Diversity, Climate Change and Worker Rights Took Spotlight in 2020
This week, we talk about some of 2020’s biggest environmental and social stories in the world of business.
Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger. Want to get our newsletter every Wednesday? Hit the subscribe button in the upper right corner and please share with your friends!
Hi Dieter! Since this is the last edition of our newsletter this year, let’s recap some of the biggest events we’ve chatted about in 2020.
This year was defined by the Covid-19 pandemic and the measures countries put in place to slow the spread of the coronavirus. The pandemic dominated our lives and, as it unfolded, raised concerns about working conditions, especially for employees who can’t work from home. Climate change and racial justice also emerged as two major issues that reshaped the business world in 2020.
Diversity and inclusion took center stage at corporations after the killing of George Floyd ignited global protests. We saw CEOs pledge tens of millions of dollars in donations to support racial equality and promise to hire more Black employees at all corporate levels.
Investors also urged businesses to share more data about their racial, ethnic and gender makeup and to make diversity and inclusion a priority. One of the biggest headlines late in the year was Nasdaq’s plan to seek approval from the Securities and Exchange Commission to require the more than 3,000 companies listed on its stock exchange to have at least one woman and a person from an underrepresented minority group on their boards, or explain why they can’t.
Goldman Sachs said it would no longer help U.S. and European companies with boards made up exclusively of white men go public and BlackRock, the world’s biggest money manager, said in early December that it plans to push the companies it invests in to have more diverse workforces and boards next year.
Dieter: Sustainability analysts and investors say the pandemic has also reminded the market about another issue that could have consequences for the global economy: climate change. Pressure continued to mount from investors and governments on companies to disclose more about how they are tackling climate change. Investment houses managing more than $9 trillion said they would make their portfolios carbon neutral by 2050.
Governments are baking climate ambitions into their recovery plans. In the U.S., President-elect Joe Biden has a plan to spend $2 trillion over four years in areas like electric cars and renewable energy to fight both climate change and the economic downturn by creating jobs. The European Union, which raised its carbon-reduction target to 55% by 2030 this year, also promised that around 30% of its €1.8 trillion coronavirus recovery plan would go to fighting climate change.
The pandemic also prompted many investors and companies to focus on employees, especially those who can’t work from home. Many of these work at low-wage retail jobs. Some fund managers said they engaged with the companies in their funds on employment issues such as paid sick leave, flexible work and personal protective equipment. At the beginning of April, at least 400 large and midsize public companies had launched initiatives to help workers and communities, donating more than $875 million in cash and 16.5 million masks, according to research by Bank of America.
The last few months of 2020 saw the beginning of the distribution of Covid-19 vaccines, produced by Pzifer and BioNTech, Moderna, and Astrazeneca and the University of Oxford. We will have to wait and see whether these curb infection rates and pave the way toward economic recovery.
Dieter: This year was also the first year for our newsletter. We hope you have enjoyed it and we look forward to continuing to elevate the conversation in 2021.
Share your thoughts below, email us or catch us on Twitter. Happy holidays and remember to wash your hands.👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music, skateboarding and yoga (but I’m bad at both). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardonmaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com @violian.tammy