In a world still obsessed with maximizing profits, what happens when economic success comes at the cost of social wellbeing and the planet?
In the latest episode of Beyond GDP: The Social Progress Podcast, Michael Green, CEO of the Social Progress Imperative, sits down with Catherine Howarth, CEO of ShareAction, for a conversation that goes straight to the heart of corporate power: What must business do to get the world back on track to achieve the UN’s Sustainable Development Goals? The answer might surprise you.
One of the solutions isn't in feel-good corporate social responsibility, but actually it’s in our pension funds.
In the episode, we explore a paradox most savers don't realize they live with: you might ethically choose sustainable products at the grocery store, yet your pension money could be empowering companies that actively harm the environment or public health.
As Howarth explains, large corporations are primarily owned by institutional investors, like pension funds. This means we, the savers, are the owners of these companies. We have a dual interest: good financial returns and ethical corporate behavior. However, what happens when you’re saving for a healthy retirement, yet your pension fund is invested in the very junk food conglomerates that undermine your long-term health?
The conversation doesn't shy away from the hard truths of the climate crisis. While many companies talk about sustainability, the critical failure, according to ShareAction, lies in the investment community’s reluctance to dial down capital allocation to polluting industries.
Listen in to find out how shareholder power, specifically mobilized by pension fund clients, can be a force capable of holding these companies accountable and forcing a true change.
Beyond environmental impact, the discussion pivots to direct impacts on social wellbeing:
Ultimately, the issue comes down to a democratic gap within the capitalist system. While people increasingly demand accountability, the investment world often operates without the democratic checks and balances we see in the political realm. Despite being the true owners of large companies, pension fund clients currently lack a voice in their decision-making process. However, demand for this democratic power is growing rapidly across most regions. In the episode, Catherine explains in detail what is happening in the U.S., considering the country has some of the largest companies in the world.
Catherine Howarth closes with a bold prediction: that the coming decades will see a surge in demand for democratic rights inside the capitalist system. This shift will empower shareholders to have a real voice and voting power over the actions of the corporate community and the investment system.
Are businesses acting in your best interest? How can your pension fund become an engine for positive change?
Listen to the episode or watch the full conversation.
Don't forget to follow and rate our show! This helps us keep posting new episodes every week.
In a world still obsessed with maximizing profits, what happens when economic success comes at the cost of social wellbeing and the planet?
In the latest episode of Beyond GDP: The Social Progress Podcast, Michael Green, CEO of the Social Progress Imperative, sits down with Catherine Howarth, CEO of ShareAction, for a conversation that goes straight to the heart of corporate power: What must business do to get the world back on track to achieve the UN’s Sustainable Development Goals? The answer might surprise you.
One of the solutions isn't in feel-good corporate social responsibility, but actually it’s in our pension funds.
In the episode, we explore a paradox most savers don't realize they live with: you might ethically choose sustainable products at the grocery store, yet your pension money could be empowering companies that actively harm the environment or public health.
As Howarth explains, large corporations are primarily owned by institutional investors, like pension funds. This means we, the savers, are the owners of these companies. We have a dual interest: good financial returns and ethical corporate behavior. However, what happens when you’re saving for a healthy retirement, yet your pension fund is invested in the very junk food conglomerates that undermine your long-term health?
The conversation doesn't shy away from the hard truths of the climate crisis. While many companies talk about sustainability, the critical failure, according to ShareAction, lies in the investment community’s reluctance to dial down capital allocation to polluting industries.
Listen in to find out how shareholder power, specifically mobilized by pension fund clients, can be a force capable of holding these companies accountable and forcing a true change.
Beyond environmental impact, the discussion pivots to direct impacts on social wellbeing:
Ultimately, the issue comes down to a democratic gap within the capitalist system. While people increasingly demand accountability, the investment world often operates without the democratic checks and balances we see in the political realm. Despite being the true owners of large companies, pension fund clients currently lack a voice in their decision-making process. However, demand for this democratic power is growing rapidly across most regions. In the episode, Catherine explains in detail what is happening in the U.S., considering the country has some of the largest companies in the world.
Catherine Howarth closes with a bold prediction: that the coming decades will see a surge in demand for democratic rights inside the capitalist system. This shift will empower shareholders to have a real voice and voting power over the actions of the corporate community and the investment system.
Are businesses acting in your best interest? How can your pension fund become an engine for positive change?
Listen to the episode or watch the full conversation.
Don't forget to follow and rate our show! This helps us keep posting new episodes every week.
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