guardrails to protect the commons
Remove bad options. Business models that deplete common resources and replicate dangerous inequality must be taken off the table
Universal Owners. These long-term, diversified shareholders have the incentive and ability to work together with companies to establish comprehensive and universal sustainability guardrails to protect the
commons
Collective action. Guardrails become “tickets to the game” that all companies must follow as a condition of market participation and shareholder trust
Essential Elements of Sustainability Measures
Pre-competitive: a level playing field from which to compete
Collective: a mechanism to ensure standardization
Systemic: solutions that preserve the valuable systems in which business is embedded
Potential Guardrails
Science-based targets for minimizing adverse impacts on natural resources and other natural capital costs
Accounting for carbon emissions
Limits on political spending
Certification requirements for water use, human rights and other critical issues
Limits on use of inversions, havens and other tax avoidance schemes
Requirement that ESG benchmarks be met before any performance pay accrues
Together, we're embarking on a fundamental transformation of our financial system...