EU Taxonomy seeks to encourage divestment from unsustainable investments. However, divestment only works if another investor buys the assets of the divesting investor. Divestment might be a good risk management strategy for a company or a fund manager. However, divestment is not an effective strategy for creating an actual outcome.
Traditional ideas about brand do not work well in the context of social licensing. Social license refers to the ongoing acceptance of your organisation’s business practices and ways of operating by your stakeholders. If you lose social license, you lose the legitimacy to continue
Organisations that value their reputation, their legacy and that want to be on the right side of history need a story about how they are contributing a positive impact. They need a story that they can tell with a sense of pride and that can bear external scrutiny.
An Introduction to Theory of Change Organisations typically have a stated purpose, a written strategy a set of activities and procedures for getting things done. However, many organisations will struggle with getting consensus on the story of how what they do moves them closer to their purpose. This is where Theories of Change are useful.