makes sure companies are working in the best interests of the people by disclosing needed information and minimizing human and environmental problems. Institutional investors pay attention to companies employing these good measures because they do not want to sacrifice opportunity costs and have to do the dirty work at the same time. State Street Global Advisors is a great example of a company effectively using ESG without making any sacrifices or tradeoffs. The company, which Chris McKnett sits as Vice President, worked to integrate ESG into their company to cut overhead costs, but in the long run completed much more. As McKnett explains in his TED Talk Video, â€Å"The Investment Logic for Sustainability†: In 2012, State Street migrated fifty-four applications to the cloud environment and we retired another eighty-five. We virtualized our operating system environments, and we completed numerous automation projects. Now these initiatives create a more mobile workplace and reduce our real estate footprint . . . (McKnett 4:20). In an uncomplicated manner, State Street Global Advisors utilized ESG in their company by creating more available space and making a profit at the same time. Sustainable investors easily limit future risk