Important food for thought! “The Big Sustainability Illusion”
– Ralph Thurm urges us to recognize “thresholds” and “allocations” as the new supply & demand. They are critical for true sustainability reporting. They are science and ethically-based.
– They don’t line up with “pure ESG” numerator data, which is used in the reporting frameworks that are taking hold.
Ralph Thurm has penned an amazing four-part series called “The Big Sustainability Illusion.” You must read these. You simply must. Start with Part 1 – there are links to the next part as you wrap up each one.
Here’s an excerpt from Part 3:
In the end, what would we have achieved if we all opened up towards this ‘third way’ and allow ‘true sustainability reporting’ to actually see the light of day? Here’s my top 5:
1. Positioning ESG as necessary ingredient, but not the end goal, in an information infrastructure that delivers true sustainability performance.
2. Recognising Thresholds & Allocations as the new supply and demand in an age of scarcity. Without them, true sustainability reporting doesn’t exist yet, and will never exist in the future. It simply misses any connection to the real world.
3. Accepting a learning curve and consolidated action around delivering Thresholds & Allocations. The r3.0/UNRISD project is the prototype collaboration now underway to do so. Already more than 70 participants have joined and are now experimenting with this new generation of indicators. Several new organisations joined since I published the first article, last seats are still available, just PM me if that sounds exciting for you.
4. Letting go of attempts to converge amongst ‘pure ESG’ numerator data initiatives. This is wasted time and energy! I know, the Big 5, the existing standard setters and IFRS won’t be happy with that, but well… Better spend time in harmonizing around Thresholds & Allocations, as these are science-based and/or ethical norm-based. This is what r3.0 also instigates with a ‘Global Thresholds & Allocations Network’ at this moment. All those that feel attracted are asked to join and support this idea. It is necessary that this becomes a network of many voices.
5. Help to develop necessary education and new governance models that actually don’t obstruct but deliver on the necessary components of a regenerative & distributive economy and scale this learning through education, collaboration and advocacy. The r3.0 Transformation Journey Programs are one starting point to get you there.