Are there cracks appearing in the sustainability agenda? I ask because, certainly in the UK, there appears to be a gentle back peddling on certain environmental commitments at governmental level. This is leading to fears that the heat is going out of the fight against climate change. This might not be a good position ahead of COP28, the annual UN climate gathering that, this year, is being held in Dubai.
However, I take reassurance from Liz Loxton’s review of sustainable finance, our cover article. The value of green bonds, having dipped last year, is now back on the rise again, indicating that, as far as treasurers and their fundraising activities are concerned, there is still strong support for aligning finance with their companies’ ESG strategies.
Some of you may be reading (a paperless version of) this magazine at the ACT’s annual ESG conference. If so, I hope you will also be interested in the comments from Helen Slinger, executive director of Accounting for Sustainability (A4S), the organisation set up by King Charles III when he was Prince of Wales. Even if you are not at the conference, I recommend it. Among other things, she sets out how treasurers can develop a sustainable finance framework and, in doing so, help your organisation’s support for the UN’s Sustainable Development Goals (SDGs).
Unfortunately, there is no doubt that, in many parts of the world, companies are facing a period of economic uncertainty that will stretch into next year. Some companies may not make it through, so we asked Permjit Singh to set out how treasurers and insolvency practitioners can work together to rescue a business – with many companies struggling, it is timely advice.
We also asked treasury experts what they think lies ahead in the new year – optimism with a healthy dose of realism is probably the best way to sum up their views. They range from Asia, to Africa and the UK, and from the ever-increasing use of digital payments to the need for greater diversity, both in the treasury profession and its suppliers.
It wouldn’t be a complete issue without mention of artificial intelligence – on this occasion, Deloitte’s Ikaros Matsoukas asked ChatGPT to help a (fictional) treasury team design an in-house bank. The results were revealing and are a demonstration of how far the new technology has come in what feels like a relatively short space of time.
Finally, to counter-balance what can appear to be an unrelentingly stressful outlook, we asked the Archbishop of Canterbury, Justin Welby, to look ahead and offer a voice of hope. Welby is, of course, a member of the ACT, and I hope his fellow treasurers are able to draw some comfort from his thoughts.
Philip Smith
Editor
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