By Matt Gitsham from Human Resources Magazine UK • Reposted: September 1, 2023
This year’s HR Most Influential (HRMI) survey found that there was a strong view that responsibility for environmental, social and corporate governance (ESG) sits with everyone in the business – but that HR has a vital role to play, alongside leadership as supporter, partner and educator.
Approximately 65% of survey respondents said their organisation had a formal strategy for improving performance on ESG/sustainability.
In most cases, it appeared that this strategy was being driven either by the board or some kind of central ESG function.
HR practitioners were, however, playing a key role in supporting the strategy from a people perspective, with a particular focus on inclusion and diversity, working conditions, fair pay, wellbeing and ethical business practice.
“Sustainability, ESG and helping businesses go net zero are now crucial components of business and people strategies,” said one respondent.
“HR needs to be at the decision-making table and influence from there,” said another.
“To make HR the ‘owner’ would run the risk of these important topics being ‘HR projects’. ESG/sustainability needs to be a belief system and not just a process.”
Educating the workforce
Survey respondents also felt HR had an important role to play in educating the workforce, with 52% saying leadership development on ESG/sustainability was being offered across the business.
“HR can help people unlock their understanding of how to embed this in day-to-day work”, and “HR has a key role in the education of the workforce, to ensure they understand ESG/sustainability and the impact of their decisions,” were among the comments.
There was a recognition among HR professionals that a focus on ESG could be a competitive advantage when it comes to recruitment, retention and brand reputation.
Employees were increasingly looking for organisations that support this agenda, and were voicing a desire to work for companies with strong values and a proactive commitment to fighting issues such as climate change and inequality.
“Ultimately, people are voting with their feet and basing consumer and employment decisions on the sustainability actions of companies,” said one respondent.
Developing sustainable leaders
It is good to see this growing recognition among HR professionals of the important role they have to play in both championing and supporting ESG efforts.
At Hult International Business School, we have been conducting research specifically into how leadership roles need to change in response to the critical environmental, social and human rights challenges facing us all.
Our findings underline the need for innovative learning and development interventions to help leaders, managers and future talent navigate the sustainability transitions that are happening right now.
Building literacy on sustainability and ESG issues is of course an important starting point, but our research suggests that first hand experiences are at the heart of what it takes for leaders to build the emotional connection and commitment to put the sustainability agenda front and centre in their work.
For the leaders interviewed in our study, this might have meant experiences such as engaging with people living in poverty, personal experience of the impact of climate change, or experience of the changing interests of key partners and stakeholders.
Influential mentors and participation in professional networks focused on ESG had also been formative experiences for many of our interviewees.
This has implications for the design of learning and development, as well as for the way HR approaches the wider task of managing talent and succession planning programmes.
Leadership development activities need to be structured to create opportunities for current and future senior leaders to have precisely these kinds of personal, first-hand experiences, through powerful experiential learning.
HR professionals also need to value these kinds of life experiences when making decisions about recruitment, career development and succession planning, and make sure they are embedded in the HR processes that underpin these.
As one survey respondent said: “It’s time for HR to contribute and view this as an opportunity to strengthen a purpose-led EVP just as much as an opportunity to help save our planet.”
The next stage of our research will look at the evolving role of HR in sustainability, surveying what kinds of activities HR departments are increasingly engaging in in relation to sustainability and ESG, and what they are learning about what works.
From the International Well-being Institute via CSR Newswire • Reposted: August 30, 2023
The past few years in the United States have seen remarkable progress in the adoption and implementation of healthy building policies. The U.S. Conference of Mayors (USCM) has issued two unanimous policy resolutions, one in 2020 and another in 2022, endorsing healthy buildings as a powerful tool to advance public health and an essential defense against future health threats. Heeding the call, cities like Miami, Jersey City and Oklahoma City are now leading by example, scaling the WELL Health-Safety Rating across a portfolio of municipal buildings. The Biden Administration too has shined a bright light on healthy buildings with the first ever White House Summit on Indoor Air Quality and the launch of the Clean Air in Buildings Challenge, not to mention CDC’s recent guidance on ventilation and GSA’s efforts to drive healthy building research and promote the Health in Buildings roundtable.
It’s clear that, increasingly, governments at all levels are stepping up to help create spaces that support health and well-being. And just as the momentum continues to build in the U.S., a similar trend is unfolding in other parts of the world, reflecting a universal demand for healthier spaces.
In the United Kingdom, the Department for Work and Pensions (DWP) and Department of Health and Social Care (DHSC) in July announced efforts to increase uptake of occupational health services in the workplace. The policy effort encourages employers to ramp up these services to help employees access vital mental and physical health support at work, particularly for those working in small and medium-sized enterprises.
In the United Arab Emirates, The Dubai Land Department (DLD)’s Real Estate Regulatory Agency (RERA) has officially adopted the WELL Health-Safety Rating and is encouraging organizations to align with the program in jointly owned properties (JOPs) and enhance investor confidence.
In the European Union this past spring, the EU Parliament passed its Energy Performance of Buildings Directive (EPBD), a key legislative tool to set and implement building decarbonization goals. The approved EPBD included an important healthy building provision, Article 11a, titled, “Indoor Environmental Quality,” which says, “Member States shall set requirements for the implementation of adequate indoor environmental quality standards in buildings in order to maintain a healthy indoor climate.”
In Australia, the Australian Health Protection Principal Committee, the national government’s top health protection committee, announced that it was making indoor air quality a national priority. “Today is about putting this on the agenda, on the map,” said Member of Parliament Dr. Michelle Ananda-Rajah, a longtime advocate of prioritizing IAQ and who, earlier this year, also hosted a Clean Air Forum earlier this year.
Globally, healthy building policies are shaping more than just urban landscapes, they’re transforming how our indoor spaces protect and enhance our health. As the global understanding deepens about the pivotal role healthy buildings can play in improving public health, there’s a mounting urgency to utilize policy to accelerate spaces that advance human health and well-being. Together, these global policy efforts will help accelerate the healthy buildings movement, enabling their benefits to reach more and more people around the world.
By Brett Crawford, Associate Professor of Management, Grand Valley State University; Erica Coslor, Senior Lecturer in Management, The University of Melbourne and Madeline Toubiana, Associate Professor of Entrepreneurship and Organization, L’Université d’Ottawa/University of Ottawa via The Conversation • Reposted: August 30, 2023
Summer and fall are prime times for getting outdoors across the U.S. According to an annual survey produced by the outdoor industry, 55% of Americans age 6 and up participated in some kind of outdoor recreation in 2022, and that number is on the rise.
However, the activities they choose are shifting. Over the past century, participation has declined in some activities, such as hunting, and increased in others, like bird-watching.
These shifts reflect many factors, including demographic trends and urbanization. But outdoor activities also have their own cultures, which can powerfully affect how participants think about nature.
As scholars who think about organizational theory, managementand entrepreneurship, we are interested in understanding effective ways to promote social change. In a recent study, we analyzed the work of the nonprofit group Trout Unlimited, which centers on protecting rivers and streams across the U.S. that harbor wild and native trout and salmon.
We found that since its founding in 1959, Trout Unlimited has pursued a unique type of social change. Historically, people fished to obtain food – but Trout Unlimited has reframed the sport as a vehicle for environmental conservation. It did this by gradually shifting members from catch and keep practices to catch and release, with fish carefully returned to the water. In our view, this strategy offers a powerful example of energizing social change through care, rather than disruptive strategies that emphasize power, anger and fearmongering.
A sport that inspires devotion
Fishing is very popular in the U.S.: As of 2016, more then 35 million Americans fished, mainly in fresh water. Trout Unlimited was founded in 1959 on the banks of Michigan’s Au Sable River with the aim of building a strong conservation ethic among anglers. Today, the group has more than 300,000 members spanning hundreds of local chapters across the U.S.
Many Trout Unlimited members prefer fly fishing, a technique that uses a rod, reel, specialized weighted fishing line and artificial flies designed to mimic trout’s natural food sources. Trout generally thrive in beautiful, fast-flowing, cold-water streams and rivers; to catch them, fly fishers repeatedly cast a line so that their lure moves like a flying insect landing and floating on the water. It’s a sport that combines deep knowledge of a specific location with time-honored techniques.
In the 1653 classic “The Compleat Angler,” English writer Izaak Walton called fly fishing “an art worthy the knowledge and practice of a wise man.” Norman Maclean’s 1976 book “A River Runs Through It,” which recounts the author’s childhood experiences fishing Montana’s Big Blackfoot River, declares, “In our family, there was no clear line between religion and fly fishing.” Changing the practices of devoted anglers is no small feat.
Fly-fishing and stewardship
The first stage of change that Trout Unlimited pursued in its interactions with members was what we call mending – fixing aspects of a practice that are seen as problematic or damaging. For Trout Unlimited, that meant subtly removing harvesting practice from images of fly fishing, while simultaneously reinforcing anglers’ deep connections to rivers.
This reframing began in the late 1960s and continues today, as we learned by analyzing cover images and editorials from “Trout,” the organization’s member magazine, and interviewing staffers at Trout Unlimited and others throughout the fly fishing industry. Editors of “Trout” scrubbed away images of harvesting gear, such as creels, stringers and spears. Instead, they featured photos of trout being safely released and of caught fish remaining underwater in their environment.
These changes did not directly speak to or challenge anglers’ practices. Instead, they worked more subtly. “Trout” editors also began to describe old harvesting artifacts like creels as “something of a curio” and “relics of the past.”
In another editorial shift, the magazine increasingly featured images of vast river landscapes rather than close-up photos of people fishing. This approach elevated the experience of being in nature above that of catching fish.
Editors included poetry and sermonettes in the magazine that modeled normative values of conservation and catch and release practices. Here’s one example:
Carefully I reach out, and lift him in my net,
But I make sure not to touch him, until my hands are wet.
For not doing so would damage him, and that would not be right,
For this indeed I owe him, for such a noble fight.
As gently as I can, I remove the hook and set him free …
Using words and images, the magazine sought to trigger positive emotions and a sense of deep connection and love for trout.
Caring for fishing grounds
As Trout Unlimited built momentum in the 1960s and ’70s, the organization made river and stream restoration a major priority. This period marked the birth of the modern environmental movement. Americans were recognizing that industrial development was harming precious natural resources, including fishing grounds.
Logging had ravaged wetlands and stream banks along river corridors. Dam construction, particularly in Western states, was blocking fish passage, preventing trout and salmon from swimming upstream to their spawning grounds. Acid drainage from mining operations was contaminating waterways. And recreational and commercial fishers were over-harvesting many important species.
Trout Unlimited chapters organized events that ranged from local river cleanups to advocating for federal Wild and Scenic designation for free-flowing rivers and streams. This status protects them from overuse and in-stream development, such as dams and irrigation diversions.
Members also campaigned for dam removal to open up fish spawning habitat and for creating “no-kill” zones along stretches of rivers, where catch and release was required. Trout Unlimited framed these efforts as supporting fly fishing through positive change.
An inclusive message
Today, Trout Unlimited centers conservation in its mission of protecting, reconnecting, restoring and sustaining coldwater fisheries. We see the organization as an important model in a world driven by social media algorithms that amplify negative emotions. In our view, driving change through actions that represent love and care, rather than anger and shame, could engage more people in tackling major social challenges.
This approach does have limitations. It is useful when a practice can be altered to be more sustainable, as was the case with catch and release. However, as recent research shows, recreational fishing still has major environmental impacts, especially on marine species. And sometimes social change requires ending widespread practices altogether. Nonetheless, the key takeaway for us from Trout Unlimited’s work is that social change doesn’t have to vilify in order to succeed.
By Luke Heilbuth via Sustainable Brands • Reposted: August 29, 2023
Climate resilience is the ‘resilience of a company’s strategy and business model to climate-related changes, developments and uncertainties.’ This language is worth reflecting on, as it brings the concept of resilience science into mainstream business thinking.
Background
In June, the International Sustainability Standards Board (ISSB) issued its inaugural standards — IFRS S1 and IFRS S2. The Standards create a common language for companies to report on how sustainability and climate-related risks and opportunities affect their prospects. They reflect what investors want, and will form the basis of mandatory climate-related reporting requirements in many advanced jurisdictions (aside from the United States).
This article explores the most interesting part of IFRS S2: the climate-resilience assessment. Building on the TCFD — which IFRS S2 has now supplanted — climate resilience is defined as the “resilience of a company’s strategy and business model to climate-related changes, developmentsanduncertainties” [emphasis added]. This language is worth reflecting on, as it brings the concept of resilience science into mainstream business thinking.
Tipping points and ignorance
Invented by Canadian ecologist C.S. “Buzz” Holling in 1973, resilience science explains how human-natural systems (the interconnected relationship between humans and the environment) do not exist in a fixed state — but are instead characterized by constant change and tipping points.
This is not how businesspeople usually think. Instead, they assume that a complex system — like an organisation — is stable, isolated, measurable and linear. Take COVID: Most of us thought things would be disrupted for a time before ‘bouncing back’ to normal. The mistake is right there in the language. Post pandemic, we didn’t go back. The way we live and work changed.
A better understanding of the world acknowledges that systems go through adaptive cycles of growth, decay, restructuring and renewal. As business leaders, we must acknowledge our lack of certainty and control. We should reimagine our actions, plans and strategies as experiments that, as in science, must be constantly re-evaluated.
As author Nassim Taleb says in Fooled by Randomness, probability is “the acceptance of the lack of certainty in our knowledge and the development of methods for dealing with our ignorance.”
That’s why IFRS S2 is not the dry reporting standard it appears at first view, but something quite visionary — it embraces uncertainty and consents to our ignorance. It asks us to see through the ‘illusion’ of the pristine, perfectly self-contained balance sheet — where the ledger is always squared, and all things are known.
Focus on the process
To explain the “changes, developments and uncertainties” that arise from the physical and transition risks and opportunities of climate change, a company is required to use scenario analysis. This is not meant to predict what might happen in the future — but to offer up ‘what if’ scenarios to help your business better think through its options and plan accordingly.
IFRS S2 says you must disclose the “inputs and key assumptions” used in your scenarios — not just the result. In other words, your explanation of the process is essential. This is because investors want to test the quality of your thinking, rather than simply reading a claim that your business is resilient.
Staying practical
The method of scenario analysis you employ is up to you, and should be “commensurate with your circumstances.” For most businesses, an expensive, quantitative-modelling exercise is not required or even the best option. The authors of IFRS S2 recognize the burden that companies face in complying with a science-based approach to climate change.
As a result, they have sought to navigate a practical approach that requires the use of “all reasonable and supportable information” (the floor of the effort required) available at the reporting date without “undue cost or effort” (the ceiling). The concept is explained by ISSB Vice Chair Sue Lloyd in this webinar. The IPCC, IEA and PRI all provide publicly available scenarios which provide the basis for a useful, cost-effective and strategic approach.
Finally, your company is not required to perform a scenario analysis as part of the reporting effort each year. The minimum requirement for updating your scenarios is whenever you review your corporate strategy as part of the strategic planning cycle. That said, each year you must revisit the assumptions that underpinned your analysis and consider whether any changes affect the assessment of your company’s climate resilience. The IFRS refers to this annual update as a “resilience assessment.”
Scenario analysis done well will ultimately help you fine-tune your overall strategy and business model — enhancing your business’s prospects and resilience against the vagaries of an uncertain future.
In recent years, investor portfolios have grown too big to avoid systemic risks such as climate change. Recognizing their vulnerability to black swans, institutional investors have pushed investee companies to prioritize resilience over short-term cost optimisation; the IFRS Standards reflect the trend. As Taleb says, the defining characteristic of change is that it cannot be predicted: “This is the central illusion in life — that randomness is a risk — that it is a bad thing.”
Is continuous growth compatible with our sustainable development goals? Photo: GETTY
By Nils Rokke, Contributor via Forbes • Reposted: August 22, 2023
The word “degrowth” might be unfamiliar to many ears, but its meaning has never been more critical to understand. Our current economic model’s foundation lies in a presumptive flaw—the continuous belief in infinite growth. But what happens when the pillars of this belief crumble?
For years, experts warned of the impending limitations of continuous growth. The groundbreaking 1972 book, “Limits to Growth,” spotlighted our planet’s sustainable boundaries. This work evaluated how population, living standards, and resource utilization converge and affect sustainability.
Almost four decades later, Professor Jorgen Randers, one of the book’s authors, published an update titled “2052.” Here, he highlighted a critical turning point: our economic model becomes flawed when equity becomes central, and justice prevails.
Consumption and wealth continue to define strategy
Western countries often equate a happy life with high resource consumption and wealth. However, Bhutan offers a contrasting model. It introduced the “happiness economy,” where the nation prioritizes citizens’ happiness over economic growth, suggesting that happiness can be decoupled from resource-intensive activities.
Yet, the growth principle continues to dominate global strategies, evident in the UN’s Sustainable Development Goals (SDGs). Target number 8, for instance, emphasizes “decent work and economic growth.” Recent Holberg Prize awardee, Professor Joan Martinez-Alier, has openly criticized this, arguing that such a goal might be incompatible with other SDGs.
Introducing degrowth and demand reduction
“Degrowth” is a term that advocates for a deliberate, socially just, and equitable reduction in the scale of production and consumption. The goal of degrowth is to achieve better well-being and improved ecological conditions, reducing the size of the global economy to fit within the planet’s biophysical limits.
There are several key principles to degrowth, including sustainability, social well-being, equity, direct democracy, and localized economies.
Understanding degrowth also requires us to examine the concept of demand reduction. This can be categorized into three intertwined yet distinct components:
Efficiency: Maximizing output while minimizing resource use. It’s about doing more with less.
Sufficiency: Re-evaluating the amount of production and consumption truly necessary for human well-being.
Behavioral Change: Shifting societal habits towards sustainability, wherein society collectively and willingly opts for less consumption.
Demand reduction is usually only discussed in policy debates regarding a short-term response to the energy crisis, and rarely as a prerequisite to reaching net zero.
Sometimes the term degrowth is confused with post-growth, a common designation of the various paths we can take when growth has stopped or declined. This gives more freedom to choose paths that allow a continuation of some practices at a smaller scale, whereas degrowth is a clear strategy to decrease growth. Degrowth is therefore one specific pathway in the post growth concept.
Degrowth requires a mindset shift
Jason Hickel, an economic anthropologist from the University of Barcelona, is a staunch advocate for degrowth. At a recent Brussels conference attended by top EU officials, Hickel emphasized the urgent need to reconsider GDP growth as our benchmark for societal success.
He critiqued the western world’s continued exploitation of global resources, effectively maintaining a colonial economy. His take: the real focus should be on meeting human needs, not just growth. However, this suggests a more dominant role for state governance, a model reminiscent of eco-communism, which has been criticized in the past.
Timothy Parrique from Lund University echoed these sentiments. He refuted the idea of producing more while using fewer resources, highlighting the necessity of a complete decoupling to stay within planetary boundaries.
Challengers to degrowth
However, the degrowth principle isn’t without its challengers. How, they argue, can we meet the energy and food demands of a growing population without growth? How can we simultaneously tackle climate change, poverty, and other pressing challenges without the momentum that growth provides?
Nobel laureate Joseph Stiglitz raises an essential consideration: while sacrifices may be necessary, ensuring they’re fairly distributed is crucial. The core challenge with degrowth lies in this equity—how can we ensure everyone gets a fair share?
We must also consider if degrowth is genuinely a viable economic model. It could be argued that if our growth-centric model continues unchecked, it may simply stagnate and consequently ‘degrow’ on its own. But what repercussions would such organic degrowth have on our socio-economic structures?
The heart of the matter isn’t just about stopping growth but ensuring that any model adopted, whether growth or degrowth-oriented, satisfies people’s real needs in a manner that is considered fair and transparent.
Exceeded sustainable limits
Professor Johan Rockström of the Stockholm Resilience Centre, introduced and spent years analyzing the “planetary boundaries” principle. The findings are alarming: we’ve exceeded sustainable limits in various critical areas, from nitrogen cycles to extinction rates.
Moreover, while technological advances push for efficiency, there’s no evidence to suggest that increased efficiency results in decreased resource use. Instead, it seems to enable more people to use these resources, which again poses the question: how can we truly embrace degrowth?
Looking at unsustainable economic activities brings the issue into sharp focus. For instance, the sight of massive cruise ships and leisure boats at picturesque sites serves as a reminder of our high-resource consumption habits.
Infinite growth in a finite world is, by definition, unsustainable. Yet, as a society, we seem trapped in this growth mindset because we haven’t found an alternative. More research, discussions, and debates on these concepts are crucial.
The UN’s latest review on SDGs called for a “wholesale reform of our morally bankrupt financial system.” While such an acknowledgment is a step forward, the commitment to GDP growth as a primary measure persists. It’s high time for a global debate on the sustainability and equity of our growth principles.
By Robert Brown from Global Trade Daily • Reposted: August 18, 2023
Franchise owners can make a significant impact on the world. Their collective teams and resources kickstart movements to help people and the environment, depending on which industry the owner enters.
These are some of the best franchise concepts because they’re socially responsible, impactful and profitable.
Sustainable Seafood Companies
Many consumers assume seafood is a better industry for future franchise owners because it doesn’t use the same business processes as beef farms. Although sustainable fishing supplies are readily available, corporations sometimes rely on methods like trawling to keep up with high demand.
Trawling drags large nets across the ocean floor. They pull up thriving coral communities and plant life without guaranteeing a full catch of the intended fish species. Trawlers also create significant amounts of carbon dioxide, contributing to the issue of global warming.
Entrepreneurs can mitigate this issue by opening sustainable seafood companies, like a franchise with Shuckin’ Shack. The brand works with a sustainable seafood supplier, recycles its oyster shells and has multiple approvals from ocean-focused environmental groups like the Plastic Ocean Project. By working with a brand such as Shuckin Shack, the franchise owner’s corresponding eco-friendly business models would rely on similar production methods to avoid harming endangered plant and marine animal species.
Plant-Based Meat Brands
Cultures transform meats with widespread arrays of recipes, but it’s not the best ingredient for the environment. Livestock industries contribute 12–18% of greenhouse gas emissions globally. Becoming part of a franchise that tries to reduce that statistic is a significant way to create positive change for the planet.
Home Care Businesses
While mainstream companies focus on catering to younger generations, entrepreneurs can enter the socially responsible home care industry. The demand for in-home assistance is projected to rise by 29% through 2024, leading to a higher demand for more home care service providers throughout the U.S.
There are numerous reasons why people prefer to age at home. They may not be able to afford an assisted living facility. Some people live in rural areas that don’t have those facilities or have health conditions that require specialized care.
It’s especially beneficial if the prices for those home care services match the economic abilities of older adults in the surrounding area. When patients and their loved ones don’t have to go into additional medical debt to access health care, franchise services become humanitarian efforts.
Junk Removal Trucks
Municipal solid waste is a challenge wherever people live. Based on the most updated research, it contributes an average of 35 million tons of garbage to landfills, but it doesn’t all belong there. People often throw out reusable or recyclable goods, not realizing those options are available or have them nearby.
Junk removal franchises are a socially responsible way to fight this ongoing issue. Gone for Good is one brand to consider that donates whatever goods it can while recycling leftover materials from client pickup sites. It’s a convenience consumers appreciate because it makes their lives easier while keeping landfill waste from polluting the environment.
Learning Center Brands
Daycares help parents return to work, but only if they can afford it. The average parent pays between $5,357–17,171 annually for childcare. It’s a significant financial burden, but learning center franchises can solve this systemic challenge.
Learning centers provide daycare for young kids while combining their daytime activities with learning opportunities. Each parent’s monthly payment becomes an investment in their child’s academic success. Kids can learn custom curriculum lessons that help them later in life and prepare them for grade school.
The key is matching the daily, weekly and monthly care costs with the economic abilities of families in the surrounding area. Discounts also make learning centers more affordable by merging socially responsible business models with what people can comfortably manage.
Solar Panel Franchise
Social and environmental responsibility merge with solar panel installation franchises. They allow homeowners to reduce their monthly utility bills by harvesting solar energy from their rooftops. Saving money is why 92% of homeowners who installed solar panels went through with the purchase or seriously considered it.
Using less electricity from power plants also helps the environment. The plants don’t have to produce as much electricity for surrounding areas, leading to fewer carbon emissions per plant.
Entrepreneurs with green values can open a business with franchise brands like Solar Grids. The company provides the training and management resources a new business owner needs to launch a successful enterprise. Solar Grids also assists with training installation specialists so every newly installed panel works at peak efficiency.
Green Landscaping Companies
Landscaping is a foundational part of many neighborhoods, but it’s not always helpful for the planet. Sprinklers use excessive water to keep plants alive, while chemical-based products kill insects and leak into surrounding habitats.
Nearby clients would ensure the environment benefits from organic fertilizers, chemical-free pesticides and recommended plant choices to reduce water usage. Expert team members could also provide landscape design appointments to pitch ideas like hardscaping. Utilizing rock formations, fire pits and patios would make any yard better for the environment while making the homeowner’s yard-care routine more manageable.
Urgent Care Clinics
Prioritizing the health of a community through a franchise is one of the most socially responsible and impactful business models. Research shows over 100 rural hospitals shut down between 2013 and 2020, forcing people to travel an average of 20 miles farther for essential services.
Urgent care franchise locations can assist with this issue. Entrepreneurs often reach out to companies like American Family Care to open clinics in medically underserved areas like rural communities.
The brand helps new owners navigate the legal steps of providing new medical services while streamlining the location’s success with tailored marketing and developmental plans. The centers become crucial to the region’s medical infrastructure, guaranteeing long-term success and positive social impact.
Franchise owners can also look into providing services for affordable rates based on the average wage in the surrounding city or zip code. Gallup polling shows 38% of Americans skipped medical care in 2022 due to the rising costs of essential services. Meeting a community’s needs with affordable medical treatments at an urgent care venue would merge humanitarian and franchising opportunities.
Open a Franchise With a Purpose
Humanitarian needs range from a healthy planet that provides a long-term home to affordable medical services. Franchise owners can fill those gaps, depending on the type of franchise they open. Entrepreneurs must consider these impactful business opportunities to start the career they desire while making lasting positive changes in their communities.
By Christopher Faires, Postdoctoral Researcher in Supply Chain Management, Iowa State University and Robert Overstreet,Assistant Professor of Supply Chain Management, Iowa State University via The Conversation Reposted: August 17, 2023
Back-to-school sales are underway, and people across the country will be shopping online to fill up backpacks, lockers and closets – and they’ll be taking advantage of free returns.
In 2022, retail returns added up to more than US $800 billion in lost sales. The transportation, labor, and logistics involved raised retailers’ costs even higher. Product returns also increase pollution, greenhouse gas emissions and waste in landfills, where many returned products now end up.
So how can retailers fix this problem and still provide quality customer service?
We conductresearch in reverse logistics, focusing primarily on the intersection of retail returns and customer behavior. Here are some insights that can help reduce the abuse of free returns and lower costs without losing quality.
Where a product is returned makes a difference. Items returned to the store can be restocked an average of 12 to 16 days faster than those that are mailed. Mailed returns also cost companies more: The difference between the most expensive shipped returns and least expensive in-store returns is $5 to $6 per item. That adds up quickly.
Studies show that customers may be willing to change their return behavior – with a little help.
Behavioral nudges are a technique used in decision-making to steer a person toward a specific behavior. Putting candy at eye-level at the grocery store checkout counter to encourage impulse purchases is an example, or making employee participation in a 401(k) savings program the default option. Another type of nudge involves providing more information.
If you’ve ever shopped online and seen statements like “10 out of 10 customers recommend this product” or “Only 2 items left in stock,” you have experienced the use of information to influence your decision. Nudges emphasizing sustainability may also appeal to customers and have a positive impact on return behavior.
Returning items to a store can avoid extra transportation, shipping and packaging, saving money and avoiding waste and emissions. AP Photo/Mark Lennihan
In a recent survey, 94% of merchants said customers were concerned about sustainability, according to a report from Happy Returns, a logistics firm that works with retailers.
However, a much lower percentage of customers actually make sustainable return decisions. That suggests that customers do not fully understand the environmental impact of their return choices – and it offers a way for retailers to help.
Our research found that when customers were given information about the environmental impact of the different return options, they were nearly 17 times more likely to choose an in-store return rather than returning an item by mail. Nudges like this offer a simple and inexpensive way for retailers to alter customer behavior in favor of sustainability.
Picking up returns to speed up the process
Some customers request to return an item but then wait weeks before mailing it. It’s known as customer procrastination, and it also has a cost. The longer these products remain unprocessed, the more value they can lose.
High-priced electronics, such as laptops and tablets, have short product life cycles and lose value quickly, sometimes at a rate of 1% per week. Seasonal items, such as back-to-school supplies or winter coats, become more difficult to resell if retailers get them back on shelves after demand has bottomed out. A returned item’s resale value determines its destination: It can end up back on store shelves, sold to liquidators for pennies on the dollar or sent to a landfill.
Transportation is a large expense for retail returns, for both companies and the planet. AP Photo/Mark Lennihan
A home pickup service for time-sensitive returns could reduce delays in a way that is also useful to the customer. A small number of pickup vehicles collecting returns from customers could avoid multiple shipments, reducing total miles traveledand cutting vehicle emissions, while also avoiding the need for each return to be individually packaged.
Our research found that a pickup service could help retailers collect returns faster and reduce product value loss, particularly for high-priced products and products that lose value quickly, such as consumer electronics.
How to change policies without losing customers
While several retailers have stopped offering free returns or changed their return policies over the past year, our research suggests that changes affecting all customers might not be the best choice.
Broad policy changes that affect everyone might involve limiting the number of returns per customer, charging a fee for returns or shortening the window for returns. An alternative is a targeted return policy that applies only to people who abuse the system. For example, retailers can restrict free returns for people who repeatedly buy more items than they intend to keep, knowing they can return the rest.
We conducted two studies to explore how customers would view changes to a retailer’s return policies.
In the first study, 460 participants were significantly more likely to speak negatively about the retailer – a fictitious company, in this case – when the retailer’s returns policy change applied to everyone and affected everyone equally.
Our follow-up study asked 100 online customers about their thoughts regarding generalized versus targeted policy changes. When the return policy change targeted customers who abused returns, 44% of the participants expressed positive emotions, and only 13% expressed negative emotions.
Those positive emotions included comments like, “I would feel proud of the company for taking action against people who try to cheat the system.” Such responses indicated that participants understood that cheaters were increasing the price paid by everyone.
But when the return policy change applied to everyone, 64% of the participants expressed negative emotions. Nearly half indicated they would speak negatively about the policy change to family and friends, and 42% said they would shop at another store.
Other ways to help customers make better decisions
Retailers can also change the online shopping experience before the customer makes a purchase to avoid the need for returns.
One way is to obtain detailed customer feedback on returns and use that to provide better product descriptions to customers. Another is to avoid incentivizing the wrong behavior. Well-intentioned free shipping on orders over a set dollar amountcould encourage customers to overpurchase and later return products.
Posting videos of items for sale can help buyers spot problems that photos might hide. Virtual fitting rooms that use an avatar of the customer to try on clothes virtually can help customers choose the right size the first time.
There is no doubt that managing retail returns is a difficult task. To make the process more sustainable, retailers need to help customers make choices that limit the need for a return or that minimize the impact of a return on the environment and, of course, the retailer’s bottom line.
“Anti-ESG” rhetoric on political campaign trails and cable news breeds misinformation and creates misunderstanding about the use of environmental, social and governance factors in business. This week we’re breaking down some of the most common myths we see out there about ESG and what it means for businesses and investors, with insight from Andrew Behar, CEO of the shareholder advocacy organization As You Sow.
Myth: ESG is just a big greenwash. Companies aren’t really improving.
Back in 2019, the CEO-led Business Roundtable — which represents executives at some of the largest U.S. companies — issued a statement revising the “purpose of a corporation.” After decades of saying companies should make all of their decisions based on maximizing short-term shareholder profit, the executive group proclaimed the private sector has a duty to all of its stakeholders, including employees, customers and communities. That means considering things like environmental sustainability and social equity alongside profit — in other words, adopting ESG principles.
Those are big words from a lobbyist group that includes executives from major financial companies like BlackRock and JPMorgan Chase, and many onlookers weren’t convinced. Environmental and social advocates said businesses weren’t living up to what they put on paper, and — particularly as the anti-ESG narrative took hold — politicians, pundits and social media warriors took aim at companies for the mere mention of considerations beyond the bottom line. The result? Companies got quieter about their work in ESG, a trend known in sustainability circles as “greenhushing.”
“Five years ago, companies were doing nothing and taking a victory lap,” Behar said. “Right now we have companies doing stuff — and I can tell you, it’s with greater intensity, with greater depth — but they do not want to take the victory lap. It’s a better situation, because they’re actually changing their policies and practices, but it’s the greenhushing. They want to be quiet, because there are too many trolls out there.”
Behind the scenes, companies are spending more on new programming tied to sustainability and social impact. They’ve also agreed to gather more information about things like diversity, equity and inclusion (DEI) in their workforces and the ways climate change impacts their supply chains — and disclose that information to investors and shareholder groups like As You Sow.
“When the declarations were made in 2019 about the new purpose of a corporation, that was really the moment where all of the companies said, ‘Okay, if we want to outperform, if we want to succeed, we’re going to be shifting our fundamental philosophy,'” Behar told us.
In this sense, anti-ESG critics are about four years “late to the party,” he said. “There’s no question in my mind that we are well along this implementation phase of a new purpose of a corporation and this transformation to a regenerative economy based on justice and sustainability. The extractive economy is winding down. And it’s just a question of how fast and how much pain they’re going to cause everybody else in the process.”
Myth: ESG and sustainable investing are anti-business.
Many far-right critics characterize ESG as something brand new, a symptom of the “wokeness” and “cancel culture” they say grip modern society. But ESG isn’t new. The term was coined back in 2005. And even before the Business Roundtable’s 2019 statement, thousands of professionalswere working as “ESG analysts” across the mainstream financial sector.
For investors, ESG is primarily a risk management and long-term growth mechanism. By understanding how companies manage their supply chains, source their ingredients and treat their workers, investors can better understand which companies are prepared for the future. Likewise, companies leverage ESG principles to manage and mitigate the risks they face.
“Overall, what we’re seeing here is just basic good business practices being demonized for political ends and people spending a lot of money to do it. And a lot of that is trying to stop what we see as market forces that have already happened — this is way over,” Behar said. “The companies that have adopted justice and sustainability are the ones that people want to put their money in, because they know those companies are going to succeed over the next five, 10, 20 years.”
Myth: If companies embrace ESG, goods and services will become more expensive.
Many individual products that are marketed as “sustainable” do come at higher prices. Critics often use this point to argue that the more companies consider ESG principles, the more expensive goods and services will become across the board.
But this misses critical context around the state of modern global supply chains. Social inequality and environmental crises already make it more difficult — and more expensive — to do business. ESG principles offer a way to manage and reduce that risk, which stabilizes prices over the long term.
Take climate change as an example and what Behar refers to as “climate inflation.” His team at As You Sow aggregates news articles that cover increasing commodity prices tied to climate change. They’ve noted a clear upward pattern over recent years, with the spring heatwaves in Europe that all but decimated Spain’s olive industry among recent examples.
“They had no olives, so olives are more expensive,” Behar explained. “Coffee‘s more expensive, chocolate‘s more expensive, cotton‘s more expensive. Cereal‘s more expensive. The boiling of the planet is really having some impacts on global commodity prices.”
Myth: You can’t invest sustainably unless you’re rich.
Indeed, institutional investors like asset managers, endowments and foundations increasingly use ESG factors to decide where to invest their money. ESG-focused institutional investment is projected to increase by 84 percent by 2026, making up around a fifth of all assets under management.
But you don’t have to be rich to invest sustainably, or to leverage your voting power as a shareholder in support of ESG. Last month, we outlined some simple ways for any and everyone to get involved with sustainable investing if they have the interest — from voting their proxies on individual stocks, to voicing their support for ESG in their 401(k) plans.
“We know we’ve got this vast majority of folks who actually want to vote to get corporations to provide a livable planet,” Behar said. “It’s a matter now of just getting people to talk about it.”
Is your organization ready to implement a corporate social responsibility strategy? Discover the impact of CSR on executive decision-making. By Tim Madden via Newsweek • Reposted: August 15, 2023
Here’s a reality that can’t be denied: the notion of corporate success is being radically reshaped. The financial bottom line is no longer seen as the sole measure of a company’s achievement.
In today’s connected, hyper-transparent world, there’s a growing call on CEOs and leaders to create sustainable, measurable value for shareholders and society.
This shift in mindset has led to the emergence of corporate social responsibility (CSR) as a significant factor in executive decision-making. CSR encompasses activities aimed at achieving social, environmental, and economic benefits while encouraging ethical behavior.
Executives who fail to integrate CSR into their decision-making fabric run the risk of alienating stakeholders, damaging their brands, and eroding their competitive positions.
What Is Corporate Social Responsibility?
Here’s a question: who does your company truly serve, and how?
The answer to this question is at the core of CSR — and may be a bit eye-opening when you consider your own organization. It’s no longer enough for a company to focus solely on generating profits and shareholder value; they must also consider their actions’ social, environmental, and economic impacts.
Corporate responsibility encompasses the idea that companies have a duty to their stakeholders — including shareholders, customers, suppliers, employees, and society — to operate ethically and transparently.
CSR encompasses various initiatives, each of which is anchored by four key tenants:
1. Ethical functioning: Upholding ethical standards across all business operations, ensuring stakeholder fairness, integrity, and respect.
2. Social equity: Fostering social inclusivity and development via diversity programs, support for disadvantaged communities, and human rights advocacy.
3. Environmental stewardship: Adopting sustainable practices to lessen the company’s environmental impact through waste reduction, carbon emission control, and investment in green energy.
4. Community engagement: Participating in community betterment through philanthropy, volunteering, and local event sponsorship, contributing to a company’s external social responsibility profile.
4 Reasons Why Your Leadership Must Adopt a CSR Mindset
While being viewed as a socially responsible business is an excellent growth strategy, there’s more to it than just a good PR move. Here are four reasons why every leader should emphasize corporate social responsibility within their organization:
1. Attracting and Retaining Talent
Potential employees are looking beyond attractive salaries and traditional benefits. They’re interested in their company’s values, seeking employers who share their commitment to positively impacting society.
Recent studies show that three-quarters of millennials are looking into a potential workplace’s environmental commitments when in the market for a job. And once on board, employees proud of their company’s CSR commitments tend to have higher engagement and loyalty, reducing turnover rates and boosting productivity.
2. Building a Positive Corporate Culture
CSR initiatives foster a positive corporate culture. Employees feel valued when companies commit to ethical practices, invest in their well-being, and engage in initiatives for society.
When your internal team is united and inspired by the same values, a positive company culture radiates to external stakeholders — customers, suppliers, partners, etc. This can lead to increased trust in your brand and stronger relationships with all those involved.
3. Strengthening Community Relations
Companies don’t exist in a vacuum — they’re part of broader communities. By investing in CSR initiatives, you also invest in the health, welfare, and prosperity of the community around you.
This mutually beneficial relationship with the community can build trust and goodwill between your organization and its stakeholders, inspiring a more potent connection while helping create economic opportunity in the region you serve.
4. Enhancing Investor Attraction
Here’s another reality: CSR is a growing investor concern. Demonstrating a commitment can attract more investment, improve stock performance, and increase market value. Rather than viewing CSR as an expense, it’s more effective to think of it as an investment in your organization’s future.
Practical Steps to Develop and Implement CSR Strategy From the Top
Developing and implementing a CSR strategy isn’t just a matter of well-intentioned ideas. It requires a structured approach, starting from the very top of the organization:
1. Align CSR with your company’s vision and values: Before diving into specific CSR initiatives, take a step back and look at your current values. Can you easily align your CSR strategy with your company’s vision, mission, and values to create an authentic message?
2. Conduct a stakeholder analysis: Identify and analyze the needs and expectations of your key stakeholders, including employees, customers, investors, and the community. This can help you identify the CSR areas that are most relevant to your business and stakeholders.
3. Set clear and measurable goals: Set clear, measurable goals for your CSR strategy, just like any other business initiative. Track progress, adjust, and aim for targets like environmental impact, employee diversity, or community contributions.
4. Create a CSR team: Appoint a dedicated team or CSR officer to drive your CSR strategy. They’ll coordinate activities, monitor progress, and maintain stakeholder dialogue — with the resources and authority to execute effectively.
5. Communicate and engage: Keeping communication channels open is critical to ace CSR. Keep stakeholders informed about CSR goals, initiatives, and how far you’ve come. Engage them by inviting employees to volunteer, consulting customers on sustainability, and including investors in ethical business discussions.
6. Evaluate and adjust: Assess and adjust CSR strategy by soliciting stakeholder feedback and gauging impact. Continuous improvement is key to a successful, long-term commitment.
Guide Your Company Into a CSR Future
As a leader, developing and maintaining a corporate social responsibility strategy is crucial to propel your company’s success. The more you know about the ups and downs of CSR — including the challenges and opportunities — the better equipped you are to spearhead CSR initiatives.
The goal is to make a sustainable, long-term CSR strategy that lives up to your stakeholders’ expectations and delivers measurable results, now and in the future. Don’t take any risks that could hinder your corporate success — instead, improve your initial strategy, evaluate, and remain flexible.
By Jon Chorley, Contributor via FORBES • August 15, 2023
Organizations today understand the need for comprehensive environmental, social, and corporate governance (ESG) strategies, and many have set aggressive goals for the coming decades. While it’s great to see so many lofty ESG pledges, we are seeing many organizations finding the journey to reduce environmental impact more difficult than expected.
For ESG programs to be successful, there needs to be organization-wide engagement. It can’t just be driven from the top. Creating a sense of responsibility for ESG throughout the business is needed to plan, execute, and track progress effectively. This often requires deep organizational change that can be quite challenging.
With the right education, planning, communication, and technology assistance, engagement flourishes and efficiencies follow. Here are some ways to create more buy-in and a sense of shared responsibility at all levels of the business:
Top executives should create a north star for the rest of the organization to follow. This often starts by clearly articulating the company’s mission and high-level ESG goals, which can then be used to outline priorities for all employees and partners. This guidance and direction must then be operationalized by delegating responsibilities and translating goals into simple, actionable steps for everyone involved.
Proper planning is the connective tissue that enables a company to meet its sustainability goals and drive engagement. These plans start with high-level ESG goals and provide the necessary detail for teams to activate. This will provide the clarity needed for everyone to see the big picture and understand their role within it. Having well thought out and comprehensive plans will also help avoid rash decision making and potential mishaps due to a lack of strong direction.
The supply chain is also an area where lack of planning can lead to significant inefficiency and increased environmental impact. For example, if a company forecasts accurately and plans for spikes in demand, it can work with enough lead time to source from the most sustainable suppliers and use the most efficient forms of transportation. Without strong forecasting and planning, organizations spend more money and create more environmental impact scrambling to get product on air freight.
A powerful example of optimizing transportation and logistics can be found in the multi-national consumer packaged goods company, Unilever. Using intelligent transportation management, Unilever was able to reduce the distance its fleet of trucks drive by 29 million kilometers annually, and reduce carbon emissions by 9 percent.
Operationalize Technology
The right tools and technology play a significant role in executing and tracking sustainability initiatives. Supply chain management solutions and platforms powered by AI and machine learning can be valuable resources in empowering teams of all levels to contribute to ESG initiatives and holding them accountable to the goals. Automating the measurement of ESG initiatives takes tedious work off employees’ to-do lists and ensures accuracy and transparency. For example, a $40 billion insurance company is already tracking and reporting greenhouse gas (GHG) Protocol Scope 1 and 2 emissions and estimating and reporting upstream and downstream (GHG Protocol Scope 3) emissions using an integrated suite of applications that helps automate emissions reporting.
These technologies also enable real-time tracking to help guide the company in the right direction with each important decision. This allows organizations to align on financial and operational goals for ESG initiatives, gaining buy-in from leadership, employees, and business partners to work towards a common goal.
While emerging technology is a critical piece of the puzzle, it’s important to remember that the tools and new processes must be operationalized and integrated into the organization’s systems to ensure optimal efficiency. With new tools, business leaders can empower people at multiple levels throughout the supply chain, HR, finance, and customer experience to play an active role in achieving ESG goals.
While the challenge ahead of us may seem daunting, the potential upside of truly embracing ESG as a core tenant of a company’s mission is huge. Research has shown that people are more likely to buy from, work for, and invest in companies that can clearly demonstrate the progress on ESG initiatives. Helping employees to become more engaged in these initiatives can help the planet and the bottom line.
It’s been a bad year for diversity, equity and inclusion (DEI). Budget cuts and layoffs hit corporate and academic DEI departments hard in 2022. The trend backward comes on the heels of rapid growth in the years prior. And while cuts may be one way for companies to tighten their belts as post-pandemic sales drop, future repercussions will likely bring regret.
Short-term gains, long-term losses
Cuts to DEI may lower overhead in the short term, said Ritu Bhasin, a DEI and leadership expert and the author of “We’ve Got This,” a book about finding belonging. “The problem is that the price tag is greater in the long term.”
Companies face a number of consequences when they focus on immediate cuts to the bottom line instead of valuing diversity and creating environments that are inclusive and supportive of all people. “Creativity and innovation will suffer,” she said. “And they’ll be less able to capture market share.”
Bhasin breaks this down to a matter of talent, explaining that the companies making cuts to their DEI programs will be less able to attract and retain skilled workers. With employees feeling less psychological safety in these spaces, attrition will increase, and those that remain may be more cautious about sharing creative solutions.
Diversity’s positive effects on profitability are well-established. And yet, in addition to slashing DEI departments and programming, quite a few companies are unsurprisingly showing a reduction in new hire diversity since the middle of last year.
Bucking the trend
Fortunately, not all businesses forget the importance of recruiting people from a variety of backgrounds and aligning workplaces accordingly. In particular, consumer-facing businesses are less likely to cut DEI programming, Bhasin said, because they recognize the need to reflect the diversity of their customers.
“Banking isn’t seeing the elimination of DEI either, or it is minimal [in comparison],” she said. This also makes sense, considering that financial institutions serve consumers directly and may have a better understanding of the need to reflect their customer base.
But for industries making the biggest cuts, choosing short-term monetary profit over long-term effects “reflects an overarching underestimate of the importance of DEI,” Bhasin said. “And it demonstrates that it was a performative commitment to begin with.”
What are the solutions to widespread cuts in DEI?
So, what can be done about it? “It’s a tricky, challenging problem,” she said. “The DEI leaders who helped to grow understanding of the need are being cut. Those who raised awareness are being let go.”
DEI and leadership expert, Ritu Bhasin. Images courtesy of Ritu Bhasin
Bhasin doubts employers can be counted on to see the light. “They’re the decision-makers. Who is going to convince them?” she said, noting that perhaps the DEI team or other executives can try. Additionally, employees could choose to leave or become increasingly vocal. “But that’s deeply problematic,” Bhasin said. “It puts the responsibility for change on the community that is being affected.”
She recommends a multi-pronged approach, in which shareholders, clients and consumers hold companies accountable. Depending on the type of business, some groups may have more power than others. With companies that don’t deal directly with the public, it may be up to shareholders, clients and contractors to speak up.
For those that provide consumer products and services, “we can vote by where we spend our money,” Bhasin said. “Stop consuming.” One example of this is Twitter, which has notoriously lost both users and advertisers since billionaire Elon Musk took over at the end of October 2022.
Twitter’s DEI team was decimated upon Musk’s acquisition — reportedly shrinking from 30 positions to just two. And while that is not the only reason for the drastic drop in Twitter advertising, it certainly has a huge impact. The social media site lost nearly half of its marketing revenue as it became a bastion for brazen biases and vehement hatred.
But for all the talk of waning sales and falling profits, overall, corporations are still raking in the dough. While corporate windfalls have not continued at the rate they did in 2021, they remain astronomical when taken into long-term historical context. As such, cuts to DEI program budgets and staff are not only unnecessary, but they are also incredibly unwise. It will ultimately take all of us to set things right.
By Yusuf Amdani, Forbes Books Author via Forbes.com • Reposted: August 12, 2023
While 90% of executives state that sustainability is important, not as many are acting on green policies, according to the report “Investing For a Sustainable Future” which appeared in the MIT Sloan Management Review. Only 60% of companies have sustainability strategies in place. Without a green vision at the top, operational levels run the risk of using more resources than needed in everyday practices.
It may be a question of time: the world’s population grew from 2.3 billion in 1937 to 7.8 billion in 2020, per the Green Business Bureau. With more people, the carbon in the atmosphere has increased from 280 parts per million to 415 parts per million during that same timeframe. Globally, organizations are recognizing the need and searching for a solution to become more earth conscious.
Those interested in funding businesses are just as interested in sustainable solutions, with 85% of investors considering environmental, social, and corporate governance (ESG) factors as they make decisions, according to Gartner research. Among banks, 91% monitor ESG performance of investments. These groups see that consumers are asking for green strategies and that sustainability can lead to long-term profitability and performance.
Setting the tone for both current and future generations begins with effective, ongoing efforts that coincide with the U.N.’s Sustainable Development Goals. These outline actions for all countries—both developed and developing—to carry out in a global partnership. When businesses step up and implement changes, others will take notice and be ready to join in.
Here are some of the proven sustainable practices that can generate business:
1. Opting for Renewable Energy
In developing countries, the infrastructure may not support 24/7 electricity in every town and village. For companies that depend on uninterrupted processes and timely deliveries, putting in a solar-powered system could be the answer. Drawing from the sun’s rays to produce and circulate energy, operations can continue while simultaneously lowering electricity costs. Companies that lean into renewable energy will also benefit from the opportunity to show shareholders and customers that they are actively working to reduce their carbon emissions.
2. Sourcing Recycled Materials
Switching from ready-made supplies to recycled fibers in a textile plant can have a significant impact. Waste is reduced, products are manufactured with repurposed materials, and customers can join the cause by purchasing finished items. Among Gen Z shoppers, the up-and-coming consumer demographic, 73% are willing to pay more for sustainable products, per a report from FirstInsight. Looking for ways to recycle materials within a plant can lower manufacturing expenses and enable companies to prepare for upcoming regulations.
3. Promoting Plants and Nutrients
By 2030, the Amazon rainforest is predicted to be downsized to such an extent that it will not provide enough water to support its plant life, as reported by the Green Business Bureau. While companies can certainly fund reforestation campaigns, they can also start their own—right in their backyard. Industrial parks may have spaces where they can plant new trees and house a nursery. New flowers and trees could be distributed among the community. Organizations can also look for an area to carry out composting efforts like the Bocashi method, which yields organic fertilizers that can be used on plants.
Sustainable practices that deliver results, including reduced costs, greater efficiencies, and higher levels of well-being among workers, will be the drivers of tomorrow’s companies. To be prepared for heightened awareness and regulations surrounding ESG, organizations will do well to start today. Looking at what can be done and taking small steps can lead to long-term results and a lasting presence.
A new economic reality has arrived. It came how they often do-gradually, then all at once. Leaders who’d gone all in on rapid growth are downshifting to focus on short-term viability.
All the sudden, quarterly financial goals loom larger. Long-term projects slide to the back burner.
Unfortunately, this atmosphere puts corporate social responsibility programs (CSR) at risk. But abandoning CSR when the market gets volatile is like tossing your compass overboard when a storm blows in.
The truth is: markets might be changing, but expectations are not. All the reasons a CSR program made good business sense last year are even more valid now. Both consumers and employees have high expectations when it comes to social impact, with more than 70% of consumers interested in how brands are addressing social and environmental issues and 60% of employees choosing where they work based on their values. And they are all watching to see how brands respond to the current market.
Plus as the recent report from Deloitte highlights, environmental and ethics regulations continue to add pressure.
If anything, this is not the time to abandon your CSR mission. It’s time to double down. Because you don’t change course when the seas get rough. You get more strategic. Here’s how.
Respond to reality, not headlines
It’s true that the market is shifting for many high-growth, high-profile companies, but the headlines don’t tell the whole story. There are a whole lot of businesses still quietly growing and innovating-they’re just not on the front page right now.
As with much public storytelling, the loudest voices are the ones that make sweeping, dramatic proclamations about where things are headed. Look at the recent conversations around quiet quitting and the shift to remote work. For a while, everywhere you looked, someone was making a new exaggerated claim about the future of work. Reality tends to be more nuanced than headlines would suggest.
It’s also important to understand the long arc of social progress. Equity, diversity, justice, and sustainability are not achievable as quarterly goals. They take a sustained, coordinated effort. Candidly, if our commitment to making meaningful change wavers every time the market dips, we don’t stand much of a chance.
Strengthen the ties between CSR and business objectives
In the same way that a volatile market can expose the cracks in a business strategy, these fluctuations also provide a stress test for your CSR strategy.
If company leaders have been treating CSR programs like pet projects, that has to change now. Corporate purpose is an essential business initiative. It needs to be planned and resourced as such.
To be effective, CSR programs need to be strategically integrated with other business initiatives. If you haven’t already, now is the time to tie your CSR mission clearly to business goals.
For example, Splunk, a data company, focuses a good portion of their CSR work on bridging the data divide-the gap between those who have access to the internet, computers, and technical skills, and those who don’t. The mission is a natural extension of their business strategy and it leverages their greatest strengths as an organization.
As part of the Impact Studio Conference, Patricia Toothman, the social impact manager at Splunk, talked about linking the pillars that support business and social impact work: “Connecting all of those pillars and really working towards our overall mission of bridging the data divide, that’s our new BHAG-our Big, Hairy, Audacious Goal. And that’s our North Star as we’re evolving, iterating, and creating new programs.”
As you advocate for your programs, be sure to connect them to your own North Star. And make an effort to explicitly tie your work to broader company objectives such as:
Employee satisfaction
Brand loyalty
Retention
Professional development
Customer engagement
Strategic partnerships
Revenue
Measure the full value of your CSR programs
In times like this, it’s easy to get locked in on the black/red dichotomy of money in/money out. When it comes to measuring the true value of your social impact programs, don’t get stuck here.
Look at the full range of outcomes that your program contributes to. Alongside the internal outcomes around company culture and employee engagement, the impact of your programs extends into the community. In 2021, corporate giving accounted for over $21 billion of support for charitable causes.
In the past, the effect on communities was considered more a feel-good aspect of CSR. But recent events have reminded all of us how interconnected community and business are. Larry Fink’s letter is proof that the most successful corporate leaders are the ones who understand the full ecosystem that their business exists within. In reality, when the community thrives, businesses do too.
CSR and ESG initiatives also help your business future proof. Rather than reacting to new social and environmental regulations as they happen, you’ll be proactively planning for them. In the long run, a gradual, intentional approach to these changes is good for everyone. Even investors are prioritizing ESG compliance.
Kari Niedfeldt-Thomas, managing director of corporate insights & engagement for CECP, explains how CSR can help you future proof this way: “Companies for generations were focused around what shareholders wanted. And shareholders sometimes were only concerned about the short term. They wanted to be able in the short term see a company increase their profits to a point, see the stock go up so they could sell. They weren’t there for a long-term model. Yes, maybe the company is meeting all minimum regulatory standards, but they’re not necessarily looking at a net-zero future of where the market is potentially headed and where they have to be prepared to operate as a business when the rules might change.”
When company leaders cut CSR programs, they are sometimes focused on the operational costs they’ll save. But you have to take into consideration the costs and the damage to the brand and the community. Revealing your company to be a fair weather ally is a particularly bad look. Plus, if market forces are impacting your business, odds are nonprofits and community members are feeling the squeeze too. Pulling back support now will be extremely destabilizing.
Setting up the infrastructure and partnerships to support your CSR work and then dismantling them can be like taking one step forward, then two steps back.
Find opportunities to innovate
It’s true that the current economic pressure might force you to shift how you provide support to community organizations. It’s time to think outside the box. If you don’t have the resources to fund the same level of grants or donations you’ve done in the past, consider other avenues of giving such as:
Employee giving & matching: Set up a fundraising campaign to encourage employees to donate.
Volunteering: Organize volunteer events to give nonprofits additional capacity.
In-kind donations: Donate your products or services directly to a nonprofit.
Marketing & advocacy: Use your platform to spread the word about an organization and its cause.
As much as this moment tests your commitment to social impact, it will also reveal a lot about your relationships with your nonprofit partners. Do you know what they need? Or do you at least know how to ask what they need?
If you’ve just been writing checks, now is the time to pivot and start building a deeper relationship. Think of the organizations you work with as true partners. Invest time in seeking their feedback and learning how you can better support their work.
This moment also calls for efficiency. Teams will be doing more with less. Case and point: many DEI teams are being cut, but if you look closely, many companies are not backing off their DEI goals. Do everything you can to streamline and centralize your CSR processes to put your team in the best position to deliver results.
Come out stronger on the other side
Like many moments of adversity, this is a chance for your team to weather the storm and come out stronger and wiser on the other side.
As belts tighten and business leaders get even more obsessive about ROI, there’s intense pressure for CSR professionals to make programs as compelling as possible. Now is the time to shore up your strategy.
The big upside of this pressure? Leveraged in the right way, this intensity can shape your social impact programs to be more effective, more efficient, and more ingrained with your business.
For those in the business of social impact, there may be a storm to weather, but the future is bright.
Anti-ESG agitators are telling a story that’s both inaccurate and bad for business. And silence won’t deter further attacks — though it certainly could compromise long-term brand value. By Sandra Stewart from Sustainable Brands • Reposted: August 5, 2023
It might be tempting for purpose-driven companies to think of the “woke capitalism” smearas just a warmed-over meme — a bit of foam-flecked trolling sure to dissipate as soon as the cloud of performative outrage clears.
But that’s a dangerous dismissal. Right-wing agitation against corporate commitments to improve environmental, social and governance performance already has had a negative effect. The SEC’s long-anticipated rule on disclosing greenhouse gas emissions may be watered down following Republican complaints about “woke capitalism.” And it’s not just bureaucrats who are backing away: BlackRock CEO Larry Fink, not long ago a vocal proponent of stakeholder capitalism, is in full-fledged retreat.
Many corporations seem inclined to follow Fink’s “Don’t say ESG” strategy. Fortunereported that at a recent gathering of 40 ESG executives, most said they are abandoning the term but “doubling down” on ESG-related initiatives. But it’s hard to see how this can work. Anti-ESGers are not just coming for the words; they’re coming for the substance. And that’s a brand threat companies can’t just wait out.
The anti-woke crowd is advocating ‘backward capitalism’
The impulse to duck and cover is understandable — no one wants to present themselves for a pitchforking. But agitators are telling a story that’s both inaccurate and bad for business; and it’s time to talk about the dark, retrograde vision implicit in their critique.
Take the anti-woke crusaders’ rhetoric and proscriptions to their logical conclusion and you get a business and finance world clinging to the past, sleeping through the present, and insensible to the future. Call it “backward capitalism.” This is an economy in which fossil fuels rule (Backward capitalists are keen to shore up investment in oil, gas and firearms with anti-ESG state laws — even if they cost taxpayers and retirees hundreds of millions of dollars) — with polices that accelerate climate disaster, poison the air and water, and destroy vital ecosystems; where workers are poorly paid and unprotected (child labor already is making a comeback), and crony-ridden governance structures enable and obscure it all.
The anti-woke contingent isn’t just targeting what they perceive to be a few excesses. They dismiss the mainstream view of ESG assessment as a smart risk-mitigation strategy and flat-out reject the idea that businesses should consider anything but short-term profit. They claim that “woke” corporations are imposing environmental and social initiatives on a society that doesn’t want them. But this is the opposite of the truth: “People say business should do more, not less, to address issues like climate change, economic inequality and workforce reskilling,” the 2023 Edelman Trust Barometerfound — echoing years of similar results. Shareholders have driven adoption of ESG reporting, more intentional investments and governance improvements; while employees and customers have spurred action on social and environmental issues.
Stand up for ESG, corporate responsibility and stakeholder capitalism
Ignoring sound business strategy and clear, consistent demands from core stakeholders isn’t typically a pathway to long-term success. And silence won’t deter further attacks — though it certainly could compromise long-term brand value. The rising ranks of workers, entrepreneurs and investors are not going to follow the backward capitalists into the 19th century; they’ll reward brands that can credibly point to a promising future. The best strategy in this contentious moment is not to hide ESG commitments, or even to defend them — but to actively make a positive case for them.
Corporations whose ESG assessments serve primarily to reveal risks and identify potential mitigations should say so, in every context where they mention ESG actions. Those that have made positive social and environmental performance a core aspect of their brand should promote the measurable impact of significant initiatives and make public commitments to continuous improvement. And the activist businesses that have led the B Corp movementand other efforts to use business a force for good should make an affirmative case for fully embracing stakeholder capitalism.
Broadly implemented, a stakeholder approach can produce declining environmental impacts; activate efforts to mitigate climate change and regenerate ecosystems; solidify living wages and hiring practices that draw from and support the whole talent pool; and foster governance that prioritizes transparency, accountability and net-positive impact. That’s a vision for a world most of us want to live in — so, we must stand up for it.
An estimated 7.6 million young people have taken part in Fridays for Future protests in support of climate action, like this 2019 demonstration in Zürich, Switzerland. But protesting isn’t the only way for people to make their voices heard. Photo: Tom Seger – Upsplash
By Mary Mazzoni from Triple Pundit • Reposted: August 4, 2023
The anti-ESG movement, led primarily by a small set of right-wing politicians and pundits, continues to target the use of environmental, social and governance factors in investing. The pushback against ESG and “woke capitalism” is set to be central in the next U.S. presidential election cycle, with critics ramping up the discourse in advance.
Still, the public appears uninspired by the far-right’s latest bogeyman, with only about 35 percent of U.S. voters viewing “woke ideologies as a ‘major threat’ or a ‘very important’ issue when thinking about their 2024 vote,” according to July polling from Morning Consult.
Those growing tired of the anti-ESG discourse don’t have to resign to simply tuning it out. We spoke with Andrew Behar, CEO of As You Sow, a nonprofit foundation that promotes shareholder advocacy, about powerful ways everyday people can voice what they really think about ESG and the shift toward more sustainable and socially responsible ways of doing business.
Take action: Counter anti-ESG narratives by learning and sharing
The much ado about anti-ESG may not have the effect critics intended. While the majority of the public remains ambivalent, anti-ESG criticism has also sparked new conversations where there were none before. “The good news is there are tens of millions of people who’d never heard of ESG who now have heard of it. They’d never heard of sustainable investing — they didn’t know you could invest sustainably,” Behar said. “Now they’re aware their investing has an impact. And actually a lot more people are coming to ESG investing because of it. I think it’s really backfiring.”
Still, anti-ESG narratives can create confusion about what ESG criteria are actually meant to do. Last year, As You Sow launched the AmplifyESG content library to counter the misinformation about ESG online. It’s curated by an editorial review board that includes representatives from business and both U.S. political parties, Behar said.
Hosted on Hootsuite, the library is updated at least a few times a week with articles, quotes, videos and other resources about ESG, which users can easily share across their social media platforms as they choose. Shares from AmplifyESG have reached nearly 3 million people over the past year, and anyone can get involved in driving more evidence-based conversations about ESG in business.
Take action: Leverage your right to vote
No, we don’t mean at the ballot box. Of course that’s important, too, but in this case we’re talking about the proxy voting rights afforded to everyone who owns shares in a publicly-traded company. “If you’re an individual who has bought shares on E-Trade or Schwab or Robinhood or whatever, you have the right to vote — even if you own just one share,” Behar said. “And that vote is very, very important.”
An estimated 25 percent of all shareholders do not exercise their proxy votes, he explained. “If those 25 percent decided to get off the bleachers and get on the playing field, that makes a big difference. That makes the difference between a majority vote or one that’s just under the majority line.”
But exercising the right to vote by proxy is traditionally not a user-friendly process for individual shareholders. “It’s always been difficult,” Behar said. “Generally you get an email that says, ‘Time to vote.’ But when you look at the ballot, there’s 20 or 30 decisions to make. Who’s on the board? How much do the executives get paid? Who’s the auditor? What about all these shareholder resolutions? It’s very complex.”
As You Sow has published annual proxy guidelines for decades, outlining votes they deem to be aligned with ESG principles. Three years ago, it automated the process by embedding its guidelines into Broadridge Financial Solutions’ ProxyEdge platform for institutional investors. The paid service allows institutions like asset managers, endowments and foundations to vote in an ESG-aligned way in only a few clicks. They can also customize their votes from As You Sow’s defaults as they choose.
This year, As You Sow went a step further with a free service for individual investors at AsYouVote.org. “You can now redirect that email so we will automatically fill in the ballot,” Behar said. “It’ll all be filled out in an ESG-aligned way, and you can make adjustments.”
This simple shift allows individual shareholders to move from being overwhelmed by proxy voting emails to automating the process of voting with their values, with the option to customize if they’d like. “I think a lot of people feel guilty. They see all these proxy statements piling up in their inbox and they think, ‘I just can’t deal with it.’ What you’ll get instead is, ‘Thanks for voting.’ You’ll feel great about yourself, and it takes literally two minutes to set up.”
Take action: How mutual fund and 401(k) investors can make their voices heard
Traditionally, people who invest in funds rather than individual stocks have a much harder time making their voices heard come proxy season, but this is beginning to change thanks to new technology.
“If you own shares in a mutual fund, you have the right to vote. Right now, you have abdicated that right to Vanguard or BlackRock or State Street or whoever, and they’re voting on your behalf. They’re probably not voting the way you like,” Behar said. “You might want to vote for a livable planet. You can demand that. You can say, ‘I want that vote,’ and they will give it to you. It’s very new. The technology is just unfolding.”
Technology advancements mean that individual mutual fund investors can vote their own proxies, with the fund manager voting in alignment with the aggregated results at a company’s annual shareholders meeting. This is known as pass-through voting.
In April, As You Sow linked up with the cloud management company Iconik to make this option available to investors in an S&P 500 mutual fund. Hundreds of investors have already taken advantage of it, Behar said, with more funds on the horizon. “We’re now in conversations with every other proxy voting service,” he said. Broadridge Financial Solutions, a major tech provider for institutional investors, is among those working with fund managers to make this option available to their customers. Get in touch with your fund manager to see what options you have.
Similarly, those who invest in 401(k) plans through their employers also have the right to vote by proxy, but they need to reclaim it from the fund managers associated with their plans. “If you’re in a 401(k) plan — where you probably own a target date fund, which is a fund of funds — you’re going to need to go to your plan administrator and say, ‘I want to vote.'”
If employees band together to ask for their vote, the employer can decide to work with the fund manager to make the option available. As You Sow is in talks with employee-organized groups at companies including Google and Microsoft, who want to leverage the voting power associated with their 401(k)s.
The bottom line: You have more power than you think
Counter to the anti-ESG narrative, most people want to see business operate sustainably, with 99 percent of millennial investors, 82 percent of women and 72 percent of people overall saying they would choose to vote their proxies with sustainability in mind, according to polling from As You Sow.
“We know we’ve got this vast majority of folks who actually want to vote to get corporations to provide a livable planet,” Behar said. “It’s a matter now of just getting people to talk about it and say, ‘Okay, I’ll do that. I’ll click that.'”
Where market forces are already driving business closer to ESG principles, everyday people realizing and claiming the power they hold could open the floodgates.
“People abdicate their power. The way people give away their private personal information to Facebook, they abdicate the power of their money to Vanguard, State Street and BlackRock. It’s amazing. People give away all their power and all their information for nothing,” Behar said. “We have a culture where people look at things like climate change and think, ‘There’s nothing I can do.’ No. You have so much power. You just choose not to use it.”
Patagonia founder Yvon Chouinard captured headlines and received accolades last year when he announced that the outdoor retailer would begin donating nearly the entirety of its profits to fighting climate change. In that same vein, an October 2022 IBM study found that 73% of respondents considered sustainability when shopping.
Both of these speak to broader trends in the way consumers are viewing corporate responsibility, particularly when it comes to environmental concerns.
How can companies respond to shifting consumer values to get ahead of both competitors and economic headwinds? Based on the 3 P’s of sustainable businesses(planet, people and profit), brands need to demonstrate transparency around ongoing sustainability efforts, engage customers in genuine conversations about what matters to them and craft engagement-based loyalty programs that recognize and reward shared social values. Here are three ways brands can accomplish this.
Communicate Tangible Impact On The Planet
Consumers don’t just want to hear “sustainability” as a buzzword. They want to see the concrete actions companies are taking to achieve it.
Brands like Cotopaxi provide a template to follow. Rather than hiding behind the vague “greenwashing” language media-savvy consumers know all too well, the company provides transparency into its sourcing partners and factories globally as well as the sustainability efforts at these factories and carbon offsetting for bulk shipping.
Brands still in the midst of their own sustainable transformation can also highlight the actions they’re taking to achieve the environmental objectives consumers value. Athletic wear brand Allbirds, for example, notes on its website the sustainability goals the company aims to meet by 2025, how Allbirds falls short of them now and the steps the brand is taking to meet them by its own self-imposed deadline.
Much like many companies themselves, consumers are going through their own green transformations and understand that such efforts take time. Rather than penalizing brands with less-than-ideal carbon footprints, consumers will likely reward transparent companies making an earnest effort to attain sustainability—even if they’re not there just yet.
Engage Customers In Sustainability Conversations
Rather than waiting for consumers to come to them, brands should attract the sustainably minded with content that speaks to their needs and goals.
Proactive sustainability brands can create informative and entertaining content that educates and engages consumers by leveraging the full power of their digital marketing channels. Patagonia uses an interactive webpage to illustrate the negative impact the clothing industry has on the environment and showcase the actions it’s taking to remedy it—including recycling materials, growing its own organic cotton and selling used gear at a discount to keep it out of landfills. As a result, consumers gain a clear understanding of how the company aligns with their values and what Patagonia is doing to achieve its sustainability goals.
Brands that engage their customers in conversations about sustainability are able to clarify the ecological topics consumers care about while also proactively guiding them toward products that align with their values. By taking an active role in their sustainability education, companies can establish trust with consumers and reinforce their own sustainable value proposition as they work to change old purchasing habits for good.
Reward Customers For Shared Values
As consumers set their sights on companies and products that share their environmental values, brands that reward them for their sustainable purchases have the chance to attract—and retain—both new and old customers.
One of our customers, Back Market, has developed a business model that not only drives sustainability and circular economy but also drives profits with the Gen Z audience that cares about reuse.
With the constant emergence of new technologies and the consumer desire to always have the latest and greatest device comes many gadgets that end up in a landfill. Back Market was created to help reduce all this e-waste. Sellers can quickly and easily get rid of the “old” gadgets they don’t want anymore, and buyers can grab gently used, high-quality gadgets for a great price.
Loyalty programs tied to sustainable purchases encourage consumers to make the shift toward eco-friendly products and provide an incentive to keep doing so in the future. Customers also develop a greater sense of commitment to the brand, which they see as a reliable vehicle for attaining their own sustainability goals. By rewarding customers for making purchases that align with their shared values today, companies become trusted partners they’ll turn to when making more in the future.
Through marketing efforts that reflect consumers’ identities and reward them for acting on their values, brands can form meaningful bonds with customers and turn them into lifelong patrons. As consumers continue to positively interact with the brand, they encourage others in their network to do so as well and foster new customer relationships—creating a virtuous cycle.
Through targeted rewards programs, brands can ensure the health of not only their bottom line but the planet as well.
Privatizing space could bring immense benefits to humanity, but is the industry thoughtfully considering the impact of emissions, space debris and employee well-being? By Vartan Badalian via Greenbiz.com • Reposted: August 2, 2023
In 1962, President John F. Kennedy gave one of his most historic speeches as he catapulted the U.S. into the space race against Russia. His words still hold immense passion and foresight today: “We set sail on this new sea because there is new knowledge to be gained and new rights to be won… We choose to go to the moon in this decade and do other things, not because they are easy, but because they are hard.”
In the short time humans have focused on space, we have landed humans on the moon, studied the deepest parts of the galaxy and privatized the industry. Right now, you can even pay as low as $257,000 on SpaceX’s website to ship your cargo to space.
At the same time, however, this great desire for space exploration is driving concern over short-term environmental and social impacts.
The problem with space
The sustainability challenges associated with space exploration and other commercial activities fall into three categories:
The emissions produced from launching spaceships;
The space junk that is quickly increasing and floating in Earth’s orbit; and
Potential harm to known or unknown species, along with human/employee rights concerns.
The space industry is truly different when it comes to measuring or assessing issues such as these, according to Paul Holdredge, director of industrials and transport at consultancy BSR.
“The industry is talking about sustainability, but they’re not yet using the same language that you and I might use,” Holdredge told me. “Many of the ESG rating systems, questionnaires, methods of evaluating companies — they frankly don’t apply to the space industry.”
The launch emissions
Consider the process of sending rockets into orbit. “There are a great number of launches forecasted, and the impact of those emissions in the upper atmosphere from various rocket chemistries is still not well understood,” Holdredge said.
While the percentage of fossil fuels burned by the space industry is 1 percent of what is burned by aviation, the fear among experts is that the emissions impacts of launches on the upper atmosphere and ozone layer are still widely unknown, especially as the frequency of launches increases. Also concerning is the fact that emissions have a tendency to linger longer.
Commercial space companies are driving a $500 billion industry right now, growing about 9 percent per year. That puts the sector on a path for about $1 trillion by 2040, according to Holdredge. This growth will bring an increase in spaceship launches, across both the private and government sectors. In 2022, 180 successful rocket launches happened, 44 more than in 2021. Much of this growth is led by Elon Musk’s company SpaceX, which launched a rocket once every six days on average. That doesn’t account for the impact of launches by two other high-profile private space companies, Blue Origin and Virgin Galactic.
Emissions reductions could come in the form of less carbon-intensive fuel chemistries — but that will take ongoing research and development. Other solutions that could help decarbonize the industry include a carbon nanotube space elevator that stretches into space, allowing for a more cost efficient and less energy intensive way to travel. Almost like a transit system but into space. But as this article points out, by the time we are able to build a space elevator, it might not be necessary given how quickly commercial space exploration is evolving.
Littering in space is the status quo, for now
A big concern beyond emissions is orbital litter. More than 25,000 pieces of space junk and debris larger than 10 centimeters are floating in Earth’s orbit, according to the World Economic Forum.
This junk includes anything from components left behind during launches to decommissioned satellites to other objects and chunks of material caused by asteroids hitting satellites or satellites hitting each other. Over time, this debris builds and floats in orbit, a concept known as the Kessler Syndrome. The fear is that this growing cloud of stuff could pose a danger to launches over time. Last year, SpaceX had to issue a statement amid concern by the National Aeronautics and Space Administration that SpaceX’s Starlink satellites might cause a collision with the International Space Station.
The solution to space waste? Several companies and early-stage startups such as OrbitGuardians and ClearSpace focus on debris retrieval and removal. The work of the Space Sustainability Rating, launched by the World Economic Forum and developed by a group of industry players including the European Space Agency and Massachusetts Institute of Technology, is also a source of potential solutions.
The system offers recommendations for how aerospace companies can improve the long-term sustainability and longevity of their launches and satellite design, as well as address debris mitigation. The rating is based on a four-badge system from bronze, silver, gold and platinum.
Other aspects of sustainability
Aside from environmental factors, Holdredge said companies must increasingly consider the human impacts of space exploration. Among the concerns they’ll need to consider: how to take care of employees working in space; how to feed them; howto care for their waste; how to protect them from radiation; and more. These issues fall under the umbrella of human and employee rights.
As we colonize other planets, what rights must we consider for other potential life — known or unknown?
Human-driven climate change is causing the extinction of species on Earth that we have little knowledge about. We should strive to avoid bringing about the same harm to other planets.
According to Forrester, most U.S. consumers place the responsibility of protecting the environment on companies. Two-thirds want more transparency on business practices. And study after study shows that consumers want to be more environmentally responsiblein their buying habits.
Why, then do most e-commerce sustainability efforts fail to put a dent in the problem?
Decades of rapid e-commerce growth have taught us that consumers want to consume, and merchants are more than happy to feed them goods for revenue and profit. There’s a lot of lip service around sustainability, but at the end of the day, the desire to get more things faster often overcomes many of the best sustainability intentions of both shoppers and merchants.
Why? Because e-commerce sustainability is impossible unless it is commercially viable.
For sustainability to work, it must be good for the business, desired by the consumer and good for the planet. Here are some practical—and commercially viable—ways for e-commerce brands to improve their environmental footprint.
That said, research shows that most consumers are misinformed about what is actually recyclable and misunderstand recycling practices. Merchants need to educate consumers on how to recycle or compost packaging to make sure it happens. There’s also an opportunity to promote programs and practices with branding and clever marketing on the packaging itself.
Improve data analytics to stop overproducing.
According to the United Nations, the fashion industry alone accounts for 2% to 8% of global carbon emissions, and textile dyeing is the second largest polluter of water. Tastes and desires are fickle, and so much of what is produced (clothing, food, etc.) is ultimately wasted or sold for pennies on the dollar. Industries like fashion have long over-produced in efforts to have “everything they might need” to meet this fickle demand.
The fashion industry is just one example of how quick it is to manufacture goods but how hard it is to understand and meet demand. With more advanced AI, analytics and personalization technologies, however, it’s possible to better understand consumption. Accurate demand forecasting is one of the best things you can do to improve every aspect of your business (scale, cost, lower returns, etc.) and reduce environmental waste.
Ensure the price is right.
For years, data has shown that consumers are “willing” to pay more for sustainable products. But dig a little deeper, and you’ll see just how powerful decades-old commercial forces can be in hindering sustainability.
With the arrival of the recession, the number of consumers willing to pay more for sustainable products shrunk by 16%. Quality and price still lead consumers’ considerationswhen making purchasing decisions in good times and bad. Both are twice as influential as sustainability in making purchases. The price has to be right for the quality of the goods provided, regardless of operational practices.
Elevate the product with sustainability.
If price and quality are more than twice as influential as sustainability in buying decisions, then use your sustainability practices to elevate the quality of your goods and the brand behind them.
Outstanding goods capture a premium price, attract new shoppers and build brand loyalty. Patagonia is a great example here. It’s a “gold standard” in outdoor clothing and quality and also happens to be environmentally sound.
Tesla is another great example, with a premium-priced electric car that has excellent range, has better performance than the average gas vehicle and is supported by a great charging network. Remember that Tesla launched a luxury sports car, which set the tone for the brand. Consumers expect Teslas to provide a superior driving experience that they can feel good about.
Share your sustainability story.
Online searches for sustainable goods have increased by 71% between 2016 and 2021, and influencer mentions of sustainable fashion have boomed in recent years. Sustainability is now a critical ingredient of a good brand story, especially for younger buyers. Integrate this into your marketing and build it into your brand story.
But if you’re not actually doing some of the things I’ve outlined above, then you’re just greenwashing, and that storytelling goes from a strategic advantage to a liability. Buyers won’t hesitate to post your bad practices across their channels.
Create a personal and frictionless experience for shoppers.
Far too often, companies dedicate a lot of resources to sustainable practices, only to mess up the last mile. Getting traffic and buyers is the first step, but you have to make it easy for consumers to find what they’re looking for, especially with a younger, more environmentally aware audience.
I’ve written about removing friction from e-commerce in the past, and that applies to all aspects of buyer intent, including sustainability. Promote the products clearly. More importantly, incorporate sustainability with all the other data points (geography, referral site, device, time, weather, etc.) for a full, accurate and personalized journey.
So many environmental efforts come to the table with the best intentions, only to be tripped up by the realities of commercial operations. By adding a commercial lens to your sustainability endeavors, you do what’s good for the planet and what’s good for your pocket. And that’s good for everyone.
By Kathryn Unger from Triple Pundit • Reposted: August 1, 2023
As Earth’s temperatures continue to rise, it has become evident that protecting the planet will require global cooperation and direct action across every single industry. The healthcare industry is no exception. Indeed, the connection between environmental health and human health underscores the importance of the medical community’s role in reaching net zero carbon emissions.
The healthcare sector contributes an estimated 4.5 percent of global emissions. Some of these greenhouse gases are produced from healthcare facilities; others are the result of the industry’s supply chain of goods and services. Yet when it comes to climate change, the healthcare industry must go beyond focusing on treating the health conditions resulting from environmental degradation — and increasingly, we’re seeing industry starting to shift toward helping to prevent those health conditions by addressing climate change itself.
Boston Scientific is among those medical technology companies working to reduce emissions. Our ambitious effort will involve reevaluating every aspect of business and making changes to support achieving net-zero emissions along the company’s entire value chain. This work represents a considerable challenge, and one whose time has come.
“Climate change will affect almost every human disease in some way,” says Dr. Kenneth Stein, chief medical officer. “For those of us in the healthcare industry, who are dedicated to improving health and patient outcomes, that’s a worrisome thought. But we can apply our considerable innovative skills toward becoming part of the solution.”
Fortunately, we have a couple of important factors working in our favor. They are ingredients which, I would suggest, every company needs to succeed in meeting its ESG goals: A thoughtful, realistic, and science-based sustainability plan in development, along with full-throated support for our initiative at every level of our organization.
Making the business case for sustainability in healthcare
Within the medtech sector, some sustainability changes involve tracing products back through the supply chain to reimagine the way those products are sourced, manufactured, packaged and shipped. Doing so is a significant undertaking – so much so, that if an organization doesn’t have a clear understanding that its sustainability goals are in line with a clear mission to improve health outcomes, it might shy away from the challenge.
Paudie O’Connor, senior vice president in charge of Boston Scientific global supply chain, points out that for that reason, it’s important to dispel myths that there is tension between the two goals. “There is no reason why we can’t further healthcare to help decrease the plight of human suffering, and work to improve the environment at the same time,” he told me.
In fact, Boston Scientific was the first medical device company to commit to carbon neutrality within its manufacturing network, as well as to receive approval for its net zero target by the Science Based Targets initiative (SBTi), an international organization that provides clear guidance for reducing greenhouse gas emissions in line with the latest climate science.
Already, we’ve made progress toward carbon neutrality goals by shifting our electricity sources in the U.S. and Europe to 100% renewable electricity – contributing to 76% renewable electricity across our global manufacturing and key distribution sites – putting us on track for 100% renewable electricity worldwide by 2024 in our manufacturing and key distribution sites. All are important milestones on the path to achieving the company’s net zero emissions target across the entire value chain by 2050.
However, some sustainability goals are more complicated. For instance, physicians and patients need medical products that are sterile, safe and reliable – and those standards are highly regulated. Now, teams must consider the environmental footprint of products at every life cycle stage, from design, sourcing, production and distribution to waste disposal and recycling.
“We spend a great deal of time thinking about how we can structure our supply chain to support growth and environmental sustainability,” O’Connor says. “For example, thinking of ways to reduce packaging, digitize instructions for use, target sterilization practices and use strategic modes of distribution.”
Shipping is a good example. Medical device manufacturers have long shipped products to their destinations by air as a matter of convenience and, importantly, speed, so that devices are always available for patients who require immediate intervention. “Our supply chain has a purpose statement: ‘delivering for patients,’” says O’Connor. “Getting high-quality products to patients when they need them.”
Rail and maritime transport are far more carbon-efficient than air transport, but take longer; for example, a product that takes four days to get from Costa Rica to Boston by air may take 14 days by boat and rail. Thus, in switching to moving products by land or sea to key distribution hubs, a company must carefully reexamine the timetables by which products are sent and adjust them accordingly. Mapping out such thoughtful, deliberate changes can result in meaningful carbon reduction, making the effort well worthwhile.
Tackling environmental challenges for better health
This is one of the biggest challenges that the global population has faced, let alone the healthcare industry. But by viewing environmental sustainability as a step toward improving human health, the goals of both the medical community and those of global supply chain teams can come together as one. I believe that such a holistic view is precisely the way to frame the important sustainability work ahead of the healthcare industry. Dr. Stein agrees: “To reduce healthcare disparities, we can’t ignore how environmental and climate changes will affect health, especially for society’s most vulnerable.”
There is so much more work to do to continue to advance our collective efforts to contribute to a healthier planet. Regulations are increasing and evolving. Customer expectations are evolving. Science is constantly evolving and changing the things that we can accomplish for our customers and patients. But the industry is making meaningful changes — and by holding ourselves and each other accountable, we can accelerate progress and achieve more together.
A new study finds three-quarters of consumers wish to live more sustainably, with convenience and affordability the main impediments. By Tom Joyce from fruitnet.com • Reposted: August 1, 2023
Nearly three-quarters of consumers want to live more sustainably, according to a new report commissioned by Alibaba Group, but inconvenience and high costs were seen by shoppers as the biggest barriers.
The Sustainability Trends Report 2023, which polled more than 14,000 consumers from 14 countries across Asia, Europe and the Middle East, found that convenience (53 per cent) and affordability (33 per cent) were “critical for driving behavioural changes on consumer sustainability”.
Businesses, the report concluded, could make it easier for consumers to make sustainably conscious choices.
“Making sustainable products more affordable (61 per cent), making fewer products using single-use plastics and packaging (55 per cent) and a wider selection of sustainable products and services (47 per cent) are the top three ways consumers say businesses can promote consumer sustainability,” it stated.
However, it showed that businesses faced a challenge in earning consumers’ trust concerning sustainability claims, especially in Europe, where 23 per cent of respondents said they did “not trust very much” the sustainability claims made by businesses.
A lack of information on how products are sustainable (48 per cent) and the high price of sustainable products (45 per cent) were cited as the main barriers for consumers to make more sustainable purchases.
The research found 76 per cent would welcome more advice on how to be more sustainable, with the proportion highest in the Philippines (93 per cent), Indonesia (91 per cent) and the UAE (90 per cent).
However, over half of those surveyed said that they would only make sustainable choices if they were convenient, with a third saying that living sustainably was unaffordable.
By Dylan Siegler, SVP, Sustainability via Green Buzz Weekly • Reposted: July 31, 2023
State and federal policymakers on the right were not targeting corporate sustainability programs when they began lobbing anti-ESG rhetoric and proposed laws into state and national legislatures.
But what began as a campaign against making environmental, social and governance risks and opportunities part of investment decisions predictably spread, just as high-profile battles over drag shows and critical race theory took over the news cycle. Bans against banks and financial services companies that “boycott” fossil fuels, as in Texas Government Code Chapter 809, became a pressure on companies to back away from social impact as well as environmental measures.
This spring, there were increased reports of ESG backlash from shareholders (and their partisan advisers) when they voted on investor proposals at public company annual meetings. About a third of anti-ESG shareholder proposalsfocused on pressuring companies to stand down on DEI initiatives. Climate also took a hit (although it’s important to note that the data is more complex in that area, where pro-ESG shareholder engagement is advanced). Many of these proposals failed; passing didn’t seem to be the point.
Meanwhile, anecdotal evidence indicates that more companies are “greenhushing,” or taking a quieter approach to sustainability communication. A sustainability head for a Fortune 500 red-state-based company, who spoke to me only if I didn’t identify him or his company in this newsletter, confirmed that anti-ESG rhetoric has caused his employer to communicate to the public less often and less comprehensively about sustainability efforts, and we hear similar accounts from members of our GreenBiz Executive Network, a peer learning forum for sustainability executives from large companies.
Another continuing issue potentially abetting the anti-ESG movement is that despite bold public climate goals and other commitments, many of the same companies hold back from advocating for progressive policy, and sometimes actively lobby against those interests. Specifically, some fund PACs that support political candidates who may espouse rhetoric in conflict with a company’s own ESG strategy. Even unintentional firewalls between government affairs and sustainability can cause companies to talk out of both sides of their mouths.
What to do about anti-ESG rhetoric
I asked Deborah McNamara, co-executive director of ClimateVoice, a nonprofit focused on helping climate-positive companies influence policy, what actions a sustainability professional should take to counteract the ESG backlash. In an email, she said anti-ESG rhetoric is “a new form of climate denialism” and exhorted companies with sustainability commitments to, effectively, stay the course and focus on impact. “Employees and sustainability professionals should talk about how ESG investments help them build a better and more profitable business,” she said. Companies should “remain focused on aligning all levels of business operations and advocacy with achieving meaningful climate goals, and continue to advocate forcefully and consistently for climate policy progress on all fronts.”
The Fortune 500 sustainability head who told me he sees more greenhushing gave an important and reassuring caveat: While his company may not be shouting from the rooftops about ESG, the company’s real-world actions in sustainability have not markedly changed in response to the shift in political tone.
It would be satisfying to raise a fist and advise sustainability professionals to speak out brashly against the backlash and encourage their companies to do the same in the face of political pressure. But not every company has a sustainability head with high company-wide social capital, a mature sustainability program with a proven business case or the executive support to withstand ever stronger political headwinds. Almost 70 percent of the top five earning executives in U.S. S&P 1500 firms are affiliated with the Republican party, which has made opposing ESG one of its calling cards in the current election cycle. Some professionals — and their companies — will simply need to choose between being brave and being safe.
Here are three straightforward ways you can push back against the anti-ESG campaign:
Low lift If your company is in a greenhushing phase, use it to your advantage. When you say less, my Fortune 500 source points out, it’s more straightforward to prioritize accuracy and assess any risk that might be associated with your disclosures. Less can be more — especially if you’ve historically not seen eye to eye with your comms colleagues.
Medium lift Get to know your government affairs department. Do they understand your motivations, and vice versa? What risks are they focused on? If you don’t have a dialogue, start one.
Heavy lift Sign your company on to the Ceres / We Mean Business Coalition-led initiative Freedom to Invest. The campaign mobilizes business and investor interests “around a unified message to policymakers: Protect the Freedom to Invest Responsibly.”
Big ambitions? Do all three. But whatever you do, do something.
“It can either be that all of us decide, ‘I have a lot of other work to do to sell my product or service. I don’t want to stick my head up. I don’t want to [have] what Disney has [experienced] happen to me. I’ll let somebody else fight this.’ That’s one example,” said Steven Rothstein, managing director of the Sustainable Markets Accelerator at Ceres on the main stage at last month’s GreenFin 23 event.
“The other one is that we all decide to get involved. The future of this industry is up to literally the people in this room … so I hope all of us reach out to people — Democrats, Republicans — all kinds of folks. If everyone here writes a letter to the editor, or does social media or an op-ed, or signs a petition or whatever you want to do — what GreenFin in ’25 will be like will be determined by what each of us do in the coming months.”
Tips to launch a purpose-driven business that can thrive in any economy. BY BRYAN JANECZKO, CEO, NUNBELIEVABLE via INC. • Reposted: July 31, 2023
Once the must-have shoe made of sustainable materials, Allbirds is now flapping its wings against the winds of change – its stock is down 96% since its initial IPO. And though fashion is historically fleeting, tech giant Salesforce, which pioneered giving 1% of their time, product, and equity to charitable causes, has seen thousands of layoffs in just a few months. It’s now pledging to be “lean and mean” in efforts to hit 30% profit margins. Though their giving model currently remains, employees have been warned to not let “culture” get in the way of their leaner marching orders.
These stories may tempt you to jump to the conclusion that today’s world is more jaded and less concerned about for-purpose missions, especially with talks of recession in the air. However, I would argue the opposite is true.
Launching a business when so much economic uncertainty looms may feel particularly risky. Launching a purpose-driven business probably feels even riskier – some might say downright inadvisable. Their skepticism is not entirely unwarranted. It’s hard to feel like the for-purpose model is thriving when its former giants are falling.
Once the must-have shoe made of sustainable materials, Allbirds is now flapping its wings against the winds of change – its stock is down 96% since its initial IPO. And though fashion is historically fleeting, tech giant Salesforce, which pioneered giving 1% of their time, product, and equity to charitable causes, has seen thousands of layoffs in just a few months. It’s now pledging to be “lean and mean” in efforts to hit 30% profit margins. Though their giving model currently remains, employees have been warned to not let “culture” get in the way of their leaner marching orders.
These stories may tempt you to jump to the conclusion that today’s world is more jaded and less concerned about for-purpose missions, especially with talks of recession in the air. However, I would argue the opposite is true.
Consumers today are seeking more meaningful, genuine approaches to mission-driven business than ever before. 72% of US consumers want to buy from companies that reflect their values and 71% of millennials will pay more for brands they believe in. Even with inflation at 40-year highs, 57% of Americans reported they purchased goods from socially responsible brands in 2022. Moreover, talent today wants to work for brands that align with their values. Over half of employees in the US won’t consider jobs that aren’t in line with their values.
So now is actually the perfect time to launch a purpose-driven brand. In my experience, mission-driven businesses attract talent, open doors to unexpected opportunities and connections, and provide a north star for both employees and consumers to get behind.
Here’s how to launch a for-purpose brand that doesn’t just survive, but thrives.
Don’t create a product, create a community
For-purpose brands take a stand for something. Whether it be sustainably sourced materials, fair wages, donated proceeds, donated time, or any number of mission-driven initiatives, there are added costs associated with working towards social good that tend to increase product prices. That can be intimidating, but the first thing to know about a for-purpose brand is that it thrives within a community, and that community is its greatest asset.
I think Bombas is an incredible example of the power of community for for-purpose brands. At its inception, Bombas sold expensive socks. Nice socks, but expensive. From a strictly business perspective, it’s easy to dismiss. But of course, the power of Bombas was in their mission: for every pair bought, a pair would be donated to someone experiencing homelessness. This type of model obviously adds costs to the business, but after just three years they were profitable.
That was because of the power of their community. The right talent got on board because they believed in a larger vision. They then physically took that mission to the streets: hand delivering goods to shelters and transitional housing across New York City. Building those kinds of relationships brings more people in because they see the authenticity behind the brand. The DNA of the brand itself increases the sales pipeline of customers who want to put their money behind the purpose. In fact, 82% of today’s consumers agree that how a brand treats customers, employees and the community is important to their purchasing decision.
As an emerging for-purpose brand, engage with your community in a way that aligns with your mission. Volunteer with a local organization, organize a food drive, highlight your customers on social media, and get creative with it!
The mission is also going to open doors to opportunities that might not be there otherwise. For example, in my experience, a large retailer like Walmart or Kroger is more willing to take a meeting with a for-purpose brand, than just another CPG company with something to sell.
Find your path to enduring success through simplicity
Whether for-purpose or not, every business has to hit profitability, ideally sooner than later. This is particularly relevant today with funding dollars significantly less availablethan they were two years ago. Gaining traction and growing support within your immediate community is a proof point that investors will consider, but you’ve got to keep that momentum going.
In pursuit of that movement, a lot of new entrepreneurs make the mistake of rapidly expanding into new product lines or tackling new initiatives to further their for-purpose mission. In reality, when working towards that path to profitability, simplicity can be your secret weapon. There are three areas to simplify in order to maximize margins and growth: your mission, your packaging, and your business model.
Simplifying your mission doesn’t mean shrinking, it just means getting really clear on what your north star looks like. A great example is Beyond Good chocolate products. There are many brands putting out chocolate bars with environmental missions, and rightly so. Beyond Good focused its role within that niche by working directly with local farmers and producing their chocolate in Madagascar- and paying a living wage. In a crowded space like the chocolate aisle in Whole Foods, having a unique, clear mission can be the difference between a sale and being left on the shelf.
The same can be said for your packaging. In the case of CPG products, you’ve got to catch the consumer’s eye and communicate your mission clearly. RX Bar is doing this well. Without prior knowledge of the brand, you can take one look at its packaging and know exactly what you’re getting, which is a mission statement in itself. Their mission to make wellness an easier choice is represented in those easy-to-see and read ingredients.
Lastly, simplify your business by right-sizing your model to increase margins. Justin’s is a great case study on doing this well. Before the pandemic, they sold 40 different nut-based products, but the supply chain crisis meant changes were necessary, so they reduced their product SKUs to focus on what was really selling. Evaluating your SKU mix to optimize profitable SKUs and eliminate those that are not or don’t contribute to the bottom line is crucial to making sure you can keep your business successful while continuing to work towards your mission for good.
Harness the power of PR to amplify your voice
We’ve already talked about how the power of for-purpose brands lies in their ability to build and actively engage with their communities. The flip side of that is the way today’s consumers can mobilize to turn against brands they see as behaving irresponsibly. Nearly a third of Americans reported boycotting brands last year for this reason.
The current economic climate has consumers making tough choices regarding how they spend their money, but even with 46% saying the cost of for-purpose brands prevented them from buying their products, 70% said a company’s purpose or mission was an important determinant for support.
Public relations is a great tool to share the stories that make your product and larger mission unique. Even though budgets are often tight for emerging businesses, it’s a worthwhile investment to consider working with a PR professional or agency that can help you propagate your stories to a larger audience through the media.
This is a much longer-term strategy than something like optimizing SKUs, but the payoff can be tremendous. Just look at a company like Airbnb. They’ve recently reported their most profitable fourth quarter ever and a profitable first quarter for the first time ever. Their CEO credits PR as their “most important channel” for success.
Though starting a for-purpose venture right now may seem risky, I think it’s the ideal time to launch a business. When things get tough, which they always do, you have a larger mission to remind you – and your community – why you started this journey to begin with. The movement has gained so much momentum over the years and it’s only going to continue to grow.
In today’s world, sustainability has become a pressing global issue, and organizations increasingly recognize the importance of incorporating sustainable practices into their operations. Corporate leaders are playing tug-of-warwith anti-ESG (environmental, social, and governance) warriors.
In the face of the ESG backlash, companies’ reactions vary. Some are going quiet about their initiatives and accomplishments. The Washington Post refers to this behavior as “greenhushing”.
However, others are doubling down on their commitments to sustainability. For example, hundreds of companies released a letter last spring claiming their commitments to ESG positively impacted governance and asking policymakers to respect their freedom to make responsible investments.
Most of the press covering how companies are pushing back on the anti-ESG forces focus on senior leaders. However, all employees, no matter where they sit in the organization, can play a significant role in this fight.
If you care about sustainability, you can act within your company regardless of your title or position. You can take steps to support ESG and develop a strategy for influencing and supporting the senior leaders in taking a stand.
Here are some ways to fight against the anti- ESG pressures.
Educate yourself about the organization’s ESG goals and initiatives. Stay on top of the anti-ESG messaging and look for ways to refute it with evidence and data.
Staying informed about sustainability efforts allows you to communicate effectively and address concerns raised by anti-ESG individuals.
Participate in ESG training sessions and educational programs organized by the company. Understanding the value of sustainability and its long-term benefits can help you become a more effective ESG advocate.
To influence higher-level managers to keep their commitments, gather compelling evidence on the benefits of sustainability initiatives.
Include data on cost savings, risk mitigation, enhanced brand reputation, and customer loyalty. Include how organizational sustainability contributes to a culture of engaged employees. and point out the benefits of this culture to the success of the company.
Using information strategically, you can demonstrate the tangible advantages of embracing sustainability and counteract the attacks on ESG.
Organize Advocacy for ESG
Encourage and lead open discussions about ESG initiatives and their importance within the organization. Engage with colleagues and management to promote more active support for sustainability and dispel misconceptions associated with ESG.
Leadership development specialist and coach Dr. Andre Taylor says a key to effectively advancing sustainability is to form advocacy coalitions. He suggests CEOs are more receptive to ideas and initiatives supported by a cross-section of leaders throughout the organization.
Form coalitions for collective advocacy dedicated to sustainability. A cross-functional approach allows diverse perspectives and strengthens your clout.
Identify influential allies who can provide guidance and support and act as champions for sustainability efforts. Collaborating with them can amplify the message and create a shared sense of purpose across the company.
As these partnerships and coalitions grow, sustainability will become more deeply embedded into the culture. And robust and supportive cultures make stepping away from sustainability commitments more difficult.
Communicate Positively
Use constructive communication to appeal to both heads and hearts. Tell stories of how the company’s ESG efforts support the wellbeing of stakeholders.
Through examples, you can shift the perception of sustainability from a standalone effort to a strategic imperative.
Highlight how sustainable practices align with the business’s core values and contribute to long-term profitability.
Include appeals to emotions. Sure, data can be important for swaying the opinions and actions of others. However, when you also appeal to their feelings, you are more likely to persuade them.
Crafting compelling stories that educate, showcase, and highlight how sustainable and unsustainable practices impact people can evoke emotions and inspire action.
Remember You Are a Key Stakeholder
As an employee of the company, you are among the most critical stakeholder groups. You must speak up!
Share with your colleagues and managers how you feel about the importance of the company’s sustainability pledges.
Speak passionately about how these commitments impact your engagement with the company and your loyalty to it. Talk about how you would feel if the company gave in to the anti-ESG forces.
In the battle against anti-ESG sentiment, every individual’s contribution holds significance, regardless of seniority level.
You must not remain passive and leave the responsibility for the fight solely to others. Embrace your role in the struggle for sustainability and ESG, as your efforts can substantially impact your organization, its leadership, and the world.
Recognize that the stakes are significant, and you can contribute to positive change. You can and must contribute to a more sustainable and responsible future for all by actively engaging and collaborating.
Companies have to legally comply to investments in CSR initiatives, based on annual profits. The management is accountable for this compliance and it includes all the stakeholders in the process. By Bineesh Mathew via Enterprisetalk.com • Reposted: July 29, 2023
Corporate social responsibility is an ongoing process. Companies need to be ethical about ensuring they comply to this regulation.
CSR is very important for enterprise today. It includes initiatives such as supporting diversity, inclusivity, underprivileged empowerment and rights, protection of the environment, energy initiatives and poverty eradication.
Through the corporate social responsibility, companies can contribute to:
Economic growth of the country
Enhancing the well-being of employees and their families
Development of local communities and society as a whole
Through the practices of ethical values, CSR aims to share prosperity with the society that enables their profits. CSR activities can support individuals, societies, and the environment. This may include different policies, educational efforts, and charitable activities. With these, companies can help develop or sustain communities in which they operate.
CSR is about the dedication of businesses to maintain ethical commitment to the society they work in. As CSR activities need collaboration with various stakeholders, it brings economic growth to society. It also enhances the well-being of all the stakeholders. Clearly both businesses and the communities benefit from it.
Companies are giving attention to local, national, and global CSR opportunities, today. With commitments to socially beneficial activities, they can showcase a good brand image. This will help to attract clients and shareholders. Thus, it impacts the financial performance of the companies as well.
Need for Corporate Social Responsibility
Firms need to have a more extensive customer base to recruit the best resources, and also boost profits. For this, they need an excellent public image. The best way to show commitment to social causes is by investing into a CSR commitment. This can transform the public perception of the company.
Long-Term Business Interest
CSR serve the interests of both the society and the company. A developed society will create a better atmosphere for businesses. So strong CSR enables businesses to achieve long-term business growth and profits as well.
On the other hand, an open-minded and socially responsible company will show concern for the society’s needs. So, investment into developing a better community, indirectly also helps businesses grow. Investing in social welfare programs can be a strategy to accomplish this goal.
Avoiding Government Intervention
Regulations and controls from the government bring financial and other risks for businesses. To avoid some of these interventions, companies can invest in CSR activities. This will keep them safe to an extent and also allow the leaders to take decisions favorable for the business.
If the government finds negligence in social investment, it will impose penalties and regulatory clauses on a company. To avoid these, companies need to identify projects that show the change they want to make to the society. They can select a CSR initiative that is suitable for their area. With this small investment, they can also save themselves from government intervention.
Benefits of CSR
Productivity and Quality
Since CSR is about giving back to the society, it usually encourages employee participation. employees can feel the commitment to the project and be a part of the decision-making process. Thus, it increases productivity and reduces the challenges that leaders face in running a company
Improved Financial Performance
Socially responsible businesses can improve their financial outcomes. This improvement can happen due to many factors. They can include:
Stable socio-political legal environment
An enhanced competitive advantage resulting
Superior corporate reputation and brand image
Better recruitment
Retention and motivation of employees, and
A more secure operational environment
Brand Image and Reputation
A socially responsible company can strengthen its brand reputation in the industry. It will also enhance its position in the business community. So the company can boost its capacity to attract potential customers.
Increases Employee Motivation
Companies showing interest in social responsibility improve their employee engagement. It enables companies to attract resources with a motivation to create an impact. this kind of employees boost the company’s efficiency and market growth.
A collective employee’s effort is critical to accomplish CSR initiatives. Employees working together for a cause will improve workplace morale and will lead to better productivity. Thus, CSR activities in a company increase employee engagement and motivation levels. In this manner, it will contribute to the profits of the company.
Community Support and Customer Loyalty
Social responsibility is a common ground for both companies and consumers. CSR can support the betterment of both local and global societies. thus it can be a bridge that benefits both.
Social responsibility programs should align with the core values of a firm. It opens doors to enhance customer retention and foster a sense of loyalty.
Bolstered Public Trust
After establishing a reputation for CSR, it is imperative not to become complacent. With a visible initiative, the industry watches for developments. A successful CSR initiative also helps to fight the common skepticism towards capitalist brands. Enterprise often believed to be profit-seekers, can show a different focus with a successful CSR project.
Continuous support to the project is necessary to maintain the trust gained as a responsible brand. Companies can maintain it through sustainable financial backing. They also can provide transparent evidence of equal organizational principles to achieve this.
Greater Sustainability
Environmentally friendly initiatives derive a lot of value for the enterprise.
Adopting environmental CSR practices aligns with preserving the environment. Moreover, it holds economic value for businesses.
Damaging the environment can have negative effects on business. Incorporating sustainable initiatives makes logical business sense.
Transitioning to sustainable alternatives may involve significant initial investments. These systems are more cost-effective in the long term.
The prices of fuel and other inputs are rising. So, companies that adopt less expensive technologies will gain financial benefits.
Encourage professional and personal growth
A CSR culture within companies encourages the culture of volunteering. It also encourages employees to be charitable in many other ways.
Encouraging such behavior aligns individuals with philanthropic values. Further, it fosters a commitment to improving local and global communities. So, it makes employees more productive and creative. Thus, corporate social responsibility in companies enables employees to grow personally and professionally.
Summing Up
Even a small initiative can make a significant impact on society. Smaller companies will have limitations in contributing funds or resources for CSR. But since the CSR compliance varies according to the size of the company, they can start with whatever suits their pockets.
These could include:
Organizing modest fundraising events
Fostering a culture of volunteering
Implementing a social mission and well-defined objectives
Providing educational programs for employees
Aligning with like-minded businesses to pool efforts.
Adopting corporate social responsibility (CSR) activities improves customer loyalty and retention. Moreover, it:
Boosts employee commitment
Enhances brand perception
Attracts investment prospects
Fosters recruitment of exceptional talent
Impacts financial performance
Socially responsible businesses make a good brand reputation and attract more clients. Moreover, it will help in attracting exceptional employees to the company. These are crucial factors in getting the desired results, profit, and better financial outcomes.
The U.S. has had a child hunger problem for decades. The COVID-19 pandemic turned that problem into a crisis.
Before the pandemic, 1 in 7 American children experienced food insecurity. The pandemic narrowed that ratio to 1 in 4 by the end of 2020, and nearly 1 in 6 families with children have struggled with food insecurity in the past year.
Hunger, clearly, is not just a U.S. problem. The U.N. Sustainable Development Goals (SDGs) call for an accelerated response to end hunger in all its forms by 2030. But the pandemic’s impact on economies and supply chains led to global hunger increasing for the first time in nearly a decade.
While many people are back to work and the economy is slowly growing again, agencies that support at-risk families are still trying to make up ground.
“Though we’ve seen improvement since the pandemic, too many are still struggling to keep food on the table as inflation wreaks havoc on families who are most vulnerable,” said Travis Arnold, president and CEO of Feed the Children, a 40-year-old anti-hunger organization that provides aid to children in the U.S. and abroad. In 2022, the agency distributed about 92.6 million pounds of food and essential items worldwide, benefiting more than 11.5 million people globally.
Corporate partnerships can help nonprofits and communities fight hunger
Nearly 10 percent of the global population, up to 811 million people, faced hunger, food insecurity and malnourishment in 2020, according to the Food and Agriculture Association of the United Nations.
More corporations have had to step up with supplies, service and partnerships. One successful pairing is the ongoing collaboration between Feed the Children, Herbalife and the Herbalife Nutrition Foundation. These organizations have partnered since 2019 through Herbalife’s global health and wellness initiative. According to Feed the Children, this collaboration focuses on expanding access to healthy food, identifying sustainable food resources and improving nutrition education, as well as raising awareness about the global hunger crisis.
Worldwide, Herbalife provides nutritional supplements to support thousands of children and families in the countries where Feed the Children works, Arnold said. “In the U.S., we have partnered for multiple community events, most recently in the Los Angeles area,” he told us. “Through our partnership, we have been able to provide both food and resources to thousands of families without life’s essentials across the country. These products help to supplement meals to thousands of families who are struggling to make ends meet.”
As important as the money and supplies Herbalife contributes is the educational material it produces and presents. “Herbalife not only provides a generous means for Feed the Children to scale our impact, but also meaningful ways to talk about the power of our work with new audiences,” Arnold said. The company’s registered dietitians and nutrition experts regularly provide educational materials, including meal and snack recipes, to pack into food donation boxes. The company has printed and delivered 48,000 recipe cards for Feed the Children food boxes.
In preparing recipes, Herbalife experts focus on creating meals that are accessible, affordable, nutritious and can be fun to prepare, according to the company. Recipes adhere to guidelines including the U.S. Department of Agriculture’s low-cost ingredients index and utilize foods often found in boxes that Feed the Children distributes. Bilingual recipe cards, in English and Spanish, also are available.
Scaling nutrition education worldwide
Herbalife and Feed the Children are looking to create additional joint education programs, including resources for teachers, teacher stores and nutrition education seminars for community partners.
In terms of Feed the Children’s own direct education efforts, it sponsors a support program for new mothers and pregnant women. Called Care Group, the program utilizes a peer-to-peer behavior change methodology: Facilitators work with pregnant women and new mothers directly to educate them about prenatal and postnatal nutrition, the benefits of breastfeeding exclusively for the baby’s first six months, and the types of supplemental foods to use until the child is 2 years old. “We help mothers learn how to select and prepare meals that provide the diversity of vitamins and nutrients growing bodies need,” Arnold explained.
Feed the Children also manages child-focused community development programs that focus on reducing hunger and malnutrition, teaching health, and promoting self-reliance in eight countries in Asia, Africa and Latin America.
And thanks to increased monetary and product contributions from corporate partners, Feed the Children expects to reach even more families in the U.S. and around the world this year, Arnold said.
The extra aid from Herbalife alone will supplement 300,000 meals and beverages for families in the U.S. The company has also increased its financial commitment to Feed the Children’s international program by $500,000 over two years. Globally, Feed the Children expects to expand programs designed to improve the health and nutritional profile of women and children. These resources include supplementary feeding supplies, deworming medicine and vitamin A supplements for children.
Partnerships are key to success
Corporate collaborations and other pairings are critical to the ongoing mission and success of Feed the Children and its fellow aid organizations, Arnold said.
“Partnerships are vital to success in every aspect of our work. Whether here in the U.S. or in communities around the globe, we cannot do this work alone,” he told us. “We are providing access to food and reducing the stigma around food insecurity through community events and resource rooms across the country. We are engaging communities in developing countries with education and empowerment. Our work with Herbalife is one example of how companies can make a significant contribution to a global issue through collaboration and true partnership.”
This work is needed now more than ever. With the price of basic necessities including food, energy and housing continuing to rise, the number of families straining to meet expenses are expected to increase in the coming months, Arnold observed.
“During the pandemic, we learned to be innovative in order to get food and essentials to families in their own communities,” he continued. “Many of these efforts continue today through our network of community partners, as well as through the generosity of our donors and corporate supporters. It takes all of us working together in order for these efforts to be successful.”
By Mary Riddle from Triple Pundit • Reposted: July 26, 2023
The U.S. Securities and Exchange Commission (SEC) is expected to release its long-awaited climate disclosure rule this fall, and businesses are preparing for change. The intent is to create a framework for companies to make climate-related disclosures in a way that is standardized and allows for comparison.
“I think it is helpful to frame the SEC proposal not as a climate proposal, but rather as a proposal to enhance and standardize climate-related financial disclosures,” said Emily Pierce, chief global policy officer at the carbon accounting firm Persefoni and a former SEC lawyer involved in developing the proposed rule.
What’s different about the SEC climate disclosure rule?
The SEC’s forthcoming climate disclosure rule has been over a decade in the making. In 2010, SEC staff issued guidance stating that climate change could impact business operations as it carries material risks that affect financial performance, Pierce said. And anything that could impact financial performance should be communicated to investors.
Five years later, the investor demand for information was growing steadily. “By 2015, there was a collective concern about investor demand for sustainability information,” she said. “Investors were not getting the information they were asking for, and the marketplace was inefficient.”
The Task Force on Climate-Related Financial Disclosures (TCFD) rose up to meet that demand shortly after the Paris climate agreement was adopted in 2015. “TCFD developed helpful disclosure frameworks for governance, strategy and risk management processes,” as well as metrics and targets to measure a company’s greenhouse gas footprint, Pierce said.
“TCFD is a market norm, but it wasn’t always complete and comprehensive, and it didn’t allow for comparison,” she explained. “The SEC was inspired by the TCFD framework that investors and companies have found useful.”
What do we know about the new rule?
The SEC’s proposed rule covers how companies communicate their climate-related risks. Companies will be required to disclose material risks, including physical risks and transition risks, related to climate change. These may include sea-level rise, more frequent extreme weather events and wildfires, or changes in government regulation and consumer demand.
Importantly, the rule will not initially apply to all companies, but will be phased in over time. “Phasing is an important part of the proposal, because it’s our way of managing implementation,” Pierce said. “We have to strike the balance between investor protection and creating a rule that is feasible for companies to implement. I think the most likely scenario is that, if it is finalized this year, companies will need to gather data next year for fiscal year 2025.”
The rule will also hold companies’ feet to the fire for claims made about net-zero and emissions reductions. If a company has a public target related to cutting emissions, the SEC will require additional disclosures and obligations related to that target.
“A lot of companies calculate their greenhouse gas emissions today,” Pierce said. “But they do it in a way that does not have as much control over their data, calculations, and outputs compared to what they would have in their financial calculation reporting. When you’re making information investor-grade and compliance-ready, you should bring lessons you have learned from the financial space into the carbon accounting space.”
Emissions created by a company’s direct operations — Scope 1 emissions — and emissions associated with the company’s purchase of energy — Scope 2 emissions — will need to be externally assured, Pierce said. But smaller companies will not need to disclose value chain emissions from assets the company does not own — Scope 3 emissions — unless they set an emissions target for Scope 3, she predicted.
What’s next?
The climate disclosure rule should not contain any surprises compared to the SEC’s current proposal, Pierce said. But the timing of release will be later than anticipated, due to the unprecedented number of public comments and feedback. Many analysts agree it will be released this fall.
“To be ready for climate disclosure, companies need to bring discipline and processes to their broader corporate thinking about governance, strategy and risk management,” Pierce said. “Additional discipline and processes will help them communicate about what they’re doing.”
A lot of companies are already thinking about these issues, calculating their emissions and gathering the necessary information, Pierce said. “There are market rewards to decarbonizing, and they see the value in that. We will see an increase in the market rewarding sustainable behavior, whether it is in access to capital, customer preference, more business-to-business relationships or consumer demand.”
Spain, Barcelona, Mercat de Sant Antoni Market, canned seafood display. (Photo by: Rosie Irene Betancourt/Jeffrey Greenberg/Universal Images Group via Getty Images)
Companies should make their voices heard by participating in critical stakeholder events. By Jamie Gibbon & Katy Hladki from Pew Trusts • Reposted: July 26, 2023
With catch worth more than US $40 billion dollars per year, tuna is one of the most important species for supermarkets and other companies in the global seafood industry. So it is critical that its catch is closely monitored to help protect the sustainability of the species.
But that isn’t the case. Of the over 20,000 registered vessels catching and transporting tuna throughout the world’s ocean, only a small portion are independently monitored.
However, that may soon change. Retailers are hearing from their customers that the sustainability of the fish they buy is more important than ever. To ensure greater transparency, which can lead to more sustainable management of tuna species, retailers can—and should—become more active in calls for increased oversight and data collection on the vessels bringing tuna to the market.
In June, Walmart, one of the world’s largest global retailers, committed to improving transparency in the data collection of its tuna supply chain and will soon source exclusively from vessels with 100% observer coverage, through either human observers or electronic monitoring (EM), which uses cameras and sensors to collect information on fishing activity. This level of commitment to transparent, well-managed tuna fisheries is commendable, and while some retailers have made similar calls for transparency, more should do the same.
Making a commitment to 100% observer coverage in tuna supply chains is an important first step. But to ensure that there is sufficient product to meet consumers’ needs while also fulfilling this transparency pledge, retailers should get more involved in the policy process, letting government officials and fishing companies know that sustainability is a priority for the buyers.
Direct engagement with regional fisheries management organizations (RFMOs) is one way for retailers to do that. RFMOs govern most of the world’s shared commercial fisheries and regulate both the amount of fish caught and how they are caught. By advocating for region-wide EM programs, market members can help ensure that all vessels fishing for tuna will have the tools and rules available to easily collect data on their catch and operations and share that information with government regulators and the companies that buy their fish. That can help retailers meet their commitments to consumers.
Public pressure is already starting to pay off. In the Indian Ocean, where retailers have warned that continued overfishing of yellowfin tuna could affect their buying decisions, governments recently agreed to the world’s first EM standards, which will allow fishing vessels to use cameras and sensors to collect data required by regulators. Similar discussions are underway among Atlantic and Pacific ocean fishery managers, and retailers should advocate for RFMOs in those regions to adopt and implement EM programs that include standards and pathways for improving and increasing observer coverage.
Companies buying and selling seafood directly benefit from healthy tuna stocks. As such, they bear responsibility for ensuring that fisheries are well managed and that vessels are capturing and reporting accurate and transparent data. Through their purchasing practices, sourcing commitments and advocacy actions at RFMOs, businesses can help protect the long-term health and stability of global tuna stocks and ocean ecosystems.
Major retailers committing to increased transparency and data collection can help profoundly improve practices throughout the seafood supply chain, which in turn will promote the health of the ocean and fisheries globally. This will pay dividends to those companies—and seafood consumers worldwide—for a long time to come.
Jamie Gibbon is a manager and Katy Hladki is a senior officer working on Pew’s international fisheries project.
Sustainable supply chains are vital and attainable. Image: Photo by Lenny Kuhne on Unsplash
Sustainability is not an elusive concept that competes with traditional metrics of profitability and efficiency, but one that can be measured and achieved by using what you have more intelligently. By Saar Yoskovitz, Co-Founder and Chief Executive Officer, Augury via the World Economic Forum • Reposted: July 26, 2023
Supply chain disruptions and inventory concerns continue to trouble governments, businesses and consumers worldwide. Even as supply chain bottlenecks begin to clear up, severe sustainability and supply problems remain due to the amount of waste traditionally produced by retail and manufacturing sectors and the increasingly stringent metrics by which they are judged by investors and consumers.
Moreover, with ongoing geopolitical contention in Europe and Asia, inflationary challenges and increased consumer spending, the manufacturing and supply chain industries are under pressure to navigate constant obstacles.
The interconnectedness of the supply chain
To find solutions, we need to look at the interconnectedness of the supply chain. Factories, for example, play a prominent role in mitigating a host of supply-chain problems and can help lower the impact of inflationary pricing by working more efficiently in several ways. Worn down and inefficient machinery, for instance, slows production, causing bottlenecks and wasting energy and materials.
Furthermore, labour costs increase as more people are brought in to address broken machinery and even more money is lost when the factory line pauses production.
Where does sustainability come in?
Often, efficiency and sustainability are seen as competing interests, but what if there was a way that companies can establish both in their manufacturing processes and support supply-chain efficiencies?
A focus on sustainability on the factory floor can reduce waste (most obviously by lowering costs and increasing yields) while alleviating pressures across the supply chain. How so? When fewer materials are needed to create a product, less mining, harvesting and sourcing of these materials is required, thus involving less processing, trucking and warehousing and minimizing potential pain points in other areas of the supply chain.
And, when machines operate efficiently while producing quality goods, there is also a chance of fewer recalls around issues in the manufacturing process. This, in turn, diminishes the inventory volume of goods travelling back through the supply chain, alleviating another host of problems. These benefits compound; improvements in quality issues boost sustainability and customer service scores.
Running manufacturing assets better and more efficiently can help organizations realize their sustainability goals and serve customers better, while easing supply-chain pressures ahead of the holiday bloat.
To do so, we must consider machine and process health through a predictive lens.
Machine health
There are three key components to machine health: mechanical problems, design problems and operational problems. Every industrial leader must understand how the factory level is performing across these three measurements to ensure production runs smoothly.
Monitoring for mechanical problems includes monitoring temperature, vibration and magnetic data to identify changes ahead of complete machine failure.
Design problems come to the forefront when individual machines undergo extra amounts of stress due to an inefficiently designed production facility. By getting ahead of these issues, facilities can avoid unplanned downtime, delays, bottlenecks and inconsistent product quality, tying back to the efficiencies detailed above.
Operational problems come into play with the human element. Even with a perfectly designed machine, people make modifications and unknowingly create additional issues.
Continuously monitoring machine health can curtail unplanned downtime and boost productivity to new heights that will be felt throughout the supply chain. According to the National Institute of Standards and Technology, running assets more efficiently can also save US manufacturers $3.3 billion in waste caused by downtime, reduce energy consumption by 12% to 15% and avoid up to 6,500 workplace accidents annually.
But machine health is only half of the equation for solving industry concerns. Process health offers a look into the interconnected inputs and elements of a full production system and other contributing factors, which, when misaligned, become part of the industry’s sustainability problems.
Process health
Manufacturing and supply chain leaders are aware of profits left on the table, but that does not have to be an accepted standard. There is a critical measurement that can combat inefficiencies and losses. Enter process health.
According to a report by ARC Strategies, there is an estimated $1 trillion lost due to unplanned downtime in the process industries. To bridge the trillion-dollar gap, organizations can unlock productivity by honing their machine health and optimizing production by 40% and improving energy use by up to 30%. Those are significant markers.
Process health helps leadership prevent losses from occurring in the future by analysing data at every step and level of production. It can also identify optimal process settings and establish connections between dynamic and complex variables. It is a no-brainer for industry leaders who want to see significant improvements in quality, throughput, energy and reductions in CO2 emissions and waste.
Big picture vision
The supply chain is a complex structure that is the backbone of our economy. While there may not be a one-size-fits-all solution to address the dilemmas of late, repositioning our understanding of the interconnectedness – starting at the factory floor – can illuminate opportunities that may not have been as apparent.
Continuously monitoring machine and process health can reveal untapped potential. In fact, it is estimated that 10% to 20% of manufacturing capacity is shadow capacity or production capabilities that exist within current manufacturing lines, but are going unused. Embracing shadow capacity has positive implications for onshoring, productivity and efficiency.
As supply chain obstacles continue amid ongoing geopolitical turmoil, fluctuations in consumer spending and a possible recession, it is high time we rethink the relationship between sustainability, manufacturing and the supply chain. Sustainability is no longer an elusive concept that competes with traditional metrics of profitability and efficiency, but one that can be measured and achieved by using what you have far more intelligently.
By Michaela Barnett, Founder, KnoxFill, University of Virginia, Leidy Klotz, Associate Professor of Engineering and Co-Director, Convergent Behavioral Science Initiative, University of Virginia, Patrick I. Hancock, Postdoctoral fellow, University of Virgini and Shahzeen Attari, Associate Professor of Public and Environmental Affairs, Indiana University via The Conversation • Reposted: July 25, 2023
You’ve just finished a cup of coffee at your favorite cafe. Now you’re facing a trash bin, a recycling bin and a compost bin. What’s the most planet-friendly thing to do with your cup?
Many of us would opt for the recycling bin – but that’s often the wrong choice. In order to hold liquids, most paper coffee cups are made with a thin plastic lining, which makes separating these materials and recycling them difficult.
In fact, the most sustainable option isn’t available at the trash bin. It happens earlier, before you’re handed a disposable cup in the first place.
Our results show that a decadeslong effort to educate the U.S. public about recycling has succeeded in some ways but failed in others. These efforts have made recycling an option that consumers see as important – but to the detriment of more sustainable options. And it has not made people more effective recyclers.
Experts have long recommended tackling the waste problem by prioritizing source reduction strategies that prevent the creation of waste in the first place, rather than seeking to manage and mitigate its impact later. The U.S. Environmental Protection Agency and other prominent environmental organizations like the U.N. Environment Programme use a framework called the waste management hierarchy that ranks strategies from most to least environmentally preferred.
The U.S. EPA’s current waste management hierarchy (left, with parenthetical explanations by Michaela Barnett, et al.), and a visual depiction of the three R’s framework (right). Michaela Barnett, et al., CC BY-ND
The familiar waste management hierarchy urges people to “Reduce, Reuse, Recycle,” in that order. Creating items that can be recycled is better from a sustainability perspective than burning them in an incinerator or burying them in a landfill, but it still consumes energy and resources. In contrast, reducing waste generation conserves natural resources and avoids other negative environmental impacts throughout a product’s life.
R’s out of place
In our surveys, participants completed a series of questions and tasks that elicited their views of different waste strategies. In response to open-ended questions about the most effective way to reduce landfill waste or solve environmental issues associated with waste, participants overwhelmingly cited recycling and other downstream strategies.
We also asked people to rank the four strategies of the Environmental Protection Agency’s waste management hierarchy from most to least environmentally preferred. In that order, they include source reduction and reuse; recycling and composting; energy recovery, such as burning trash to generate energy; and treatment and disposal, typically in a landfill. More than three out of four participants (78%) ordered the strategies incorrectly.
When they were asked to rank the reduce/reuse/recycle options in the same way, participants fared somewhat better, but nearly half (46%) still misordered the popular phrase.
Finally, we asked participants to choose between just two options – waste prevention and recycling. This time, over 80% of participants understood that preventing waste was much better than recycling.
Recycling badly
While our participants defaulted to recycling as a waste management strategy, they did not execute it very well.
This isn’t surprising, since the current U.S. recycling system puts the onus on consumers to separate recyclable materials and keep contaminants out of the bin. There is a lot of variation in what can be recycled from community to community, and this standard can change frequently as new products are introduced and markets for recycled materials shift.
Our second study asked participants to sort common consumer goods into virtual recycling, compost and trash bins and then say how confident they were in their choices. Many people placed common recycling contaminants, including plastic bags (58%), disposable coffee cups (46%) and light bulbs (26%), erroneously – and often confidently – in the virtual recycling bins.
This is known as wishcycling – placing nonrecyclable items in the recycling stream in the hope or belief that they will be recycled. Wishcycling creates additional costs and problems for recyclers, who have to sort the materials, and sometimes results in otherwise recyclable materials being landfilled or incinerated instead.
Although our participants were strongly biased toward recycling, they weren’t confident that it would work. Participants in our first survey were asked to estimate what fraction of plastic has been recycled since plastic production began. According to a widely cited estimate, the answer is just 9%. Our respondents thought that 25% of plastic had been recycled – more than expert estimates but still a low amount. And they correctly reasoned that a majority of it has ended up in landfills and the environment.
Empowering consumers to cut waste
Post-consumer waste is the result of a long supply chain with environmental impacts at every stage. However, U.S. policy and corporate discourse focuses on consumers as the main source of waste, as implied by the term “post-consumer waste.”
Other approaches put more responsibility on producers by requiring them to take back their products for disposal, cover recycling costs and design and produce goods that are easy to recycle effectively. These approaches are used in some sectors in the U.S., including lead-acid car batteries and consumer electronics, but they are largely voluntary or mandated at the state and local level.
When we asked participants in our second study where change could have the most impact and where they felt they could have the most impact as individuals, they correctly focused on upstream interventions. But they felt they could only affect the system through what they chose to purchase and how they subsequently disposed of it – in other words, acting as consumers, not as citizens.
As waste-related pollution accumulates worldwide, corporations continue to shame and blame consumers rather than reducing the amount of disposable products they create. In our view, recycling is not a get-out-of-jail-free card for overproducing and consuming goods, and it is time that the U.S. stopped treating it as such.
In today’s business world, many functions are outsourced. For example, at my company, we outsource payroll, IT, legal services and taxes because of the highly specialized knowledge required to do the tasks and the economies of scale achieved by the vendors. It doesn’t make sense for us to hire a full-time, in-house attorney with expertise in contracts, employment law, litigation, etc., when there is a buffet of highly specialized lawyers I can access through one relationship with a law firm—and I can rely on them as needed.
A similar theme is emerging in sustainability services. As an expert in providing outsourced CSO services, my company and others in the space help firms achieve their sustainability goals.
One of the biggest challenges faced by businesses today is finding people to assimilate all the knowledge needed to maneuver the energy transition, which places increasing pressure on businesses to reduce emissions, promote circularity and track sustainability. According to LinkedIn’s Global Green Skills Report 2022, demand for “green skills” is outpacing supply, and the specialization of “green skills” is proliferating—from climate and renewable energy to environmental awareness and corporate social responsibility.
Companies are responding to this need by appointing a chief sustainability officer, or CSO, who is expected to lead the response to the energy transition. The skills required to do this are complex, technical and often beyond the abilities of one person. It requires engineers, legal experts, market analysts, investment bankers and project managers.
Outsourcing CSO services, like outsourcing legal and accounting, allows businesses to access specialized sustainability experts. Outsourced CSOs can provide sustainability, business strategy and operational guidance related to the energy transition.
Making The Decision To Outsource
Whether you are leading a small startup or a large publicly traded firm, here are several instances where outsourcing CSO services can be an effective way to address some of today’s carbon challenges:
• New climate startups: You have launched a successful business model and are fortunate enough to be juggling multiple balls—hiring and training, sales and business development, investor relations and more. Your leadership team may not have time to keep up with global climate policies, emerging incentive programs, new competing technologies, evolving carbon markets, data standards and carbon accounting rules.
• Small or midsized privately held businesses: You have loyal customers who like your products or services, and you are growing steadily in a stable environment. Recently, these customers have been asking casual questions about the company’s sustainability efforts. The leadership team doesn’t have the time or the baseline knowledge to analyze the company’s sustainability.
• CEOs or CFOs: It’s time to update investors and shareholders about profit margins, strategic plans and key performance indicators, and they also want to see an analysis of energy transition risks and climate risks. As a believer in risk-averse governance, you know you should include this in your quarterly report, but you are not clear where to start.
• One-person sustainability departments: Pressure from the board and upper management has forced one person to research and respond to a variety of questions over the years, and their role has evolved to include “sustainability expert.” But the questions are becoming more complex and overwhelming. A climate scientist, a policy analyst and a process engineer are needed on the team to fully respond to the situation, but the budget doesn’t allow this.
Of course, outsourcing a task core to a business’ strategic direction is not always a good idea. A CSO is a part of the leadership team and has access to confidential information that is key to a company’s success and competitive advantage, which are not things that can be shared with an outside firm before establishing a high level of trust. In these cases, it is better to plan to have an in-house CSO who can incorporate these business secrets into a long-term sustainability strategy.
Getting Started With An Outsourced CSO
The CSO is usually key to building the company’s “green team” that has the passion for facilitating the energy transition and the specialized skills needed to perform the critical analysis needed. If you are outsourcing a CSO, make sure you have established an internal team with diverse skill sets; these include climate scientists, market analysts, process engineers, policy advisors, etc.
The energy transition requires a business to rethink how it’s doing business, and a CSO must frequently interact with purchasing, marketing, legal, accounting and operations, and talk their language.
A key CSO function is communicating complex technical concepts in simple language. Ask your CSO to conduct an analysis of the risks and opportunities your business faces, so when a customer or an investor casually asks what you are doing on the sustainability front, you can give a clear and confident response.
CSOs lead a company’s response to the energy transition: Look for someone who is unbiased, data-driven, aspirational in their approach, has a strong grasp of internal and external stakeholder needs, and a peer network that includes policy analysts, engineers, auditors, carbon life cycle experts, etc.
The biggest challenge in deciding whether to outsource the CSO function is how to integrate someone external into the day-to-day details of your team’s workflow. Should you give them a company email? How much confidential information should you share? Who should be the main point of contact internally for the outsourced service? Each company has to develop its own processes to govern the level of outsourcing it wishes to put in place.
Some companies starting fresh on the energy transition journey need a temporary leader with a full team of external technical resources that they can use as needed. Others, further down the path, may have an internal CSO on the team, but they need to outsource technical expertise and receive policy briefings and technical analyses, as needed.
Outsourcing the CSO function can make it easier for businesses to make sustainability and strategic decisions. An outsourced CSO can analyze the risks and opportunities a business faces due to climate policy, carbon pricing, consumer preferences or even severe weather events, so when a customer or an investor asks what you are doing on the sustainability front, you can give a clear and confident response.
The RMA aims to fill a crucial gap by offering brands, agencies and publishers a range of services to accelerate their competitive advantage through a sustainability lens. From Sustainable Brands • Reposted: July 23, 2023
As the media world grapples with its role in the climate crisis, the Responsible Marketing Agency (RMA) launched this week as a new breed of specialist with a mission to help media, digital and marketing clients to realize sustainable growth through responsible and progressive practices.
The RMA’s team of ethically minded media and marketing professionals will help brands, agencies and publishers to accelerate competitive advantage, shaping capabilities and enabling delivery of credible environmental, social and governance (ESG) roadmaps and KPIs in line with the UN’s Sustainable Development Goals.
As outlined in the World Federation of Advertisers’ (WFA) and Kantar’s Sustainable Marketing 2030 report, 39 percent of client-side marketers say their companies are only now taking their first steps towards sustainable practices, citing a lack of resources, knowledge and skills — while 15 percent haven’t yet started.
To address this, the Responsible Marketing Agency aims to fill a crucial gap by offering flexible service models to cover advisory, enablement, strategy and partnerships through a sustainability lens.
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The RMA’s experts are passionate about helping clients plan for what’s next, whilst striving to ensure positive societal impact synchronized with business growth. Its inaugural clients include spirits giantDiageo and the WFA, with which it collaborated recently to create a groundbreaking report covering ten ways advertisers can reduce greenhouse gas emissions in the media supply chain.
As of press time, it’s unclear whether the RMA will focus more on the tactical or the creative side of marketing (or both); but regardless, its launch comes at an inflection point for marketers and advertisers — who are now working to balance market and consumer pressure to deliver impactful, engaging creative that authentically conveys brands’ values; and increasing scrutiny from regulators on the validity of brand claims; as well as increased attention to advertising as an overlooked but addressable carbon hotspot — thanks to significant supply chain emissions during both production and the massive amounts of energy used in their distribution and viewing.
The company says it will offer consultative services to create and shape programs that will drive responsible, sustainable and progressive marketing solutions. The team also helps clients to source and manage third-party relationships to advance progressive marketing programs.
“The Responsible Marketing Agency’s Manifesto states that when brands act responsibly in the media and marketing environment, their success deepens. From brand safety to sustainability, inclusion and ethical marketing practices, the modern marketer’s success hinges on making media and creative fit for progress,” says Hannah Mirza, founder of the RMA and VP of the Bloom Network, who has over 20 years’ experience — including agency, publisher and client-side roles. “However, all too frequently, ESG market solutions are immature and not fit for purpose. So, our team of plug-and-play expert advisors is determined to help in this mission, guiding clients through the ESG maze, navigating new solutions and integrated strategies.
“I love to help clients thrive in uncharted, complex situations — driving opportunities for business growth. As authentic, performance-orientated and trusted independent advisors; we are now offering a full-service capacity — including expertise on supply path optimization in programmatic, through independent analysis, to media decarbonization strategies and DEI programs.”
Investors, customers and regulators have clued in to greenwashing and are stepping up enforcement. By Stephan Liozu from Industry Week • Reposted: July 21, 2023
The era of making fake and false sustainability claims is over. Consumers, NGOs, investors, and regulators are watching closely and are holding businesses accountable. Think twice before making sustainability claims. Do what you say and say what you do. The number of greenwashing lawsuits have exploded for the past five years. A 2020 report by Foley and Lardner reported a doubling of greenwashing lawsuits in the oil and gas industry in just 5 years.
Lawsuits are public and at times very costly. They touch all sectors across all geographies. Let us look at some examples.
Delta Airlines is facing a class action lawsuit over claims that it misrepresented its environmental impact by presenting itself in advertising and promotional activities as being “carbon neutral.”
Nike is being sued by a consumerbecause they “deceive consumers into believing that they are receiving products that are ‘sustainable,’ ‘made with recycled fibers,” and can reduce one’s carbon footprint in a move to “zero carbon and zero waste.
Hyundai Motor UK was fined for claiming that if 10,000 of their hydrogen-powered Nexo cars were on the road, the carbon emission reduction would be the equivalent of planting 60,000 trees
Deutsche Bank is under investigation by regulators in U.S. and Europe because the bank’s asset management arm allegedly sold investment products worth $1 trillion as more environmentally friendly and “sustainable” than they actually were.
Walmart was fined $3 million for making deceptive green claims” about some textile products.
Shell’s 11 board directors were sued for breach of their legal duties under the Companies Act when for adopting and implementing a so-called “Energy Transition Strategy” that fails to align with the Paris Agreement.
Let us start by defining what greenwashing means. It is a practice used by businesses to represent themselves as more sustainable than they truly are. It includes providing misleading information regarding a product’s sustainability or labeling an offer as “green” when it is not.
Greenwashing is not a static concept. It occurs on a spectrum, ranging from wishful thinking to outright deceit. Greenwashing can also be unintentional, as rules and regulations change over time. Finally, it now extends to broader sustainability concepts such as social good and human rights. Government enforcement actions and civil suits alleging greenwashing are on the rise through a myriad of different laws, including securities regulations, consumer protection laws, fraud and misrepresentation statutes and advertising standards. Bottom line, it is serious business!
I propose five steps to avoid greenwashing-related litigation.
1. Review the claims you are making across your business: Conduct an internal inventory of what claims are made and communicated to the market through all the formal and informal channels. That includes written and verbal claims. You might be surprised by the lack of governance and the variability of claims made at the divisional and regional level.
2. Review the exposure related to claims and the quality of the back-up data: Based on this inventory, evaluate the level of risks associated with the most definitive sustainability claims: The above-mentioned lawsuit examples provide a good illustration of how companies might potentially be exposed to greenwashing claims. One of the lessons to be taken from recent legal filings is that companies should avoid sweeping statements about their sustainability efforts. If a company can support concrete statements with concrete data, they are better able to neutralize and defend the greenwashing claims that are now flooding the litigation landscape.
3. Provide training on ESG, green marketing and the associated risks: Part of the sustainability and ESG capability building program should include training on greenwashing and about making sustainability claims in sales and marketing. Teams should be aware of the risks of making unfounded or exaggerated claims. In addition, the same teams should understand the need for solid and concrete data to support claims (including customer data, research data and technical data).
4. Establish a dynamic review of changes in the regulatory landscape and update the governance model: If you pay attention to sustainability reporting requirements, you realize the level of dynamism. Rules and regulations are changing by industry and by country. If you work across many industrial verticals, regulatory changes might happen without your realizing it. Dynamism therefore relates to the speed and complex nature of changes in your regulatory landscape. A review combines the use of the right regulatory benchmark software as well as the involvement of internal experts who scan the landscape. It is really hard to keep up. You might be compliant today but miss an important update in reporting requirements that could impact your sustainability, marketing and communication strategies.
5. If in doubt, bring in the experts. experts include suppliers, consultants, and your internal risk management teams. Do not improvise. It could be costly. Establish regular reviews of your marketing and sales materials by these experts as part of the governance process. Quickly take action if your claims are overstated or non-complaint.
If you are an industrial organization, you do not want to be on the naughty list of greenwashers. That is a given. You must have an internal discussion about the claims you are making to avoid potential risks of litigation. Remember that your customers, investors and regulators might be more sophisticated that you are, and they might reverse-engineer your claims. So, do what you say and say what you do.
Stephan Liozu is founder of Value Innoruption Advisors, a consulting boutique specializing in industrial pricing, XaaS pricing and value-based pricing. He is also the co-founder of Pricing for the Planet, which specializes in pricing for sustainability. Stephan has 30 years of experience in the industrial sector with companies like Owens Corning, Saint-Gobain, Freudenberg and Thales.
Conducting worst-case crisis scenario exercises can help ensure companies are as prepared as possible when, not if, disaster strikes. Indeed, too many business leaders have found out the hard way that today’s ‘it would never happen here” crisis can become a real-life corporate emergency tomorrow. Image: GETTY
By Edward Segal, Senior Contributor at Forbes • Reposted: July 20, 2023
Conducting worst-case crisis scenario exercises can help ensure companies are as prepared as possible when, not if, disaster strikes.
Indeed, too many business leaders have found out the hard way that today’s ‘it would never happen here” crisis can become a real-life corporate emergency tomorrow.
Given the nature of all the crises that could befall organizations, there is an element of urgency for practicing responses to “what-if” situations and ensuring there are plans place to deal with different disasters, scandals, or other emergencies.
Reality Checks
The crisis simulations can provide company executives with reality checks about their readiness, resources, and responses to situations that could impact their organization’s image, reputation, operations, and bottom line.
“Scenarios can be used to raise awareness, to train and reinforce skills and procedures, to assess preparedness and identify gaps, as an aid in developing crisis/emergency response plans, and even to test and improvise such plans,” Eric Stern, a professor at the College of Emergency Preparedness, Homeland Security & Cybersecurity at the University of Albany, said via email.
There are many ways in which the simulations can be conducted, such as tabletop and thought exercises, computer simulations, and role playing off-site. But no matter how it’s done, the issue is whether they are tested at all.
‘Different Definitions’
“Each company will have a different definition of a worst-case scenario—if you’re an airline, it’s a crash or a massive passenger-related issue; if you’re a tech company, it could be a cybersecurity breach; if you’re a nonprofit, it could be insider fraud,” Heather Wilson, managing director and head of crisis and litigation at TrailRunner International, said via email.
The more varied the subject of the exercise, the better. The possibilities could include accidents, strikes, the death of corporate executives, and economic downturns.
The simulations “can be inspired by recent or historical experience of peer organizations at home or abroad, expert risk analysis of contingencies that have not happened yet but are thought likely in the future, as well as by data-driven so-called modeling and simulation techniques,” the University of Albany’s Stern observed.
‘Often Overlooked’
“Worst-case scenario planning is often overlooked but incredibly invaluable in crisis communications, Zoe Mumba, senior manager for public relations and communications at Bitmovin, a video streaming technology company, said via email.
“While it is unrealistic to have an individual and tailored plan for every worst-case scenario, there should be a plan in place for how your company should respond to a crisis in the first few hours,” she said. That should include “the process for communicating with internal and external stakeholders, the approval process for communications ,and even having a template for holding statements.
‘Building Muscle Memory’
“Exercising builds muscle memory. By practicing ways of working in a crisis, a team becomes comfortable working under pressure. They understand what needs to be done, when and how,” Jonathan Hemus, managing director and crisis management consultant at crisis management agency Insignia, said via email.
“This creates confidence and assurance, which is lacking in teams who fail to rehearse. It means the team can focus on the really important parts of managing the crisis—making big decisions—rather than worrying about the process itself,” he observed.
Not Just For Brick And Mortar Organizations
Crisis response exercises are important for every business and organization, including those who operate outside of traditional offices.
Each year the Houston Livestock Show and Rodeo holds a public parade, “and we do a run-through from a crisis communications standpoint,” Danielle Grossman, the organization’s director of strategic communications, said via email.
“We work through our plan from start to finish if there was some type of crisis. We mimic who is contacted first, then the chain of command thereafter and how we ultimately disseminate information to the public, if any,” she noted.
If you don’t think it’s important to anticipate and practice for worst-case scenarios, think again.
By Christopher Faires,Postdoctoral Researcher in Supply Chain Management, Iowa State University and Robert Overstreet, Assistant Professor of Supply Chain Management, Iowa State University via The Conversation • Reposted: July 20, 2023
Back-to-school sales are underway, and people across the country will be shopping online to fill up backpacks, lockers and closets – and they’ll be taking advantage of free returns.
In 2022, retail returns added up to more than US$800 billion in lost sales. The transportation, labor, and logistics involved raised retailers’ costs even higher. Product returns also increase pollution, greenhouse gas emissions and waste in landfills, where many returned products now end up.
So how can retailers fix this problem and still provide quality customer service?
We conductresearch in reverse logistics, focusing primarily on the intersection of retail returns and customer behavior. Here are some insights that can help reduce the abuse of free returns and lower costs without losing quality.
Nudging: In-store vs. shipped returns
Where a product is returned makes a difference. Items returned to the store can be restocked an average of 12 to 16 days faster than those that are mailed. Mailed returns also cost companies more: The difference between the most expensive shipped returns and least expensive in-store returns is $5 to $6 per item. That adds up quickly.
Studies show that customers may be willing to change their return behavior – with a little help.
Behavioral nudges are a technique used in decision-making to steer a person toward a specific behavior. Putting candy at eye-level at the grocery store checkout counter to encourage impulse purchases is an example, or making employee participation in a 401(k) savings program the default option. Another type of nudge involves providing more information.
If you’ve ever shopped online and seen statements like “10 out of 10 customers recommend this product” or “Only 2 items left in stock,” you have experienced the use of information to influence your decision. Nudges emphasizing sustainability may also appeal to customers and have a positive impact on return behavior.
Returning items to a store can avoid extra transportation, shipping and packaging, saving money and avoiding waste and emissions. AP Photo/Mark Lennihan
In a recent survey, 94% of merchants said customers were concerned about sustainability, according to a report from Happy Returns, a logistics firm that works with retailers.
However, a much lower percentage of customers actually make sustainable return decisions. That suggests that customers do not fully understand the environmental impact of their return choices – and it offers a way for retailers to help.
Our research found that when customers were given information about the environmental impact of the different return options, they were nearly 17 times more likely to choose an in-store return rather than returning an item by mail. Nudges like this offer a simple and inexpensive way for retailers to alter customer behavior in favor of sustainability.
Picking up returns to speed up the process
Some customers request to return an item but then wait weeks before mailing it. It’s known as customer procrastination, and it also has a cost. The longer these products remain unprocessed, the more value they can lose.
High-priced electronics, such as laptops and tablets, have short product life cycles and lose value quickly, sometimes at a rate of 1% per week. Seasonal items, such as back-to-school supplies or winter coats, become more difficult to resell if retailers get them back on shelves after demand has bottomed out. A returned item’s resale value determines its destination: It can end up back on store shelves, sold to liquidators for pennies on the dollar or sent to a landfill.
Transportation is a large expense for retail returns, for both companies and the planet. AP Photo/Mark Lennihan
A home pickup service for time-sensitive returns could reduce delays in a way that is also useful to the customer. A small number of pickup vehicles collecting returns from customers could avoid multiple shipments, reducing total miles traveled and cutting vehicle emissions, while also avoiding the need for each return to be individually packaged.
Our research found that a pickup service could help retailers collect returns faster and reduce product value loss, particularly for high-priced products and products that lose value quickly, such as consumer electronics.
How to change policies without losing customers
While several retailers have stopped offering free returns or changed their return policies over the past year, our research suggests that changes affecting all customers might not be the best choice.
Broad policy changes that affect everyone might involve limiting the number of returns per customer, charging a fee for returns or shortening the window for returns. An alternative is a targeted return policy that applies only to people who abuse the system. For example, retailers can restrict free returns for people who repeatedly buy more items than they intend to keep, knowing they can return the rest.
Offering free returns carries a cost for retailers, but ending return policies can also turn off customers. Photo: Johannes Eisele / AFP via Getty Images
We conducted two studies to explore how customers would view changes to a retailer’s return policies.
In the first study, 460 participants were significantly more likely to speak negatively about the retailer – a fictitious company, in this case – when the retailer’s returns policy change applied to everyone and affected everyone equally.
Our follow-up study asked 100 online customers about their thoughts regarding generalized versus targeted policy changes. When the return policy change targeted customers who abused returns, 44% of the participants expressed positive emotions, and only 13% expressed negative emotions.
Those positive emotions included comments like, “I would feel proud of the company for taking action against people who try to cheat the system.” Such responses indicated that participants understood that cheaters were increasing the price paid by everyone.
But when the return policy change applied to everyone, 64% of the participants expressed negative emotions. Nearly half indicated they would speak negatively about the policy change to family and friends, and 42% said they would shop at another store.
Other ways to help customers make better decisions
Retailers can also change the online shopping experience before the customer makes a purchase to avoid the need for returns.
One way is to obtain detailed customer feedback on returns and use that to provide better product descriptions to customers. Another is to avoid incentivizing the wrong behavior. Well-intentioned free shipping on orders over a set dollar amount could encourage customers to overpurchase and later return products.
Posting videos of items for sale can help buyers spot problems that photos might hide. Virtual fitting rooms that use an avatar of the customer to try on clothes virtually can help customers choose the right size the first time.
There is no doubt that managing retail returns is a difficult task. To make the process more sustainable, retailers need to help customers make choices that limit the need for a return or that minimize the impact of a return on the environment and, of course, the retailer’s bottom line.
By Eleftheria Kontou, Assistant Professor of Civil and Environmental Engineering, University of Illinois at Urbana-Champaign via The Conversation • Reposted: July 20, 2023
More than 3.6 million electric cars are driving around the U.S., but if you live in an apartment, finding an available charger isn’t always easy. Grocery stores and shopping centers might have a few, but charging takes time and the spaces may be taken or inconvenient.
Several states and cities, aiming to expand EV use, are now trying to lift that barrier to ownership with “right to charge” laws.
Illinois’ governor signed the latest right-to-charge law in June 2023, requiring that all parking spots at new homes and multiunit dwellings be wired so they’re ready for EV chargers to be installed. Colorado, Florida, New York and other states have passed similar laws in recent years.
But having wiring in place for charging is only the first step to expanding EV use. Apartment building managers, condo associations and residents are now trying to figure out how to make charging efficient, affordable and available to everyone who needs it when they need it.
Electric cars can benefit urban dwellers
As a civil engineer who focuses on transportation, I study ways to make the shift to electric vehicles equitable, and I believe that planning for multiunit dwelling charging and accessibility is smart policy for cities.
Transitioning away from fossil-fueled vehicles to electric vehicles has benefits for the environment and the health of urban residents. It reduces tailpipe emissions, which can cause respiratory problems and warm the climate; it mitigates noise; and it improves urban air quality and quality of life.
Yet almost a quarter of all U.S. housing structures have more than one dwelling unit, according to the 2019 American Housing Survey. In California, 32.5% of urban dwellings have multiple units, and only a third of those units include access to a personal garage where a charger could be installed.
Even if installing a personal charger is an option, it can be expensive in a multiunit dwelling if wiring isn’t already in place. And it often comes with other obstacles, including the potential need for electrical upgrades or challenges from homeowner association rules and restrictions. Installing chargers can involve numerous stakeholders who can impede the process – lot owners, tenants, homeowners associations, property managers, electric utilities and local governments.
Right-to-charge laws aims for ubiquitous home charging
Right-to-charge laws aim to streamline home charging access as new buildings go up.
Illinois’ new Electric Vehicle Charging Act requires that 100% of parking spaces at new homes and multiunit dwellings be ready for electric car charging, with a conduit and reserved capacity to easily install charging infrastructure. The new law also gives renters and condominium owners in new buildings a right to install chargers without unreasonable restriction from landlords and homeowner associations.
Public chargers typically aren’t as convenient as charging at home, and chargers aren’t always available. Photo: martin-dm/E+ via Getty Images
California, Colorado, Florida, Hawaii, Maryland, New Jersey, New York, Oregon and Virginia also have right-to-charge lawsdesigned to make residential community charging deployment easier, as do several U.S. cities including Seattle and Washington, D.C. Most apply only to owner-occupied buildings, but a few, including California’s and Colorado’s, also apply to rental buildings.
Chicago officials have considered an ordinance that wouldinclude existing buildings, too.
Sharing chargers can reduce the cost
There are several steps communities can take to increase access to chargers and reduce the cost to residents.
In a new study, colleagues and I looked at how to design shared charging for an apartment building with scheduling that works for everyone. By sharing chargers, residential communities can reduce the costs associated with charger installation and use.
The biggest challenge to shared charging is often scheduling. We found that a centralized charging management system that suggests charging times for each electric car owner that aligns with the owner’s travel schedule and the amount of charge needed can work – with enough chargers.
Apartments in a tower in China look down on an EV charging station covered in solar panels. Photo: Zhihao/Moment via Getty Images
In a typical multiunit dwelling in Chicago – with an average of 14 cars in the parking lot – a small community charging hub with two level 2 chargers, the type common in homes and office buildings, can cover daily residential recharging demand at a cost of about 15 cents per kilowatt-hour. But having only two chargers means residents are waiting on average 2.2 hours to charge.
A larger charging hub with eight level 2 chargers in the same city avoids the delay but increases the cost of charging to 21 cents per kWh because of upfront cost of purchasing and installing the chargers. To put that into context, the average electricity cost for Chicago residents is 16 cents per kWh.
The future of charging management at multiunit dwellings will be automated for efficiency, with a computer or artificial intelligence determining the most efficient schedule for charging. Optimized scheduling can be responsive to the times renewable electricity generation sources are producing the most power – midday for solar energy, for example – and to dynamic electricity pricing. Automation can also eliminate delays for drivers while saving money and reducing the burden on the electric grid.
The current limited access to home charging in many cities constrains electric vehicle adoption, slows down the decarbonization of U.S. transportation and exacerbates inequitiesin electric vehicle ownership. I believe efforts to expand charging in multidwelling buildings can help lift some of the biggest barriers and help reduce noise and pollution in urban cores at the same time.
Hot Bread Kitchen is a New York City-based nonprofit organization that creates economic opportunity for immigrant women and people of color with training and job placement in the food industry. (Image courtesy of Hot Bread Kitchen)
When we look at what it takes to be successful in the workplace — and what makes a workplace successful — it becomes immediately apparent that workers need agency over their choices, goals and actions. It’s also clear that women and people who identify beyond the gender binary are systematically denied agency in the workplace — as in, the opportunity to make decisions, take purposeful action and pursue goals.
The COVID-19 pandemic highlighted myriad barriers to women’s agency in the workplace, attributable to outdated societal gender norms. In the first months of the pandemic in the United States, women’s employment fell precipitously in comparison to men. The reason? Women still tend to be more likely than men to leave their jobs or downsize their positions to take care of children and/or elderly family members when the need arises.
For those that remain in the workforce, factors limiting the agency of women and gender-expansive people abound. Women’s agency is hindered because they are more likely to fill service-industry jobs that tend to offer limited flexibility or benefits, and women with lower educational attainment are hit the hardest.
Transgender and gender-expansive people face workplace barriers due to being generally underrepresented in the U.S. workforce, and consistently enduring threats of violence, discrimination and stigma. Lack of guaranteed healthcare or paid leave, limited access to childcare, inflexible schedules, fewer opportunities to build knowledge and skills, and much more intersect to limit women and trans people’s freedom to pursue their professional goals.
This shift toward lower workforce participation among women and trans people — and the increased gender inequality that follows — has lasting implications for the future options and decision-making of workers, not to mention for younger generations. Further, lack of workforce diversity is both a result of, and leads to, lack of leadership diversity, further entrenching these conditions.
Mindful of lessons learned from the pandemic, and with the knowledge that women and gender-expansive people are critical to business’ success, we are more aware than ever that organizations and workers excel when they are led with wisdom and compassion. When ranked by their employees, 55 percent of women leaders were perceived to have these two critical traits, versus 27 percent of men. The point is not that women are necessarily better leaders, but rather that they tend to embrace leadership practices that foster more inclusive work environments for everyone, which in turn creates a bulwark against the trends listed above.
The existing gender gap in workplace leadership has real ramifications for the bottom line and for our culture. When various industries’ current leaders (who, generally speaking, tend to be men) continue to take a “traditional” approach to leadership and company policies — one that favors business-as-usual over humanity and equity — it further entrenches norms that exclude women and gender-nonconforming people from leadership positions, diminishes overall productivity, and has larger implications for generational wealth. And, as we saw in the early days of the pandemic, these approaches can push women out of the workforce entirely and limit agency for the longer term.
By embracing an approach focused on wisdom and compassion, employers — from major corporations to local nonprofit organizations — can play an important role in advocating for women’s and gender-expansive people’s agency and success in the workforce and beyond, ensuring all workers have the resources they need to excel at work and at home.
Hot Bread Kitchen provides immigrant women and people of color with culinary skills training and professional readiness programs, job placement, food business entrepreneurship assistance, social services support, bridge training, an extensive employer network, and more. (Image: Wini Lao for Hot Bread Kitchen)
How Hot Bread Kitchen supports empowered workers
This is where Hot Bread Kitchen comes in. Hot Bread Kitchen is a New York City-based nonprofit organization that creates economic opportunity for immigrant women and people of color using the vibrant food industry as a catalyst for personal and professional growth.
We support our program members — who are disproportionately affected by social and economic barriers to wealth generation and long-term stability — as they pursue their career ambitions. We support women and gender-expansive people by providing culinary skills training and professional readiness programs, job placement, food business entrepreneurship assistance, social services support, bridge training, an extensive employer network, and more.
In the years since our founding, it has become clear that these strategies are critical tools for advancing women’s ability to find and sustain employment, grow in their careers, make choices for their families, and achieve their goals.
This holistic approach has been an evolving aspect of Hot Bread Kitchen’s model. When our organization started in 2008, we were a bakery with a simple, but important, mission: teach women bakery skills and connect them with food industry employers to secure jobs. Many other workforce development programs still drive toward a similar goal today: get people who are looking for work in the door, give them relevant skills training, and connect them with a job.
While there’s no arguing that this is an important objective, working side-by-side with our participants over the years has evolved our understanding of what it means to ensure women’s agency, a thriving career, or a meaningful public life. At Hot Bread Kitchen, we learned that for our members to be successful in the long run, we needed to do more — to take an approach that supports the whole person, not just the worker.
Empowering women to succeed in the workplace demands a comprehensive approach to overcoming obstacles, both at work and beyond. But what exactly does this look like, and what can you do to help?
By Amy Brown from Triple Pundit • Reposted: July 18, 2023
The world needs to cut greenhouse gas (GHG) emissions by almost half this decade to limit warming to 1.5 degrees Celsius as recommended by climate scientists, the United Nation warns. As companies wrestle with how best to meet their net-zero targets, technology presents an important and powerful tool to determine which approaches will make the greatest impact.
“Technology plays a key role in untangling some of those challenges and helping organizations achieve net-zero,” says Salma Bakr, product lead at the sustainability software company FigBytes.
Several mitigation options costing less than $100 per ton of carbon dioxide equivalent could reduce global emissions by at least half by 2030 compared to 2019, according to the sixth assessment report from the Intergovernmental Panel on Climate Change (IPCC). Examples include using more renewable power generated from sources like solar and wind, transitioning to more fuel-efficient vehicles, and using more energy-efficient technologies.
That’s good news for the more than 90 percent of business leaders who say they prioritize long-term decarbonization. “Companies play a crucial role in tackling climate change and benefit from decarbonization by reducing risks like extreme weather events and policy changes,” Bakr says. “In the long run, and as more low-carbon solutions are adopted and become more affordable, decarbonizing a business saves operational costs and enhances efficiency, for example, where you pay lower bills for your energy and waste.”
Why technology is key to unlocking solutions for climate action
In the context of decarbonizing businesses, technology comes under two categories, Bakr explains: digital technologies that enable a net-zero future, and physical technologies for climate mitigation or adaptation.
These technologies complement each other in support of net-zero targets. For example, digital technologies enable efficient and scalable processing of climate data, allowing for more informed problem detection and decision-making. They also allow companies to evaluate multiple decarbonization solutions virtually and chart the best path forward, Bakr says. Together, digital technologies have the potential to reduce emissions by up to 20 percent by 2050 if scaled and adopted in high-emitting sectors like energy, materials and mobility, according to the World Economic Forum.
Physical technologies, on the other hand, enable climate mitigation and adaptation. The IPCC’s sixth assessment report shows that several of these technologies have high potential for GHG reduction at scale. For climate mitigation, this includes solar and wind power, energy-efficient appliances and lighting, and fuel-efficient vehicles. For climate adaptation, a key example is building resilient power systems which provide a diverse and stable energy supply.
How digital technologies can accelerate progress to net-zero
Digital technologies enhance decarbonization efforts in multiple ways, Bakr says. Even more good news: Organizations of all sizes across every industry already use many of these digital tools to ease their progress toward strategic goals — making it fairly seamless to digitize their approach to climate action as well.
For example, most businesses use foundational technologies to support daily tasks of measurement, reporting, and basic analytics for data-driven insights. Examples include enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and supply chain tracking systems.
“This means organizations don’t have to start from scratch,” Bakr says. “For example, they can add sustainability solutions ‘on top’ of their existing systems.”
Organizations can also use decision-making technologies as part of the daily course of doing business, where machine learning can be leveraged, for example, to imitate how humans learn and ingest new data, which can improve decision-making accuracy, Bakr says. Such technologies also allow organizations to use historical data to forecast future events, or provide actionable recommendations to inform actions around decarbonization.
Another group of digital technologies increasingly embraced on the decarbonization journey are sensing and control technologies. These range from automation, robotics and drones to enhanced connectivity through the Internet of Things. By deploying these technologies, companies can more easily collect data from physical systems and more accurately control things like office temperature, humidity and lighting based on occupancy.
Yet another category are enabling technologies that support organizations to operate more efficiently. Examples include cloud computing and mobile communication, which allow organizations to scale their resources on-demand.
Technology advances ease climate accounting
“Tracking progress is crucial,” in pursuit of climate goals, “as net-zero is all about beating the clock and making progress,” Bakr says. “That’s why climate action needs climate accounting first, including a comprehensive emissions inventory. And the main challenge in establishing an emissions inventory is a data problem: data collection, consolidation, validation, verification and so on.”
This is where technology is an asset, she explains. A climate accounting solution collects, validates and verifies activity data, and conducts basic emissions modeling, reporting and analytics. Making that solution cloud-hosted “helps scale data collection, cross-collaboration across teams and geographies, and stakeholder engagement, where you can collect data from anywhere in the world and scale your computations as needed,” Bakr says.
Climate accounting systems can be integrated with decision-making technologies such as machine learning to augment the intelligence of an organization’s analytics, for example, to ensure the right emission factors are applied to calculate emissions data, she adds.
Companies and organizations that have set science-based targets should also keep watch on the “Progress Framework” under development by the Science Based Targets initiative, Bakr advises. It aims to advance the measurement, reporting and verification of science-based targets, providing clear and standardized expectations and guidance on how to measure, report and verify climate action progress against those targets.
This framework will support transparency and integrity by holding companies and financial institutions accountable for their climate targets. Development is expected to be completed at the 2023 U.N. Climate Change Conference (UNFCCC COP28) in Dubai in December.
Overcoming the challenge of future scenario planning
After the initial steps of streamlining a baseline emissions inventory and setting net-zero targets, an important but often challenging part of the decarbonization journey is the ability to forecast future emissions scenarios and understand associated risks and opportunities. “Many organizations find challenges in defining and analyzing net-zero scenarios,” Bakr says. “It’s a tricky and complicated process.”
But organizations can overcome that challenge by better understanding what is involved in a future climate scenario, she advises. “Scenarios should challenge business-as-usual assumptions about the future, but also illustrate a credible story comprising possible and consistent future events. Scenarios should also be relevant, meaning they explore future insights relating to the various implications of climate-related risks and opportunities. They should also be distinctive by exploring different permutations and combinations of key factors impacting future developments to generate multiple decarbonization alternatives for the organization to select from.”
Again, an organization can turn to technology to do this. “A solid climate accounting solution, coupled with decision-making capabilities, can help an organization forecast and visualize the future emissions associated with various scenarios based on the various data inputs considered,” Bakr says.
At the same time, technology isn’t a panacea, and it also has its own footprint to consider. “As we consider various technologies in the transition to net-zero, we need to also understand that those digital and physical technologies do produce emissions in one way or another,” she adds. “We need to take a systemic approach to tackling emissions reduction and stay on top of the latest research and development efforts.”
Inaction is not a possibility
Taking action is the only option, Bakr points out. “The journey to net-zero is bumpy but inevitable,” she says. Organizations can set themselves up for success with a solid climate action strategy that aligns net-zero targets with the latest climate science, and leverages technology to speed up the transition.
“This will make the net-zero journey as efficient, effective and consistent as possible,” she says. Crucially, the goal should be to invest in net-zero innovation that extends beyond any single organization’s value chain: “Focus on bold reductions, first and foremost. And if your progress strays, make sure you realign by identifying more reduction potentials.”
This article series is sponsored by FigBytes and produced by the TriplePundit editorial team.
In 2018, Everlane made an environmental commitment to eliminate all virgin plastic from its supply chain. For Earth Month in 2023, the brand celebrated its progress with a limited-edition collection of “ReTrack” styles. Photo: Courtesy of Everlane
By Maura Brannigan from Fashionista via Yahoo Life • Reposted: July 18, 2023
As the fashion industry becomes more and more implicated in the climate crisis, brands and retailers are beginning to take more and more responsibility for their roles in it.
“Responsibility” takes many forms, of course: There’s true accountability and transparency, and then there’s greenwashing, in which companies of all makes and models invest more in marketing themselves as being sustainable than in tangibly tackling their environmental impact. It’s no surprise that the former is easier — and, often, more appealing — than the latter. That’s because in fashion, the climate crisis is an issue of systemic proportions. But a growing number of businesses are making key C-suite hires to rebuild those systems from the inside.
Enter the chief sustainability officer, a role tasked with addressing an organization’s approach to climate responsibility and, theoretically, minimizing the company’s environmental impact. And the job description is being written in real time.
“One of the toughest challenges in my career was creating a job for myself that hadn’t existed before,” says Reformation‘s Chief Sustainability Officer and VP of Operations Kathleen Talbot, who first joined the brand in 2014. “Sustainability was a brand-new field. When I reached out to Reformation, I had no background in fashion or business, but I was committed to learning and passionate about helping define what sustainability would look like at Reformation in the long term.”
Now a decade in, Talbot has worked to define Reformation’s environmental practices, from investing in green building infrastructure to publishing the brand’s quarterly Sustainability Report. But every retailer is venturing into this work from its own unique starting block, which makes this position a particularly challenging one.
Ahead, we spoke with folks at companies like Everlane and Depop about what a chief sustainability officer (or an equivalent title) actually does, why their job matters and how to break into the field for yourself.
How to get your big break in sustainability
Full-time roles in the intersection of fashion and sustainability are few and far between, which means that the people who currently hold them are at the top of their proverbial game — and have the experience to show for it.
While this often takes the form of a stacked resume, those in the field have an innate fascination with and appreciation of this planet, as well as knowledge of how to do better by it.
“I joke that I fulfill every stereotype you may have of a Seattleite,” says Reformation’s Talbot. “I’ve been interested in sustainability my whole life and have been aware from an early age that our future is dependent on changing our relationship with the environment.”
Talbot began her career in academia, having gotten a master’s degree in sustainability before looking to find ways to bridge the concepts she was teaching with action. Consumer products presented a new challenge: “There’s such an enormous opportunity to make things differently.”
Like Talbot, Kirsten Blackburn entered the apparel space from the outside, having previously worked in the policymaking and nonprofit sectors. While building out the advocacy program at The Conservation Alliance, which funds and partners with grassroots organizations working to protect wild places across North America, she began to explore the ways in which consumer structures, like fashion brands, can most efficiently move policy.
“When businesses pool resources and advocate for causes they care about, it makes a difference, more so than other actors in the policymaking space,” says Blackburn, director of Keen‘s environmental and social justice program, Keen Effect. “Brands — particularly privately-held, family-run brands like Keen — have a really huge opportunity to affect change.”
Justine Porterie, Depop‘s director of sustainability and DEI, entered sustainability from the corporate side, supporting large investors and fast-moving consumer-goods companies, like Unilever and PwC, with their responsible investment and sustainability strategies. After nearly a decade, Porterie joined a social incubator that investigated business opportunities to turn waste into resources.
“I stumbled upon fashion and was shocked by how wasteful the industry is,” she says. “One truckload of clothes ending up in the landfill every second — that’s mad, and what triggered the idea for my own company.”
Called Outstand, Porterie’s business specialized in curating secondhand fashion as an answer to curbing apparel’s waste crisis. She connected with Maria Raga, Depop’s former CEO, not long after, and began consulting with the peer-to-peer social e-commerce platform to help create its first sustainability strategy. Porterie officially joined the team in February 2020, and the rest, as they say, is history.
What your day-to-day might look like
At the highest level, a director of sustainability is responsible for identifying new ways to incorporate a climate focus across a brand’s operations. It’s a broad and seemingly ambitious set of obligations, but experts explain that typically, their job descriptions can be broken down into various subsets, including (but not limited to) supply chain management, political advocacy and PR and marketing.
To execute this position effectively, these folks need to touch every part of the business. At Reformation, for example, Talbot leads a team of six sustainability professionals to rally the brand’s 1,000-person employee base around a high-level vision.
“I consider us to be catalysts,” she says. “How do you actually adopt material innovations and key transitions? Identify and build relationships with strategic suppliers for decarbonization programs? Reduce transportation emissions? This work happens through daily decisions and doing ‘business per usual’ in a different way, so we’re constantly facilitating and pushing the team forward.”
The role extends beyond internal communications, of course: To functionally move the needle, those actually consuming the product need to “buy in” to the mission, too. This is where annual “sustainability reports” come in: They have different names from brand to brand, but serve a similar purpose of outlining goals and, more crucially, holding themselves — and their progress — accountable as they work toward those goals.
Everlane’s Impact Report, for example, outlines a short- and long-term strategy around its sustainability objectives by establishing three pillars: 1) Keep Earth clean, 2) Keep Earth cool and 3) Do right by people. Katina Boutis, the brand’s director of sustainability, isn’t only responsible for defining these intentions —she’s also tasked with bringing them to life.
“Our success hinges on our customers being brought along this journey with us,” says Boutis. “A really big part of what we’re doing is translating the work we do behind the scenes, not just to our own internal teams, but also to our broader community that we’re trying to foster.”
The skills you’ll want to hone
There are a number of opportunities in sustainable fashion, and Depop’s Porterie finds they all require a slightly different skillset. Working in the sustainability team at a fashion company is different than in, say, business development at a circular fashion company, or in the field at a regenerative cotton farm. But all three positions contribute to advancing the sustainability agenda in the industry. For the wider team at Depop, stakeholder management is particularly essential — after all, Porterie says, their aim is to make their agenda everyone’s agenda, so influence is critical.
“I always recommend that people keen to break into sustainable fashion start by interrogating what they’re good at and what excites them first,” she says. “Is it data, reporting, policy, technology, agriculture, marketing, design?”
Beyond individual interests, these positions also require a profound and technical understanding of sustainability and the wider fashion industry. For Kenneth Loo, co-founder and CEO of communications agency Chapter 2, this includes knowledge of the reengineering of production processes, recycling, certifications and various sustainable materials and chemicals.
“The narrative has shifted,” says Loo, whose Sustainability division at Chapter 2 supports clients in the clean-fashion spaces. “We no longer discuss mere factories, but technology platforms striving for innovation and ‘future-proofing’ that seek recognition from industry leaders.”
Finally, experts recommend a quality slightly less quantifiable, and that’s work ethic, fueled by an unrelenting growth mindset. At Keen, Blackburn describes this as a “fail-fast and fail-forward mentality,” to take the challenging, largely systemic problems you’ve been handed and come up with creative solutions to fix them.
“How can you take learnings from something that didn’t go well and celebrate it? Every day we’re uncovering something we don’t know, and that’s not unique to KEEN — that’s sustainability and climate writ large,” says Blackburn. “We’re hoping that we’re collectively doing more of the right things so that we’ll collectively make an impact in the future.”
What you’re working toward
“Sustainability is now non-negotiable in fashion, thankfully,” says Reformation’s Talbot. “Given our industry’s outsized environmental impact, there’s more customer demand to integrate sustainability into brand and product than ever. It follows that we’re seeing more career opportunities in the field open up, even compared to just five years ago.”
In short: We’re at a tipping point because people — and regulators — are no longer having it. Depop research shows that 60% of the platform’s users would rather buy from a company with environmental and social standards, and they’re not afraid to walk away or even publicly boycott those who do not meet their standards.
“Navigating increasing stakeholder expectations and changing legislative landscapes alongside business priorities is not an easy task,” says Porterie. “Until sustainability is entirely embedded in the DNA and ways of working of fashion companies, there will be space for sustainability professionals to keep on driving the agenda from within.”
These professionals have their work cut out for them, to be sure, but progress is afoot: Just last month, EU parliament voted to support a set of anti-fast-fashion recommendationsthat force the fashion industry to operate more sustainably. Then there’s New York’s Fashion Act, which aims to hold major clothing labels (i.e., those with over $100 million in global revenue) accountable for their environmental and social impacts.
“These policies are not something that I think anyone would’ve necessarily thought would be possible,” says Everlane’s Boutis. “Sustainability professionals are critical at any level in any organization, but I think there’s a special place in certain industries, like fashion, that have this ability to cut through cultural movements and spaces in that way.”
Underwater view of the ocean surface. Image via Shutterstock/Dudarev Mikhail
What’s coming next for sustainability: Mining, oceans, artificial intelligence and justice. By Dylan Siegler from Greenbiz.com • July 18, 2023
Every July, a portal into the future opens. The near future. Say, one to three years out.
During this time of year, we look into that near-future-portal — the database of more than 500 proposed speakers to our February GreenBiz conference — and patterns, distinct from prior years, emerge. We see what the corporate sustainability ecosystem will be talking more and more about next.
I don’t mean decarbonization, data or climate tech, and I don’t mean supply chain issues, nature, Scope 3 emissions or DEI. Those make up the current canon of corporate sustainability priorities, whether your company has a sophisticated sustainability strategy or is just getting started. Combined, they were mentioned more than 1,500 times throughout proposed session descriptions — I ran the write-ups through an online word-frequency counter.
Those topics will certainly be covered at GreenBiz in February, but they were likely once first glimpsed through this proposal season wrinkle-in-time trick in prior years.
Here is a look at what’s just now hitting the Top 40 charts for the first time. It’s a non-exhaustive selection of topics that represent a view to the future of rising risks and opportunities that senior sustainability executives and rising stars are starting to grapple with and want to present or talk about with peers.
What you should have on your radar
Mining and critical minerals Our applicants have tuned in to the challenges around achieving global decarbonization, particularly the energy transition, given it requires critical minerals such as cobalt, lithium, copper and other materials often mined in geopolitically iffy regions.
A sustainability head at Oracle proposes to tease out how the auto industry is achieving traceability of some critical minerals (as well as human rights, carbon and other metrics) at scale using a blockchain platform. Consultancy ERM proposes to bring together reps from mining companies with stakes in critical minerals to talk successes and failures so far in sourcing these materials in response to “customer demand and government incentives like the Inflation Reduction Act (IRA).” Others propose more potentially contentious dialogue: Positive takes on the controversial prospect of deep sea mining, and a celebration of a Nevada lithium mine project in an Endangered Species Act conflict.
Oceans The proposals we received this season were not only about protecting oceans, but using them. Multiple proposals promote seaweed as a solution. Seaweed-based yarn startup Keel Labs proposes to spotlight the “potential of the ocean to accelerate our planet’s development towards a more sustainable future,” while World Wildlife Fund proposes to “explore whether accelerating a market for seaweed could be a climate change solution.” Another swath of ideas from entrepreneurs position oceans as central to carbon removal.
A wave of ocean plastic-related proposals and other upstream-pollution-related content include a pitch from Dell and HP on “advancing commercially viable and socially-responsible ocean-bound plastics.”
Artificial intelligence The applications of AI proposed have gone from grand and theoretical to remarkably tactical. UL Solutions proposes a session on “how to write for AI and machine learning readers of ESG reports and communications, as these are the most ‘influential’ readers of ESG reports, parsing and mining company data for raters and rankers.” An SAP proposal promises to show how generative AI can help companies “achieve immediate transparency into their suppliers’ ESG profiles,” and Autocase offered to introduce an AI-assisted online decarbonization planning tool for real estate portfolios.
Justice This year social justice showed up in more intersectional, and specific, contexts than before, and from more innovators building justice into their business models. Supplements company Ritual pitched a session on identifying and tracking PFAS through the supply chain that would make “explicit intersections between sustainability, human rights, justice and traceability.”
Biomaterials startup erthos proposed to discuss how “the intersections of race, gender, social and economic status, and age influence how we view, engage, and protect our planet.” Startup GreenWealth Energy connected environmental justice and workforce development to public EV charging infrastructure funding by highlighting state and local government programs supporting under-resourced “community involvement in the electrification space.”
Is this everything you should be watching? No chance. Is there a good chance these topics will gain traction in the coming year? I’d bet on it. And if it’s something you should start to pay more attention to to help you do your job, we’ll include it in the GreenBiz 24 program. Speakers and sessions will start to be announced next month.
Entrepreneurs and business leaders can play a pivotal role in advancing the green building movement by transforming their offices into sustainable workspaces. Through these actionable steps, businesses can contribute to environmental sustainability while reaping benefits such as cost savings and improved workplace health.
By Ari Chazanas from Entrepreneur.com • Reposted: July 16, 2023
As concerns over climate change and environmental sustainability grow, green buildings represent a significant shift in the real estate development landscape. Defined as structures designed and managed to reduce their environmental impact, green buildings have become a focal point for businesses committed to environmental sustainability.
For entrepreneurs and business leaders, there’s an increasing responsibility — and indeed an opportunity — to transition their existing buildings or offices into greener spaces. Rooted in ecological stewardship, these architectural marvels are designed to minimize environmental impact through resource conservation and sustainability.
Energy efficiency: The first step toward green buildings
While green buildings represent a significant evolution in real estate, their implications go beyond the initial construction phase. Entrepreneurs and business leaders have a significant role to play in this green revolution. By transforming their offices into eco-friendly spaces, they can contribute to environmental preservation while fostering a healthier work environment and reducing operating costs.
Transforming an office into a green building involves several interconnected steps. The first is energy efficiency, a cornerstone of the green building philosophy. Efficient energy use not only reduces carbon emissions but also lessens reliance on non-renewable power sources. Energy efficiency is the backbone of any green building. By optimizing energy use, businesses can significantly reduce their carbon footprint. Replacing conventional lighting with energy-efficient LED or compact fluorescent lights (CFLs) can reduce energy consumption by up to 75%. Furthermore, intelligent lighting systems, such as those with occupancy sensors or natural light adjustments, can further minimize energy wastage.
High-performance appliances, rated by programs like ENERGY STAR, can offer significant energy savings over their conventional counterparts. Building automation systems, managing HVAC, lighting and other power systems, ensure energy is used only when needed, leading to substantial energy conservation. Green buildings, through energy-efficient design and sustainable practices, can lead to significant cost savings in the long run.
Harnessing renewable energy
To take the leap from energy efficiency to green energy, businesses can transition to renewable energy sources. Green buildings ideally source their power from renewable resources, thus reducing reliance on fossil fuels and minimizing carbon emissions. Installing solar panels, for instance, can help offset a significant portion of a building’s energy consumption.
If on-site generation is unfeasible, business leaders can explore renewable energy contracts. Numerous energy providers offer “green power” plans where the electricity is sourced from renewable energy projects. If installing renewable energy systems is not feasible, consider green energy contracts. Many energy providers offer plans where the electricity is sourced from renewable sources.
Water conservation and management
Water is another critical resource that can be managed more effectively. Small changes, like installing low-flow taps, toilets and urinals, can significantly reduce water consumption in the office. Going a step further, consider implementing a rainwater harvesting system. Rainwater can be collected, stored and used for non-drinking purposes, such as watering plants or flushing toilets. Low-flow fixtures, such as taps, toilets and urinals, can reduce water consumption by up to 20%.
Aside from installing low-flow fixtures and rainwater harvesting systems, businesses can explore other methods of conserving water. Greywater recycling systems, for instance, can treat and reuse water from sinks, showers and washing machines for non-potable uses like flushing toilets and irrigation. Businesses can also implement water-efficient landscaping, using native or drought-resistant plants, which require less water and maintenance. Ensuring regular maintenance to prevent leaks, which can lead to significant water wastage over time, is another practical step toward water conservation.
Waste management
Waste management is an essential component of a green office. Establishing recycling programs can ensure that waste materials such as paper, plastic, metal and electronics are properly disposed of and repurposed. If the office has a kitchen, consider composting food waste. Not only does this reduce the amount of waste going to landfills, but the resulting compost can be used to nourish office plants or donated to local community gardens. By establishing recycling programs, businesses can ensure that waste materials like paper, plastic and metal are properly disposed of and repurposed. Composting organic waste reduces the amount of waste going to landfills while producing nutrient-rich soil for use in landscaping.
Beyond recycling and composting, businesses can implement waste reduction strategies. This could involve going paperless, using digital alternatives for meetings and note-taking, and reducing unnecessary packaging in the office. Moreover, businesses can explore the concept of a circular economy, where resources are used for as long as possible, and at the end of their life, components are recovered and regenerated. This could involve initiatives like leasing office equipment or using modular furniture that can be easily repaired, upgraded or disassembled for recycling.
Enhancing indoor environmental quality
Good ventilation not only ensures an adequate supply of fresh air but also helps control indoor humidity levels, reducing the risk of mold growth. Businesses can also consider “thermal comfort,” which refers to maintaining a temperature range in which people feel comfortable. Thermal comfort depends on factors like air temperature, humidity, air movement and the type of clothing worn by people. The indoor environmental qualitysignificantly affects occupant health and productivity. Using low-VOC (volatile organic compounds) or VOC-free paints, adhesives and cleaning products reduces exposure to harmful chemicals. Additionally, incorporating indoor plants can improve air quality while creating a more calming and attractive environment.
Embarking on the journey to transform an office into a green building requires commitment and often investment. Still, the benefits — from cost savings and improved employee health to promoting a more sustainable future — make it a worthwhile endeavor. By taking these steps, entrepreneurs and business leaders are not just creating healthier, more sustainable workplaces. They are joining the green building revolution, contributing significantly to the future of sustainable real estate development and shaping the way we think about the spaces in which we work.
The evolution of the green building movement offers an array of opportunities for entrepreneurs and business leaders. By staying abreast of the latest green practices and technologies and fostering a culture of sustainability within their organizations, they can make a meaningful contribution to the environment while reaping tangible business benefits. It’s a win-win scenario, where businesses can bolster their bottom line while making strides towards a more sustainable and ecologically responsible world.
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