Article by Anne Richards, The Sydney Morning Herald
Image by Stijn Hanegraaf on Unsplash
The past year has been pivotal for sustainable investing – one in which its role in shaping our economic and financial futures became more urgent.
The COVID-19 pandemic and lockdowns of entire economies around the world have sharpened the focus on companies’ societal responsibilities: to their employees, their customers and to suppliers. This is no brief moment in the spotlight but a serious reappraisal of our capitalist system, how companies are run and for what purpose.
Capitalism has proved resilient for two reasons. First, a structured system of exchange is a natural, human way for us to value resources and get them to where they are wanted and needed. The marketplace has been central to all civilisations. Second, it is a flexible system that adapts to changes in society and the world. It has been through many different stages of evolution.
It appears that capitalism is about to go through another of those periodic re-inventions.