Topic: Drivers
BE23

Financial assets safeguard the pursuit of future-fitness

A Future-Fit Business implements investment policies and processes that continuously seek to improve the future-fitness of both the financial assets it owns, and any that it manages or controls on behalf of third-party asset owners.

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About this goal

Many companies own or control financial assets (equity investments, debt instruments, cash deposits with banks) as part of their core business, as a strategic business objective or simply as a method of utilizing spare cash until it is needed for other purposes.

Purchasing and trading financial assets linked to an underlying organization supplies capital for the investee to continue – or expand – its activities. Any positive or negative outcomes caused by the investee may be sustained or increased by the capital provided, and so the investor is mutually accountable for them.

To be Future-Fit, a company using its capital to finance the activities of others must strive to safeguard the pursuit of future-fitness, by identifying and mitigating any negative impacts resulting from those activities.

 

Why this goal is needed

SDGs this will contribute to

Version notes

BE23: Financial assets safeguard the pursuit of future-fitness