Minouche Shafik calls for sustainable investments at COP27

By Alan Nemirovski

On 7 November 2022, LSE Director Minouche Shafik delivered a speech at the opening ceremony of COP27 in Sharm El Sheikh, Egypt, where she discussed the global economy’s future and called for further sustainable investments towards a “green industrial revolution.”

Shafik’s speech was delivered alongside many influential figures, including President Joe Biden, UN Secretary-General António Guterres, and European Commissioner for Energy Kadri Simson. Their speeches similarly converge on a call for sustainable investments, with Biden and Simson outlining sustainability and investment goals for the United States and the European Union, respectively.

In her speech, Shafik presented a choice between maintaining the current state of unsustainability or evolving towards a “green” future, characterised by the universal use of low-carbon technologies and global cooperation, as opposed to individual solutions for every country. She also noted public sector investment, reducing high debt in developing countries, and the involvement of the private sector as key steps to generate the next revolution to make global economies more sustainable.

Shafik’s speech has been applauded by the LSE, whose sustainability team tweeted they are “proud” to see the Director speaking at COP27. However, not everyone feels the sentiments and believe that ideals expressed by Shafik in her speech are not reflected on campus. The largest criticisms by Honour Astill, an LSE student and member of LSE’s Sustainable Futures society, involve the lack of sustainable practices at LSE, the institution that Minouche Shafik leads.

Astill commented,“LSE’s embrace of finance doesn’t square with their purported support for sustainability. LSE engages in high-profile greenwashing, like becoming the first carbon-neutral university in the UK, but doesn’t make meaningful changes on campus, even something as simple as making their disposable cups recyclable.”

A spokesperson for LSE commented on LSE’s sustainable practices, including the School’s sustainable investments, “Creating a sustainable LSE is one of the commitments of LSE’s 2030 strategy. In close partnership with our diverse community, we developed a Sustainability Strategic Plan in 2020, focusing on six key themes to maximise our impact in shaping a sustainable world – including campus operations and sustainable investment.

The LSE spokesperson further stated, “For example, we constantly look at ways to lower our carbon emissions and have pledged to be net-zero carbon by 2050. We aim to have a ‘zero impacts’ campus, actively minimising the environmental impacts of our estate and operations – from waste reduction and water usage to our construction and refurbishment projects.

‘‘LSE’s Catering services take sustainability seriously’’. Their initiatives include ‘‘[promoting] low-carbon, plant-based choices using behavioural science approaches, and [looking] at the whole supply chain through a sustainability lens, from sourcing high-quality food items to reducing food waste. Other initiatives include a 25p levy on single-use water bottles and coffee cups, which goes in to funding the Sustainable Projects Fund, and the active promotion of LSE KeepCups at all catering outlets to encourage the use of reusables.

With regard to sustainable investments, the LSE Spokesperson said, “In terms of sustainable investments, LSE’s Socially Responsible Investment Policy guides our investment practices, taking into consideration Environmental, Social, and Governance (ESG) factors. The policy is currently under review, following a consultation in March 2022 with the LSE community. An updated policy is to be published soon. LSE is also a signatory of the United Nations supported Principles for Responsible Investment.’’