A financial post

I feel like sharing a couple articles today, both quite focused on money.

The first, about “Return to Office” policies, supports my argument that commute time should be paid work. Some highlights:

Most companies cannot show actual monetary benefits from RTO mandates. But most employees can show actual and significant monetary costs from RTO mandates.

In essence, these kinds of mandates represent a transfer of wealth from employees that their employers don’t even benefit from. …

The result: a slow bleeding of high-performing employees, millennials and women.

In other words, to impose RTO is to implement a policy of gradually reduced overall employee performance, increased difficulty in meeting gender inclusion goals and undermined efforts to groom the next generation of corporate leaders.

https://www.computerworld.com/article/3712843/the-hidden-high-cost-of-return-to-office-mandates.html

This seems to me like something unions should be making a much bigger stink about, not just for the quantifiable financial cost to employees, but also for the time and environmental and health costs too.

The second article, about environmentally destructive Canadian pension plan investments, supports the impression I formed recently that many financial people are basing their projections on historical trends rather than on the future we can actually expect. This article persuasively describes this as a failure in fiduciary duty:

The second edition of [Shift Action’s] Canadian Pension Climate Report Card notes that while some pensions made very modest improvements over the previous year, on the whole, Canadian pensions continue to act as if the climate crisis isn’t happening, and as though their considerable investments in the fossil fuel sector weren’t exacerbating the crisis.

The report notes that even though 2023 was the hottest year on record, Canadian pension managers have not responded appropriately. By not aligning investments with “safe emissions pathways and implementing credible climate plans,” pensions are failing at their fiduciary duties to protect their plan members, especially the youngest cohort of contributors.  …

The report further notes that the Canada Pension Plan Investment Board (CPPIB) — the crown corporation that oversees and manages the Canada Pension Plan — continues to make questionable investments in fossil fuels. Shift Action found a considerable disconnect between statements made by CPPIB executives about the urgency to act on climate change, and the fund’s continued support of the fossil fuel sector. The CPPIB has also repeated industry talking points, such as “Canada has a reputation for responsibly-produced energy” despite considerable evidence to the contrary.

Close relationships between pension fund managers and the fossil fuel sector are also a cause for concern. “We see directors of pensions also sitting on the boards of fossil fuel companies, creating an unacceptable risk for conflicts of interest,” said [Adam Scott, Shift Action’s executive director]. 

https://www.desmog.com/2024/02/29/canadian-pension-funds-havent-kept-up-with-financial-r isks-of-climate-change-shift-action-report-finds/

It seems to me that the concept of retiring on a pension to enjoy life is an absolute pipe dream for all but the oldest and wealthiest if we don’t start getting leaders who care more about people and the planet than about wealth and power.

It’s good to hear money-focused people starting to share this viewpoint.