Post WW2 Bretton Woods Mentality of Maximizing Profits is Causing the Climate Catastrophe
For 80 years since WW2, the world economic system has focused solely on maximizing shareholder profit based on using fossil fuels; this mentality has created laws and compliance systems that cause the current climate catastrophe. Regulators, banks, institutional investors and companies have neglected the environment and all other stakeholder interests for 80 years in order to maximize profits. The world continues to apply these old laws and systems that prevent the sustainable transformation of all stakeholders. Greed, lust and old laissez-faire mentality cause the climate catastrophe by continuing business-as-usual practices. Lack of regulatory intervention have placed financial gain over long-term sustainability. Therefore, regulations that mandate prioritizing sustainability are almost non-existent and unenforceable.
| “It’s time for companies to stop putting profit above the planet. We need them to invest in renewable energy, adopt sustainable practices, and reduce their carbon footprint now.” (UN Global Compact Leadership Summit, 2021)
– Amina Mohammed, Deputy Secretary-General, UN |
The World has Failed to Transform the Maximize Profit Mentality to Balancing All Stakeholder Needs Mentality
The world’s leaders have concluded their COP 27 meeting. The government regulators, banks, institutional investors and companies of the world have put on display their inability to decarbonize and implement energy transition. Their failure to decarbonize is the root cause of climate change and climate catastrophe that now threatens life on earth. After so many failures, the dysfunctionality and collective culpability of government regulators, banks, institutional investors and companies continues unabated.
| “Companies need to take a hard look at their environmental impact and make drastic changes to their operations. We can’t afford greenwashing anymore; we need real action.” (World Environment Day, 2022)
– Inger Andersen, Executive Director, UNEP |
The World Needs a Unified Criteria to implement New Laws and Compliance Systems for Monitoring, Measuring and Reporting on Sustainability
Currently, there is no unified world standard to monitor, measure, report progress or benchmark sustainability. Negligence from regulators has left banks, institutional investors and companies rudderless. Existing laws do not mandate or enforce sustainable legal frameworks or guardrails that drive international best practice SOPs and global standards to push decarbonization or energy transition (replacing fossil fuels with zero-carbon sources of energy). Regulators have therefore allowed self-serving, incomplete or outdated criteria and conflicts of interest to be abused and greenwashing (paying to pollute, rather than decarbonizing) is widely practiced by lenders, investors and company stakeholders. The old laws are not built to solve these modern problems; they use different criteria and outdated methods and benchmarks for measuring sustainability and are abused by stakeholders; business as usual does not drive energy or ecological transformation.
The World Needs to Transform and Implement New Sustainable Rule of Law and Best Practice Compliance Standards and SOPs
In order to properly face all existential threats, each stakeholder (and the general counsel of each regulator, bank, institutional investor and company) must seek assistance to:
- Transform behavior and operations from maximizing profits to balancing all stakeholder interests
- Create sustainable standards, legal frameworks and guardrails that meet international best practice SOPs and global standards
- Train and transform your organization/business to be consistent with new mentality standards
- Implement systems to monitor, measure and report compliance with all new sustainable standards and criteria
- Require comprehensive transformation and training of regulator and regulated entities/borrowers/invested companies/supply chain
- Ensure full compliance with new sustainable rule of law and best practice compliance standards and SOPs
- Properly monitor, measure and report on new sustainable rule of law and best practice compliance standards
| “Governments have a duty to protect the environment and the human right to a healthy future. By failing to regulate effectively, they are not only neglecting their responsibility but also violating the rights of their citizens.” (UN Human Rights Council address, 2020)
– David Boyd, UN Special Rapporteur on Human Rights and the Environment |
In order to Achieve Successful Benefits and Results, General Counsels Must Implement Actionable Strategic Plans and Advanced Processes to Facilitate Transformation
Only organizations with pro-active general counsels and management teams that fully transform their mentality and implement new sustainability systems and best practice SOPs will survive and achieve their full societal and organizational potential including:
- Actionable concepts and insights
- Digestible knowledge
- Accelerate implementation
- Enable your business and your people
- Build competitive capacity and sustainability
- Transform concepts into actionable pathways/solutions
- Implement international best practices, SOP’s and compliance with global standards to achieve operational excellence
Furthermore, those pro-active stakeholders in the ecosystem will achieve the following benefits and results brought with full transformation.
- Regulators: deliver a results-driven whole of government and a whole of society effort to develop, plan and implement a concrete “dharma codex[1]” compliance market-shaping result to implement energy transition and decarbonization.
- Banks: aggregate and deploy loans effectively through green finance mechanisms consistent with “dharma codex” criteria and find more and better borrowers and promote decarbonization and energy transition.
- Institutional investors: invest effectively with mechanisms consistent with “dharma codex” criteria find more and better investments and invested companies and promote decarbonization and energy transition.
- Companies: maximize access and successfully compete for financing from banks and investors with mechanisms consistent with “dharma codex” criteria and promote decarbonization and energy transition.
For more information please contact Pamir Law Group at info@pamirlaw.com
*Dharma Codex is a set of all-encompassing sustainability criteria that helps all stakeholders reallocate priorities, resources and capital. In total, the Dharma Codex is composed of 640 comprehensive sustainability criteria for all regulators to apply and mandate regulated entities (banks/lenders, insurers/insured, institutional investors/invested companies and supply chain companies) to properly monitor, measure and report on comprehensive sustainability criteria (with incentives and penalties to enforce changed behavior) and drive systematic decarbonization and energy transition.