Economics

Working from home reduces the motherhood penalty by 77%. Seventy. Seven. Percent. A new study from Italy found that when mothers can work from home, they're less likely to reduce their hours and more likely to continue progressing in their careers. Which, when you think about it, is hardly shocking. It's much easier to stay on track at work when you're not spending two hours a day commuting, frantically trying to get to nursery before it closes and operating with the logistical complexity of a mid-sized military operation. But there's more.. Fathers' flexibility matters too. Some people insist on calling it the "parenthood penalty", but mothers and fathers do not experience parenthood in the labour market in the same way. Mothers take the financial hit. Fathers generally don't. However, when fathers have access to remote work, mothers' financial losses after childbirth are significantly smaller. Why? Because childcare, school pickups, sick days and life admin stop being Mum's problem by default and start becoming a shared responsibility. The researchers found that a father's ability to work remotely has almost as much impact on a mother's earnings as her own ability to do so. The report goes even further. It estimates that if all jobs that could be done remotely actually allowed people to work remotely, the lifetime gender earnings gap would shrink by 30%. Thirty percent. Just by letting people work from the place where they also happen to keep the tiny humans alive. Imagine that. https://lnkd.in/eBjMe3NM

#Batteries have become so cheap that around-the-clock solar is becoming economically viable for the first time. And this isn't just theoretical, it’s based on real world data. In 2024 alone, average battery prices fell by 40% and signs are a similar fall is occurring in 2025. These cost reductions are being driven by: ➡️ The rapid scale up of assembly plants ➡️ Intense manufacturer competition ➡️ The continued decline of LFP battery cell prices But there’s more to it than just falling prices. Batteries are also getting better: ✅ Higher round-trip efficiency ✅ Longer usable lifetimes ✅ Projects becoming cheaper to finance as the technology de-risks 20 years is now the standard design life of the battery – a big shift from just a few years ago. Taken together, this changes the economics entirely. Pairing solar with enough batteries to keep the electricity flowing though the night is no longer a distant dream – it's an economic reality. At around just $76/MWh all in, dispatchable solar is already competitive with other forms of firm generation in many markets. This analysis focuses on markets outside of China and the United States, where competitive procurement of Chinese-manufactured equipment is reshaping global storage economics. This isn’t a silver bullet. Future power systems will still rely on a diversified mix, including wind, hydro where available, gas backup, potentially nuclear, interconnection and longer-duration storage. But cheap batteries fundamentally change the role solar can play. They turn it from a purely daytime resource into a genuine round-the-clock contributor and this has profound implications for power systems, investment decisions and energy security. Data and original chart is from Ember's latest report, link below. #energy #renewables #energytransition

91% of new energy is now 75% cheaper than alternatives New data reveals a fundamental shift in the energy landscape, as per trends from the last years. Over the past decade, renewable energy costs have plummeted across all major technologies: • Solar PV costs dropped 75% • Onshore wind fell 62% • Offshore wind decreased 60% • Concentrated solar power declined 54% The strategic implications are clear: 81% of renewable capacity added in 2023 now delivers electricity at lower costs than alternatives, which can save a lot of resources of business. For businesses, this data underscores three critical considerations: →Financial optimisation: Renewable investments now offer superior long-term cost predictability compared to volatile fossil fuel markets. →Risk mitigation: Early movers in renewable adoption are positioning themselves ahead of inevitable regulatory and market shifts. →Stakeholder value: ESG-focused investors and customers increasingly expect measurable progress on clean energy transitions. Source: International Renewable Energy Agency (IRENA) Our World in Data Visual Capitalist #renewableenergy #sustainability #cleanenergy #energytransition #ceo #csuite #esg #sustainablebusiness #climatetech #energyeconomics #leadership #futureofenergy #solarpower #windpower #cleantech #energyinnovation

Chanel gets into the recycling business with launch of new company.. ♻️ In a surprising move, the French luxury brand launched NEVOLD. The new company will focus on turning leftover fabrics, unsold clothes & old leather into new materials. 🚚 Fashion waste is a HUGE (!) issue. The industry generates around 92 mio tonnes of textile waste annually and luxury brands contribute significantly with billions of dollars in unsold inventory. Nevold, meaning "never old", will be Chanel's B2B play to future-proof their supply chain & promote circularity. It now unites 3 specialist firms that the mega brand has been acquiring since 2019: 1) L'Atelier des Matières: offers recycling & upcycling services for luxury & premium brands 2) FILATURES DU PARC: a spinning mill specialized in recycled yarns 3) Authentic Material: a leather recycling company who breaks down leather into pellets for reuse 🚀 The long-term goal is to produce & sell premium recycled input, not only to Chanel's own studios, but also to external (luxury) brands and sectors like hospitality & sportswear. And the timing is right! 🇪🇺 From 1st of Jan 2025 on, every EU member state must collect textiles separately, a first step towards "Extended Producer Responsibility" fees that will shift disposal costs onto the brands. Imho, companies with in-house recycling capabilities will gain an edge.. 📈 Other luxury groups are pursuing similar strategies: > LVMH launched "LVMH Circularity", which to focus on recycling & managing unsold inventory/production waste. > Kering targets a 40% reduction in environmental footprint by end of this year and aims for half of its materials to align with circular economy principles. ♟ Nevold also fits into Chanel’s practice of buying key suppliers (from embroiderer Lesage to milliner Maison Michel) to lock in scarce skills & materials. ➡️ As regulations tighten & resources become scarcer, the brands that can turn yesterday’s inventory into tomorrow’s fabric will set the pace for the next growth cycle in luxury.

If you REALLY want to support women in the workplace, you need to start: → Offering flexible work arrangements, especially to support mothers. → Encouraging women to go for internal promotions → Paying women fairly and transparently → Creating environments where women’s voices are heard → Calling out microaggressions and biases when you see them → Offering leadership training and mentorship for women → Rethinking how performance and ambition are measured (not just who shouts the loudest) → Making networking and career progression opportunities accessible to all → Championing women even when they’re not in the room → Reviewing your hiring and promotion processes to eliminate bias → Creating policies that support women through all life stages (not just maternity leave) → Holding senior leaders accountable for diversity and inclusion goals → Ensuring workplace policies support women’s health, including menopause and period policies International Women’s Day should be about real, tangible action. Too often, we see businesses celebrating IWD while their leadership teams are still male-dominated, pay gaps persist and workplace policies don’t support women’s real needs. So, if you’re a business leader, hiring manager, or even a colleague... Ask yourself: What are you actually doing to make the workplace more equitable for women? 🤔

You may not believe in climate change (despite scientific consensus), but your insurance provider sure does. Günther Thallinger of Allianz puts it plainly: if global temperatures rise by 3°C (which is where we’re currently headed) the insurance industry will collapse. “The financial sector as we know it ceases to function. And with it, capitalism as we know it ceases to be viable.” Extreme heat and climate-driven disasters have killed and displaced millions across the globe. This isn’t normal. These events are becoming more unpredictable, more intense and more deadly. Climate change and the destruction of nature are combining to create the perfect storm, fuelling disasters while stripping away our capacity to endure them. Right now, in fact, you are likely reading about a fresh disaster that is ‘unprecedented’. And the financial fallout is mounting. Global insured losses from natural (climate) disasters have averaged about US$100 billion over the past five years (Moody's). And insurance providers are hiking up premiums or, as was the case in California, refusing to issue new home insurance policies due to climate disaster (see State Farm and Allstate). As Günther says, "Heat and water destroy capital. Flooded homes lose value. Overheated cities become uninhabitable. Entire asset classes are degrading in real time." The risk of climate change, he says, has historically been managed by the insurance industry. But we are fast approaching temperature levels "where insurers will no longer be able to offer coverage for many of these risks." Insurers don’t deal in opinion, they deal in data. And the data is clear: climate change and nature decline aren’t up for debate; they’re a reality that you are witnessing. Whether or not you buy the science, the financial consequences are impossible to ignore. Your premiums have already noticed. Thankfully, we already have many of the tools and solutions to address climate change and the destruction of nature. What we don't have? Consistent political will. For Australians wanting to make a difference ahead of the election, Biodiversity Council has created a simple tool to help you contact your local political candidates and call for stronger environmental action: https://lnkd.in/ghAxEv2y They have also identified the key actions we need the next government to take to safeguard and restore the environment: https://lnkd.in/g62uCTfd See Günther Thallinger's post: https://lnkd.in/gahhv6MK See the report by Moody's: https://lnkd.in/ggE_2VCa See the article by The Guardian: https://lnkd.in/gpGBXCRZ

Climate change is a systemic problem Systemic problems create interconnected risks 🌍 Climate impacts do not unfold in isolation. They influence environmental, social and economic systems in ways that reinforce each other over time. Environmental pressures escalate as temperatures rise. Soil degradation, water scarcity, biodiversity loss, air pollution and marine impacts reduce ecosystem resilience and increase exposure to climate risks. Social risks intensify as conditions shift. Public health challenges expand due to heat stress and changes in disease patterns. Climate driven disruption increases forced migration. Inequality grows because communities with fewer resources face higher vulnerability and fewer adaptation pathways. Economic pressures emerge across value chains. Food insecurity rises as agricultural systems face climate stress. Energy poverty increases when infrastructure cannot keep pace with extreme weather. Housing and labor markets experience volatility as climate impacts disrupt local conditions. Resource related tensions become more common when availability shifts across regions. These dynamics show why climate action requires a systems perspective. Environmental, social and economic changes are interconnected. Each reinforces the next and shapes long term exposure. For companies, this positions sustainability as a strategic requirement. Effective decisions depend on understanding cascading risks, sector specific vulnerabilities and the relationships between climate drivers and business outcomes. This is central to governance, resilience and long term value creation. As expectations on disclosure, risk management and strategic alignment continue to grow, organizations that adopt a systems approach will be better prepared to anticipate change and respond with clarity. Which of these systemic pressures is most relevant for your sector today? I posted this diagram a while back and recent conversations have highlighted how important it is to understand climate change and its interconnected risks. #sustainability #sustainable #esg

Economic policymakers are grappling with elevated uncertainty, trade tensions, and effective tariff rates reaching levels not seen in a century. Our April 2025 World Economic Outlook shows a range of global growth projections. Our reference forecast, reflecting policies as of April 4, shows global growth declining to 2.8% in 2025 and 3% in 2026, down from 3.3% in the January Update. Despite the slowdown, global growth remains above recession levels.    The path forward demands clarity and urgent action. Countries should work constructively to promote a stable trade environment, manage difficult policy tradeoffs, rebuild fiscal space, and accelerate structural reforms to boost resilience and growth. 

Economic geography almost never aligns with administrative boundaries. Councils, states and even national borders are useful governance constructs, but economies don't operate neatly within them. The OECD uses the concept of Functional Regions, defined by economic linkages such as commuting patterns, labour markets, supply chains and industry connections. Examples are everywhere. Greater Melbourne functions as a single labour market incorporating more than 30 local government areas. Albury–Wodonga is one economy split across two states. The Productivity Commission identifies 89 functional economic regions in Australia. None align with council or state boundaries. There are some big implications of this for economic development: 1. Strategies that assume local economies are closed systems don't align with how economic activity actually works. Economic activity routinely crosses boundaries, regardless of policy design. 2. Strong outcomes come from playing to comparative strengths within the functional region. Access to high-quality jobs across the region matters more than their precise location. 3. Assets outside formal boundaries still shape local prosperity. Universities, ports, hospitals, airports and major employers influence outcomes far beyond the jurisdictions they're located in. 4. Collaboration is not optional. Functional economies require coordination across councils, agencies and sometimes states. In Australia, this logic sits behind regional economic development strategies and bodies such as Regional Development Australia committees. Trust and partnership-building are core economic development capabilities. 5. Economic development is not a junior function. Working across functional regions requires senior-level leadership with the authority to coordinate across portfolios, organisations and jurisdictions. The mismatch between economic reality and administrative geography is structural. Economic development that ignores it tends to produce weak strategy and poor outcomes.

The relocation decisions of male-female couples are predominantly determined by what's best for the man's career: 1. Couples are more likely to relocate when a man is laid off than after a woman is. 2. Men's earnings increase following a couple's move to a new commuting zone, while women's earnings stay the same or decline. This in part because women spend less time working, particularly in the first year after the move when they are more likely than men to be job hunting. The gender gap persists for at least five years and is largest among couples who are in their 20s. The researchers study Germany and Sweden, and attribute the results to relocation decisions being driven by antiquated gender norms. They conclude that "households in both countries place less weight on income earned by a woman compared to a man, particularly in Germany." By Seema Jayachandran, Lea Nassal, Matthew J. Notowidigdo, Marie Paul, Heather Sarsons, and Elin Sundberg. https://lnkd.in/eHSXi5Mj